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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
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<SEC-DOCUMENT>0001445305-10-000875.txt : 20100812
<SEC-HEADER>0001445305-10-000875.hdr.sgml : 20100812
<ACCEPTANCE-DATETIME>20100812152028
ACCESSION NUMBER:		0001445305-10-000875
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20100704
FILED AS OF DATE:		20100812
DATE AS OF CHANGE:		20100812

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			QUICKLOGIC CORPORATION
		CENTRAL INDEX KEY:			0000882508
		STANDARD INDUSTRIAL CLASSIFICATION:	SEMICONDUCTORS & RELATED DEVICES [3674]
		IRS NUMBER:				770188504
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-22671
		FILM NUMBER:		101010970

	BUSINESS ADDRESS:	
		STREET 1:		1277 ORLEANS DR
		CITY:			SUNNYVALE
		STATE:			CA
		ZIP:			94089-1138
		BUSINESS PHONE:		4089904000

	MAIL ADDRESS:	
		STREET 1:		1277 ORLEANS DRIVE
		CITY:			SUNNYVALE
		STATE:			CA
		ZIP:			94089-1138
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>quik2010070410q.htm
<DESCRIPTION>FORM 10-Q
<TEXT>
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<a name="s109b6603-9896-4fb1-bed2-0f5eed72abae"></a><div style="font-family:Times New Roman;font-size:10pt;vertical-align:inherit;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></div><br><div style="line-height:120%;padding-bottom:1.33333333px;text-align:center;font-size:18pt;"><font style="font-family:inherit;font-size:12pt;">&nbsp;</font><hr><font style="font-family:inherit;font-size:18pt;font-weight:bold;">UNITED STATES </font></div><div style="line-height:120%;text-align:center;font-size:18pt;"><font style="font-family:inherit;font-size:18pt;font-weight:bold;">SECURITIES AND EXCHANGE COMMISSION </font></div><div style="line-height:120%;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">WASHINGTON, D.C. 20549 </font></div><div style
="line-height:120%;text-align:left;font-size:4pt;"><font style="font-family:inherit;font-size:4pt;">&nbsp;</font></div><div style="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;border-collapse:collapse;"><tr><td width="242.66666606px"></td></tr><tr><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:242.66666606px;"><div style="text-align:center;font-size:18pt;width:244.66666606px"><font style="font-family:inherit;font-size:18pt;font-weight:bold;text-align:center;">&nbsp;FORM 10-Q</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-align:center;">&nbsp;</font></div></td></tr></table></div></div><div style="line-height:120%;padding-bottom:1.33333333px;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">&nbsp;</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;">(Ma
rk One) </font></div><div style="line-height:120%;text-align:left;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;width:100%;border-collapse:collapse;"><tr><td width="23.999999940000002px"></td><td></td></tr><tr><td style="vertical-align:top;padding:0px;width:23.999999940000002px;"><div style="text-align:left;font-size:10pt;width:25.999999940000002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;font-weight:bold;">[x]</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;font-weight:bold;">QUARTERLY REPORT PURSUANT TO SECTION&nbsp;13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934</font></div></td></tr></table></div></div><div style="line-height:120%;padding-top:11.999999970000001px;text-align:left;text-indent:31.99999992px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;"
>For the Quarterly Period Ended </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;font-weight:bold;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;"> </font></div><div style="line-height:120%;padding-top:11.999999970000001px;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">OR </font></div><div style="line-height:120%;text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">&nbsp;</font><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;width:100%;border-collapse:collapse;"><tr><td width="23.999999940000002px"></td><td></td></tr><tr><td style="vertical-align:top;padding:0px;width:23.999999940000002px;"><div style="text-align:left;font-size:10pt;width:25.999999940000002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;font-weight:bold;">[ ]</font></div></td><td style="vertical-a
lign:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;font-weight:bold;">TRANSITION REPORT PURSUANT TO SECTION&nbsp;13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934</font></div></td></tr></table></div></div><div style="line-height:120%;padding-top:11.999999970000001px;text-align:left;text-indent:31.99999992px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">For the Transition Period From&nbsp;</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;"> To&nbsp;</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font style="font-family:inherit;font-size:10pt;font-weight:bo
ld;"> </font></div><div style="line-height:120%;padding-top:11.999999970000001px;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">COMMISSION FILE NUMBER: 000-22671 </font></div><div style="line-height:120%;text-align:center;font-size:12pt;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td></td><td width="242.66666606px"></td><td></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;height:5.33333332px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:242.66666606px;"><div style="overflow:hidden;height:5.33333332px;font-size:10pt;width:244.66666606px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="o
verflow:hidden;height:5.33333332px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;height:5.33333332px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:242.66666606px;"><div style="overflow:hidden;height:5.33333332px;font-size:10pt;width:244.66666606px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;height:5.33333332px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td colspan="3" style="vertical-align:middle;padding:0px;"><div style="text-align:center;font-size:24pt;"><font style="font-family:inherit;font-size:24pt;background-color:transparent;font-weight:bold;">QUICKLOGIC CORPORATION</font></div></td></tr><tr><td colspan="3" style="vertic
al-align:middle;padding:0px;"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;font-weight:bold;">(Exact name of registrant as specified in its charter)</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;height:10.66666664px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:242.66666606px;"><div style="overflow:hidden;height:10.66666664px;font-size:10pt;width:244.66666606px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;height:10.66666664px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr></table></div><font style="font-family:inherit;font-size:12pt;">&nbsp;</font><div style="padding-top:10px;"><table style="font-fam
ily:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td></td><td width="115.99999971000001px"></td><td></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;font-weight:bold;">DELAWARE</font></div></td><td style="vertical-align:bottom;padding:0px;width:115.99999971000001px;"><div style="text-align:left;font-size:7pt;width:117.99999971000001px"><font style="font-family:inherit;font-size:7pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;font-weight:bold;">77-0188504</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:center;font-size:7pt;"><font style="font-family:inherit;font-size:7pt;font-weight:bold;
">(State or other jurisdiction of</font></div><div style="text-align:center;font-size:7pt;"><font style="font-family:inherit;font-size:7pt;font-weight:bold;">incorporation or organization)</font></div></td><td style="vertical-align:bottom;padding:0px;width:115.99999971000001px;"><div style="text-align:left;font-size:7pt;width:117.99999971000001px"><font style="font-family:inherit;font-size:7pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="text-align:center;font-size:7pt;"><font style="font-family:inherit;font-size:7pt;font-weight:bold;">(I.R.S. Employer</font></div><div style="text-align:center;font-size:7pt;"><font style="font-family:inherit;font-size:7pt;font-weight:bold;">Identification No.)</font></div></td></tr></table></div></div><div style="line-height:120%;padding-top:11.999999970000001px;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">1277 ORLEANS DRIVE SUNNYVALE, CA&nbsp;94089 <
/font></div><div style="line-height:120%;text-align:center;font-size:7pt;"><font style="font-family:inherit;font-size:7pt;font-weight:bold;">(Address of principal executive offices, including Zip Code) </font></div><div style="line-height:120%;padding-top:11.999999970000001px;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">(408)&nbsp;990-4000 </font></div><div style="line-height:120%;text-align:center;font-size:7pt;"><font style="font-family:inherit;font-size:7pt;font-weight:bold;">(Registrant's telephone number, including area code) </font></div><div style="line-height:120%;text-align:left;font-size:4pt;"><font style="font-family:inherit;font-size:4pt;">&nbsp;</font></div><div style="line-height:120%;padding-bottom:1.33333333px;text-align:left;text-indent:29.999999925px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">&nbsp;</font><font style="font-family:inherit;font-size:10pt;">Indicate by check mark whether the registrant (1)&nbsp;ha
s filed all reports required to be filed by Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12&nbsp;months (or for such shorter period that the registrant was required to file such reports), and (2)&nbsp;has been subject to such requirements for the past 90&nbsp;days.&nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;&nbsp;</font><font style="font-family:inherit;font-size:10pt;">[x]</font><font style="font-family:inherit;font-size:10pt;">&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;</font><font style="font-family:inherit;font-size:10pt;text-align:center;">[ ]</font></div><div style="line-height:120%;padding-top:11.999999970000001px;text-align:left;text-indent:31.99999992px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (&sect;232.405 of this chapter) during
 the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).&nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;&nbsp;</font><font style="font-family:inherit;font-size:10pt;text-align:center;">[ ]</font><font style="font-family:inherit;font-size:10pt;">&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;</font><font style="font-family:inherit;font-size:10pt;text-align:center;">[ ]</font></div><div style="line-height:120%;padding-top:11.999999970000001px;text-align:left;text-indent:31.99999992px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer, or a smaller reporting company. See definition of &ldquo;large accelerated filer,&rdquo; &ldquo;accelerated filer&rdquo; and &ldquo;smaller reporting company&rdquo; in Rule 12b-2 of the Exchange Act. </font></div><div style="line-height:120%;text-align:center;font-size:9pt;"><font style="font-family:inher
it;font-size:9pt;">&nbsp;</font><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td width="142.66666631px"></td><td width="9.33333331px"></td><td></td><td width="38.666666570000004px"></td><td width="189.33333286px"></td><td width="7.99999998px"></td><td width="41.33333323px"></td></tr><tr><td style="vertical-align:top;padding:0px;width:142.66666631px;"><div style="text-align:left;font-size:10pt;width:144.66666631px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Large&nbsp;accelerated&nbsp;filer</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.33333331px;"><div style="overflow:hidden;font-size:10pt;width:11.33333331px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:top;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-col
or:transparent;">[ ]</font></div></td><td style="vertical-align:bottom;padding:0px;width:38.666666570000004px;"><div style="overflow:hidden;font-size:10pt;width:40.666666570000004px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:top;padding:0px;width:189.33333286px;"><div style="text-align:left;font-size:10pt;width:191.33333286px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Accelerated Filer</font></div></td><td style="vertical-align:bottom;padding:0px;width:7.99999998px;"><div style="overflow:hidden;font-size:10pt;width:9.99999998px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:top;padding:0px;width:41.33333323px;"><div style="text-align:left;font-size:10pt;width:43.33333323px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">[x]</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:142.66666631px;"><div style="ov
erflow:hidden;height:7.99999998px;font-size:10pt;width:144.66666631px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.33333331px;"><div style="overflow:hidden;height:7.99999998px;font-size:10pt;width:11.33333331px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;height:7.99999998px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:38.666666570000004px;"><div style="overflow:hidden;height:7.99999998px;font-size:10pt;width:40.666666570000004px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:189.33333286px;"><div style="overflow:hidden;height:7.99999998px;font-size:10pt;width:191.33333286px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><t
d style="vertical-align:bottom;padding:0px;width:7.99999998px;"><div style="overflow:hidden;height:7.99999998px;font-size:10pt;width:9.99999998px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:41.33333323px;"><div style="overflow:hidden;height:7.99999998px;font-size:10pt;width:43.33333323px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:top;padding:0px;width:142.66666631px;"><div style="text-align:left;font-size:10pt;width:144.66666631px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Non-accelerated filer</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.33333331px;"><div style="overflow:hidden;font-size:10pt;width:11.33333331px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:top;padding:0px;"><div style="vertical-align:top;font-size:10pt;"><font style="font-family
:inherit;font-size:10pt;vertical-align:top;">[ ]   </font><font style="font-family:inherit;font-size:10pt;vertical-align:top;">(Do not check if a smaller reporting company)</font></div></td><td style="vertical-align:bottom;padding:0px;width:38.666666570000004px;"><div style="overflow:hidden;font-size:10pt;width:40.666666570000004px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:top;padding:0px;width:189.33333286px;"><div style="text-align:left;font-size:10pt;width:191.33333286px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Smaller&nbsp;Reporting&nbsp;Company</font></div></td><td style="vertical-align:bottom;padding:0px;width:7.99999998px;"><div style="overflow:hidden;font-size:10pt;width:9.99999998px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:top;padding:0px;width:41.33333323px;"><div style="text-align:left;font-size:10pt;width:43.33333323px"><font style="font-fam
ily:inherit;font-size:10pt;background-color:transparent;">[ ]</font></div></td></tr></table></div></div><div style="line-height:120%;padding-top:11.999999970000001px;text-align:left;text-indent:31.99999992px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act).&nbsp;&nbsp;&nbsp;&nbsp; Yes&nbsp;&nbsp;</font><font style="font-family:inherit;font-size:10pt;">[ ]</font><font style="font-family:inherit;font-size:10pt;">&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;</font><font style="font-family:inherit;font-size:10pt;">[x]</font><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;padding-top:11.999999970000001px;text-align:left;text-indent:31.99999992px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">As of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">August&nbsp;10, 2010</
font><font style="font-family:inherit;font-size:10pt;">, the registrant had outstanding </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">35,922,788</font><font style="font-family:inherit;font-size:10pt;"> shares of common stock, par value $0.001. </font></div><div style="line-height:120%;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">&nbsp;</font><hr></div><hr style="page-break-after:always"><a name="s1968B860A93AB3D7546DFECC9DE19266"></a><div style="font-family:Times New Roman;font-size:10pt;vertical-align:inherit;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></div><br><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;
">QUICKLOGIC CORPORATION </font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">FORM 10-Q </font></div><div style="line-height:120%;text-align:center;"><font style="font-family:Times New Roman;color:#000000;font-size:10pt;font-weight:bold;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;"> </font></div><div style="line-height:120%;text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td width="70.66666649000001px"></td><td></td><td width="5.33333332px"></td><td width="43.999999890000005px"
></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:70.66666649000001px;"><div style="overflow:hidden;font-size:10pt;width:72.66666649000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:43.999999890000005px;"><div style="text-align:right;font-size:10pt;width:45.999999890000005px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;font-weight:bold;text-decoration:none;">Page</font></div></td></tr><tr><td colspan="2" style="vertical-align:bottom;padding:0px;"><div style="font-weight:bold;"><a sty
le="text-decoration:underline;color:#0000FF;font-family:Times New Roman;font-size:10pt;font-weight:bold;text-align:left;vertical-align:bottom;" href="#s5AF36C7B2DFBAA89DAA9FECCFF6C829D"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Part I - Financial Information</font></a></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="text-align:right;width:45.999999890000005px"><a style="text-decoration:underline;color:#0000FF;text-align:right;" href="#s5AF36C7B2DFBAA89DAA9FECCFF6C829D">3</a></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:70.66666649000001px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:72.66666649000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td
 style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:45.999999890000005px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:70.66666649000001px;"><div style="text-align:left;font-size:10pt;width:72.66666649000001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;font-weight:bold;">Item 1.</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="font-weight:bold;"><a 
style="text-decoration:underline;color:#0000FF;font-family:Times New Roman;font-size:10pt;font-weight:bold;text-align:left;vertical-align:bottom;" href="#sC7366B56C8F6574D9930FECD2D668EAB"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Financial Statements</font></a></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="text-align:right;width:45.999999890000005px"><a style="text-decoration:underline;color:#0000FF;text-align:right;" href="#sC7366B56C8F6574D9930FECD2D668EAB">3</a></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:70.66666649000001px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:72.66666649000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style=
"vertical-align:bottom;padding:0px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:45.999999890000005px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:70.66666649000001px;"><div style="overflow:hidden;font-size:10pt;width:72.66666649000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="font-weight:bold;"><a style="text-decoration:underline;color:#0000FF;font-fa
mily:Times New Roman;font-size:10pt;font-weight:bold;text-align:left;vertical-align:bottom;" href="#s2D3F7E567B588537B27FFECEA33846A4"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Condensed Unaudited Consolidated Statements of Operations for the three and six months ended July 4, 2010 and June 28, 2009</font></a></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="text-align:right;width:45.999999890000005px"><a style="text-decoration:underline;color:#0000FF;text-align:right;" href="#s2D3F7E567B588537B27FFECEA33846A4">3</a></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:70.66666649000001px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:72.66666649000001px"><font style="font-family:inherit;fo
nt-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:45.999999890000005px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:70.66666649000001px;"><div style="overflow:hidden;font-size:10pt;width:72.66666649000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="font-weight:bold;"><a style
="text-decoration:underline;color:#0000FF;font-family:Times New Roman;font-size:10pt;font-weight:bold;text-align:left;vertical-align:bottom;" href="#s35FCC22ABDA7E37633ADFECF24A7873A"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Condensed Unaudited Consolidated Balance Sheets as of July 4, 2010 and January 3, 2010</font></a></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="text-align:right;width:45.999999890000005px"><a style="text-decoration:underline;color:#0000FF;text-align:right;" href="#s35FCC22ABDA7E37633ADFECF24A7873A">4</a></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:70.66666649000001px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:72.66666649000001px"><font style="font-famil
y:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:45.999999890000005px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:70.66666649000001px;"><div style="overflow:hidden;font-size:10pt;width:72.66666649000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="font-weight:bol
d;"><a style="text-decoration:underline;color:#0000FF;font-family:Times New Roman;font-size:10pt;font-weight:bold;text-align:left;vertical-align:bottom;" href="#sF9A2E38AB3331D024DC9FECF43F296EB"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Condensed Unaudited Consolidated Statements of Cash Flows for the six months ended July 4, 2010 and June 28, 2009</font></a></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="text-align:right;width:45.999999890000005px"><a style="text-decoration:underline;color:#0000FF;text-align:right;" href="#sF9A2E38AB3331D024DC9FECF43F296EB">5</a></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:70.66666649000001px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:72.66
666649000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:45.999999890000005px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:70.66666649000001px;"><div style="overflow:hidden;font-size:10pt;width:72.66666649000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;pa
dding:0px;"><div style="font-weight:bold;"><a style="text-decoration:underline;color:#0000FF;font-family:Times New Roman;font-size:10pt;font-weight:bold;text-align:left;vertical-align:bottom;" href="#s79A524F44F4B0C6A9640FECF664FB152"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Condensed Unaudited Consolidated Statements of Comprehensive Income (Loss) for the six months ended July 4, 2010 and June 28, 2009</font></a></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="text-align:right;width:45.999999890000005px"><a style="text-decoration:underline;color:#0000FF;text-align:right;" href="#s79A524F44F4B0C6A9640FECF664FB152">6</a></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:70.66666649000001px;"><div style="overflow:hidde
n;height:13.333333300000001px;font-size:10pt;width:72.66666649000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:45.999999890000005px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:70.66666649000001px;"><div style="overflow:hidden;font-size:10pt;width:72.66666649000001px"><font style="font-family:inherit;font-size:10pt;">&nb
sp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="font-weight:bold;"><a style="text-decoration:underline;color:#0000FF;font-family:Times New Roman;font-size:10pt;font-weight:bold;text-align:left;vertical-align:bottom;" href="#s5970DCFFDD23A76506AEFED259669574"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Notes to Condensed Unaudited Consolidated Financial Statements</font></a></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="text-align:right;width:45.999999890000005px"><a style="text-decoration:underline;color:#0000FF;text-align:right;" href="#s5970DCFFDD23A76506AEFED259669574">7</a></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:70.66666649000001px;"><div style="overflow:hidden;height:13.
333333300000001px;font-size:10pt;width:72.66666649000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:45.999999890000005px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:70.66666649000001px;"><div style="text-align:left;font-size:10pt;width:72.66666649000001px"><font style="font-family:inherit;font-size:10pt;background-color:
transparent;font-weight:bold;">Item 2.</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="font-weight:bold;"><a style="text-decoration:underline;color:#0000FF;font-family:Times New Roman;font-size:10pt;font-weight:bold;text-align:left;vertical-align:bottom;" href="#sD0E3EB9C287DD3A2728CFEE1A4A2838A"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Management's Discussion and Analysis of Financial Condition and Results of Operations</font></a></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="text-align:right;width:45.999999890000005px"><a style="text-decoration:underline;color:#0000FF;text-align:right;" href="#sD0E3EB9C287DD3A2728CFEE1A4A2838A">19</a></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:7
0.66666649000001px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:72.66666649000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:45.999999890000005px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:70.66666649000001px;"><div style="text-align:left;font-size:10pt;width:72.66666649000001px"><font 
style="font-family:inherit;font-size:10pt;background-color:transparent;font-weight:bold;">Item 3.</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="font-weight:bold;"><a style="text-decoration:underline;color:#0000FF;font-family:Times New Roman;font-size:10pt;font-weight:bold;text-align:left;vertical-align:bottom;" href="#sCC904FD7B7EEA990F81CFEE31C67EE8C"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Quantitative and Qualitative Disclosures about Market Risk</font></a></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="text-align:right;width:45.999999890000005px"><a style="text-decoration:underline;color:#0000FF;text-align:right;" href="#sCC904FD7B7EEA990F81CFEE31C67EE8C">30</a></div></td></tr><tr><td style="vertical-
align:bottom;padding:0px;width:70.66666649000001px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:72.66666649000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:45.999999890000005px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:70.66666649000001px;"><div style="text-align:left;font-size:10pt;w
idth:72.66666649000001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;font-weight:bold;">Item 4.</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="font-weight:bold;"><a style="text-decoration:underline;color:#0000FF;font-family:Times New Roman;font-size:10pt;font-weight:bold;text-align:left;vertical-align:bottom;" href="#s4F677717A77B76747414FEE3DF442E60"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Controls and Procedures</font></a></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="text-align:right;width:45.999999890000005px"><a style="text-decoration:underline;color:#0000FF;text-align:right;" href="#s4F677717A77B76747414FEE3DF442E60">30</a></div></td></tr><tr><td style="vertical-ali
gn:bottom;padding:0px;width:70.66666649000001px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:72.66666649000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:45.999999890000005px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td colspan="2" style="vertical-align:bottom;padding:0px;"><div style="font-weight:bold;"><a style="text-decoration:unde
rline;color:#0000FF;font-family:Times New Roman;font-size:10pt;font-weight:bold;text-align:left;vertical-align:bottom;" href="#sE7CDE9918A5F42350964FEE428514472"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Part II - Other Information</font></a></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="text-align:right;width:45.999999890000005px"><a style="text-decoration:underline;color:#0000FF;text-align:right;" href="#sE7CDE9918A5F42350964FEE428514472">31</a></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:70.66666649000001px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:72.66666649000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bot
tom;padding:0px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:45.999999890000005px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:70.66666649000001px;"><div style="text-align:left;font-size:10pt;width:72.66666649000001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;font-weight:bold;">Item 1.</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="font-weight:bold;"><a style="text-decoration:und
erline;color:#0000FF;font-family:Times New Roman;font-size:10pt;font-weight:bold;text-align:left;vertical-align:bottom;" href="#sB33E7735AD45DB011E85FEE4799FB4D2"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Legal Proceedings</font></a></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="text-align:right;width:45.999999890000005px"><a style="text-decoration:underline;color:#0000FF;text-align:right;" href="#sB33E7735AD45DB011E85FEE4799FB4D2">31</a></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:70.66666649000001px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:72.66666649000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;paddi
ng:0px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:45.999999890000005px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:70.66666649000001px;"><div style="text-align:left;font-size:10pt;width:72.66666649000001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;font-weight:bold;">Item 1A.</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="font-weight:bold;"><a style="text-decoration:underline;c
olor:#0000FF;font-family:Times New Roman;font-size:10pt;font-weight:bold;text-align:left;vertical-align:bottom;" href="#s2F14985FE842A2381EEEFEE4B091F2BB"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Risk Factors</font></a></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="text-align:right;width:45.999999890000005px"><a style="text-decoration:underline;color:#0000FF;text-align:right;" href="#s2F14985FE842A2381EEEFEE4B091F2BB">31</a></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:70.66666649000001px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:72.66666649000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div
 style="overflow:hidden;height:13.333333300000001px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:45.999999890000005px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:70.66666649000001px;"><div style="text-align:left;font-size:10pt;width:72.66666649000001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;font-weight:bold;">Item 6.</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="font-weight:bold;"><a style="text-decoration:underline;color:#0000FF;f
ont-family:Times New Roman;font-size:10pt;font-weight:bold;text-align:left;vertical-align:bottom;" href="#sED510649818FCB21B839FEE4D5672EB9"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Exhibits</font></a></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="text-align:right;width:45.999999890000005px"><a style="text-decoration:underline;color:#0000FF;text-align:right;" href="#sED510649818FCB21B839FEE4D5672EB9">33</a></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:70.66666649000001px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:72.66666649000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="overflow:h
idden;height:13.333333300000001px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="overflow:hidden;height:13.333333300000001px;font-size:10pt;width:45.999999890000005px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:70.66666649000001px;"><div style="font-weight:bold;width:72.66666649000001px"><a style="text-decoration:underline;color:#0000FF;font-family:Times New Roman;font-size:10pt;font-weight:bold;text-align:left;vertical-align:bottom;" href="#s0D5CE2B6F1ABA961AF10FEE56AE58497"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Signatures</font></a></
div></td><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="text-align:right;width:45.999999890000005px"><a style="text-decoration:underline;color:#0000FF;text-align:right;" href="#s0D5CE2B6F1ABA961AF10FEE56AE58497">34</a></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><br><div styl
e="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">2</font></div></div><hr style="page-break-after:always"><a name="s5AF36C7B2DFBAA89DAA9FECCFF6C829D"></a><div style="font-family:Times New Roman;font-size:10pt;vertical-align:inherit;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></div><br><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">PART&nbsp;I. Financial Information</font></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><a name="sC7366B56C8F6574D9930FECD2D668EAB"></a><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Item 1. Fina
ncial Statements</font></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><a name="s2D3F7E567B588537B27FFECEA33846A4"></a><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">QUICKLOGIC CORPORATION</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">(in thousands, except per share amounts)</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-rig
ht:auto;width:100%;border-collapse:collapse;"><tr><td></td><td width="9.3999999765px"></td><td width="66.13333316800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="66.13333316800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="66.13333316800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="66.13333316800001px"></td><td width="4.4666666555px"></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="7" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:170.66666624px;"><div style="text-align:center;font-size:8pt;width:174.66666624px"><font style="font-family:inherit;font-size:8pt;background-color:transp
arent;font-weight:bold;">Three Months Ended</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="7" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:170.66666624px;"><div style="text-align:center;font-size:8pt;width:174.66666624px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Six Months Ended</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="f
ont-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, 2010</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">June&nbsp;28, 2009</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><di
v style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, 2010</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">June&nbsp;28, 2009</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:b
ottom;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:10pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:10pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:10pt;width
:83.99999980000001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:10pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Revenue</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inh
erit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">6,479</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertica
l-align:bottom;background-color:#cceeff;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,911</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:6
6.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">11,908</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-siz
e:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">7,463</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Cost of revenue</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,553</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="ve
rtical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,589</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;fo
nt-size:10pt;background-color:transparent;">4,669</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">3,408</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-s
ize:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Gross profit</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">3,926</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:75.53
33331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,322</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">7,239</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;bo
rder-top:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">4,055</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"
><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Operating expenses:</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:1pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:1pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style
="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:1pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:1pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Re
search and development</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,533</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,877</f
ont></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">3,593</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0
px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">3,489</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Selling, general and administrative</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:75.5333331445px;"><div style="text-al
ign:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,518</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,709</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom
;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">4,853</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;backgr
ound-color:transparent;">5,352</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Loss from operations</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(125</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit
;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(3,264</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-fami
ly:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(1,207</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right
;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(4,786</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Gain on sale of TowerJazz Semiconductor Ltd. Shares</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.46
66666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:75.5333331445px;"><
div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">993</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td s
tyle="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Interest expense</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(27</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;backgr
ound-color:#cceeff;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(23</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(45</font></div></td><td style="vertical-align:bottom;background-color:#cce
eff;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(47</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;fo
nt-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Interest income and other, net</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(50</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;fon
t-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">45</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(71</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555p
x"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(1</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Loss before
 income taxes</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(202</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transp
arent;">(3,242</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(330</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td
><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(4,834</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Provision for (benefit from) income taxes</font></div></td><td colspan="2" style="vertical-a
lign:bottom;border-bottom:1px solid #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">13</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(15</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;pa
dding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">28</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"
><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(11</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Net loss</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;
width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(215</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:9.3999999765
px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(3,227</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cce
eff;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(358</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font>
</div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(4,823</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;bac
kground-color:transparent;">Net loss per share:</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:1pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:1pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-al
ign:bottom;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:1pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:1pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Basic</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px 
double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(0.01</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style=
"vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(0.11</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-
family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(0.01</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="over
flow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(0.16</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;
padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Diluted</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(0.01</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;padding:0
px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(0.11</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div styl
e="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(0.01</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;
width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(0.16</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-
family:inherit;font-size:10pt;background-color:transparent;">Weighted average shares:</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:1pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:1pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-s
ize:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:1pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:1pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-si
ze:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Basic</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">35,383</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="fo
nt-family:inherit;font-size:10pt;background-color:transparent;">30,081</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">35,244</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div
></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">29,994</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Diluted</font></div></td><td colspan="2" style="vertical-align:
bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">35,383</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:
transparent;">30,081</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">35,244</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-
family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">29,994</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-heig
ht:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">See accompanying Notes to Condensed Unaudited Consolidated Financial Statements.</font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">3</font></div></div><hr style="page-break-after:always"><a name="s35FCC22ABDA7E37633ADFECF24A7873A"></a><div style="font-family:Times New Roman;font-size:10pt;vertical-align:inherit;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></div><br><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">QUICKLOGIC CORPORATION</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-fami
ly:inherit;font-size:10pt;font-weight:bold;">CONDENSED UNAUDITED CONSOLIDATED BALANCE SHEETS</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">(in thousands, except par value amount)</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td></td><td width="9.3999999765px"></td><td width="92.79999976800002px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="92.79999976800002px"></td><td width="4.4666666555px"></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;b
ackground-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:106.66666640000001px;"><div style="text-align:center;font-size:8pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, 2010</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:106.66666640000001px;"><div style="text-align:center;font-size:8pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">January&nbsp;3, 2010</font></div></td></tr><tr><td style="vertical-align:bottom;background-color
:#cceeff;padding:0px;"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;font-weight:bold;">ASSETS</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:106.66666640000001px;"><div style="text-align:right;font-size:1pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:106.66666640000001px;"><div style="text-align:right;font-size:1pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td></tr><tr
><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Current assets:</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:106.66666640000001px;"><div style="text-align:right;font-size:1pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:106.66666640000001px;"><div style="text-align:right;font-size:1pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;p
adding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Cash and cash equivalents</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">17,837</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;widt
h:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">18,195</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:19.999999950000003px;tex
t-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Short-term investment in TowerJazz Semiconductor Ltd.</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">889</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><f
ont style="font-family:inherit;font-size:10pt;background-color:transparent;">868</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Accounts receivable, net of allowances for doubtful accounts of $10</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">3,293</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;w
idth:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,457</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;
font-size:10pt;background-color:transparent;">Inventories</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,223</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,119</font></div></td><td
 style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Other current assets</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,064</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cc
eeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">536</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:35.99999991px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Total current assets</font></div></td><td colspan="2" style="vertical-align:bottom;border-top:1px solid #000000
;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">25,306</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:tran
sparent;">24,175</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Property and equipment, net</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,676</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;
</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,693</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Investment in TowerJazz Semiconductor Ltd.</font></div></td><td c
olspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">437</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="pad
ding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Other assets</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">196</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-alig
n:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">296</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">TOTAL ASSETS</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><di
v style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">28,178</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding
- -left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">27,601</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:106.66666640000001px;"><div style="text-align:right;font-size:10pt;width:110.666666
40000001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:106.66666640000001px;"><div style="text-align:right;font-size:10pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;font-weight:bold;">LIABILITIES AND STOCKHOLDERS' EQUITY</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:106.66666640000001px;"><div style="text-align:r
ight;font-size:1pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:106.66666640000001px;"><div style="text-align:right;font-size:1pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Current liabilities:</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:106.66666640000001px;"><div style="text-align:right;
font-size:1pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:106.66666640000001px;"><div style="text-align:right;font-size:1pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Revolving line of credit</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="te
xt-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,000</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div
></td><td style="vertical-align:bottom;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,000</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Trade payables</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,123</font></div></td><td style="vertical-al
ign:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,721</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style=
"padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Accrued liabilities</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,006</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002
px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,108</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Current portion of debt and capital lease obligations</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">397</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0
px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">249</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:
0px;"><div style="padding-left:35.99999991px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Total current liabilities</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">5,526</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #0000
00;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">6,078</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Long-term liabilities:</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:106.66666640000001px;"><div style="text-align:right;font-size:1pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#
cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:106.66666640000001px;"><div style="text-align:right;font-size:1pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Capital lease obligations, less current portion</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">207</font></div><
/td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">264</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;
font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Other long-term liabilities</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">116</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px
 solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:35.99999991px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Total liabilities</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">5,849</font></div></td><td sty
le="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">6,342</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-col
or:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Commitments and contingencies (see Notes 12 and 13)</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:106.66666640000001px;"><div style="text-align:right;font-size:1pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:106.66666640000001px;"><div style="overflow:hidden;font-size:10pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr
><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Stockholders' equity:</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:106.66666640000001px;"><div style="text-align:right;font-size:1pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:106.66666640000001px;"><div style="overflow:hidden;font-size:10pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div styl
e="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Preferred stock, $0.001 par value; 10,000 shares authorized; no shares issued and outstanding</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="verti
cal-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Common stock, $0.001 par value; 100,000 shares authorized; 35,571 and 35,042 shares issued and outstanding, respectively</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;fon
t-size:10pt;background-color:transparent;">36</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">35</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div
 style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Additional paid-in capital</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">179,614</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#
cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">177,862</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Accumulated other comprehensive income</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">805</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.
4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,130</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-
size:10pt;background-color:transparent;">Accumulated deficit</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(158,126</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width
:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(157,768</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:35.99999991px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Total stockholders' equity</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">22,329</font></div></td><t
d style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">21,259</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;backgrou
nd-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">28,178</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;
">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">27,601</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;wi
dth:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">See accompanying Notes to Condensed Unaudited Consolidated Financial Statements.</font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">4</font></div></div><hr style="page-break-after:always"><a name="sF9A2E38AB3331D024DC9FECF43F296EB"></a><div style="font-family:Times New Roman;font-size:10pt;vertical-align:inherit;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a><font style="font-family:inherit;font-size:10pt;">&nbsp;</
font></div></div><br><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">QUICKLOGIC CORPORATION</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">(in thousands)</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">&nbsp;</font></div><div style="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td></td><td width="9.3999999765px"></td><td width="92.79999976800002px"></td><td width="4.4666666555px"></td><td
 width="10.66666664px"></td><td width="9.3999999765px"></td><td width="92.79999976800002px"></td><td width="4.4666666555px"></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="7" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:223.99999944px;"><div style="text-align:center;font-size:8pt;width:227.99999944px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Six Months Ended</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:106.66666640000001px;"><d
iv style="text-align:center;font-size:8pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, 2010</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:106.66666640000001px;"><div style="text-align:center;font-size:8pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">June&nbsp;28, 2009</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:tr
ansparent;">Cash flows from operating activities:</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:106.66666640000001px;"><div style="text-align:right;font-size:1pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:106.66666640000001px;"><div style="text-align:right;font-size:1pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10p
t;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Net loss</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(358</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align
:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(4,823</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Adjustments to reconcile net loss to net cash used for operating activities:</font></div></td><td colspan="3" style="vertic
al-align:bottom;background-color:#cceeff;padding:0px;width:106.66666640000001px;"><div style="text-align:right;font-size:1pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:106.66666640000001px;"><div style="text-align:right;font-size:1pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:35.99999991px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Depreciation and amo
rtization</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">582</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">914</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.46
66666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:35.99999991px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Stock-based compensation</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,285</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text
- -align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">951</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:35.99999991px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Utilization of wafer credits from TowerJazz Semiconductor Ltd.</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;">
<div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">190</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">213</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;"
>&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:35.99999991px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Write-down of inventories</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">73</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:tran
sparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">236</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:35.99999991px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Gain on TowerJazz Semiconductor Ltd. Shares</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-col
or:transparent;">(993</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px
;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of equipment</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-colo
r:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">13</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:35.99999991px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Changes in assets and liabilities:</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:106.66666640000001px;"><div style="text-align:right;font-size:1pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;
"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:106.66666640000001px;"><div style="text-align:right;font-size:1pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:51.99999987px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Accounts receivable</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(836</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;w
idth:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">278</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:51.99999987px;text-align:left;font-siz
e:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Inventories</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(177</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:
transparent;">(378</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:51.99999987px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Other assets</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(618</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt
;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">228</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:51.99999987px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Trade payables</font></div></td><td colspan="2" style="vertical
- -align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(765</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">43</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.466666655
5px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:51.99999987px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Accrued liabilities</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(96</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.6666
6664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">43</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:51.99999987px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Deferred income on shipments to distributors</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="f
ont-family:inherit;font-size:10pt;background-color:transparent;">(6</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(271</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr><tr><td style="vertical-align:b
ottom;background-color:#cceeff;padding:0px;"><div style="padding-left:51.99999987px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Other long-term liabilities</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">116</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</fon
t></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:67.99999983000001px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Net cash used for operating activities</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.
19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(1,602</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(2,553</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-siz
e:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Cash flows from investing activities:</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:106.66666640000001px;"><div style="text-align:right;font-size:1pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:106.66666640000001px;"><div style="text-align:right;font-size:1
pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Capital expenditures for property and equipment</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(147</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><f
ont style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(46</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Proceeds from sale of fixed assets</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px">
<font style="font-family:inherit;font-size:10pt;background-color:transparent;">32</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10
pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Proceeds from sale of TowerJazz Semiconductor Ltd. Shares</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,084</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;<
/font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:67.99999983000001px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Net cash provided by (used for) investing activities</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-si
ze:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">969</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(46</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;borde
r-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Cash flows from financing activities:</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:106.66666640000001px;"><div style="text-align:right;font-size:1pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:106.66666640000001p
x;"><div style="text-align:right;font-size:1pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Payment of debt and capital lease obligations</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(4,193</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="ver
tical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(2,517</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Proceeds from debt obligations</font></div></td><td colspan="2"
 style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">4,000</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,000</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><
font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Proceeds from issuance of common stock</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">468</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;
"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">190</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:67.99999983000001px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Net cash provided by (used for) financing activities</font></div></td><td colspan="2" style="vertical-ali
gn:bottom;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">275</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(327</font></div></td><td style="vertica
l-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Net decrease in cash and cash equivalents</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(358</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-
size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(2,926</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Cash and cash equi
valents at beginning of period</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">18,195</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">19,376</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.46
66666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Cash and cash equivalents at end of period</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;
background-color:transparent;">17,837</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:92.7999997680
0002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">16,450</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;height:18.66666662px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:106.66666640000001px;"><div style="overflow:hidden;height:18.66666662px;font-size:10pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;height:18.6666666
2px;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:106.66666640000001px;"><div style="overflow:hidden;height:18.66666662px;font-size:10pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Supplemental schedule&nbsp;of non-cash investing and financing activities :</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:106.66666640000001px;"><div style="text-align:right;font-size:1pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width
:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:106.66666640000001px;"><div style="text-align:right;font-size:1pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Capital lease obligation</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px
;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">604</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-si
ze:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">632</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Purchase of equipment included in accounts payable</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px sol
id #000000;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">68</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-c
olor:#cceeff;border-bottom:1px solid #000000;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">189</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">See accompanying Notes to Condensed Unaudited Consolidated Financial Statements</font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">5</font></div></div><hr style="pag
e-break-after:always"><a name="s79A524F44F4B0C6A9640FECF664FB152"></a><div style="font-family:Times New Roman;font-size:10pt;vertical-align:inherit;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></div><br><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">QUICKLOGIC CORPORATION</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">(in thousands)</font></div><div style="line-height:120%;text-align:center;fo
nt-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">&nbsp;</font></div><div style="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td></td><td width="9.3999999765px"></td><td width="66.13333316800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="66.13333316800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="66.13333316800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="66.13333316800001px"></td><td width="4.4666666555px"></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;<
/font></div></td><td colspan="7" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:170.66666624px;"><div style="text-align:center;font-size:8pt;width:174.66666624px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Three Months Ended</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="7" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:170.66666624px;"><div style="text-align:center;font-size:8pt;width:174.66666624px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Six Months Ended</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weig
ht:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, 2010</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">June&nbsp;28, 2009</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.666666
64px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, 2010</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font
- -weight:bold;">June&nbsp;28, 2009</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Net loss</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(215</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)
</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(3,227</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="ver
tical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(358</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-colo
r:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(4,823</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:l
eft;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Other comprehensive gain (loss), net of tax:</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:1pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:1pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style
="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:1pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:1pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Un
realized gain (loss) on available-for-sale investments</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(200</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:75.5333331445px;"><
div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">134</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(325</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom
:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">255</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-alig
n:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Total comprehensive Income (loss)</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(415</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;padding:0
px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(3,093</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font
></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(683</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font
 style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(4,568</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;paddi
ng-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">See accompanying Notes to Condensed Unaudited Consolidated Financial Statements.</font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">6</font></div></div><hr style="page-break-after:always"><a name="s5970DCFFDD23A76506AEFED259669574"></a><div style="font-family:Times New Roman;font-size:10pt;vertical-align:inherit;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a><font style="font-family:inherit;f
ont-size:10pt;">&nbsp;</font></div></div><br><div style="line-height:120%;padding-right:0px;padding-bottom:0px;padding-top:0px;padding-left:0px;text-align:center;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;font-weight:bold;">QUICKLOGIC CORPORATION</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;font-weight:bold;">NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS</font></div><div style="line-height:120%;text-align:center;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;font-weight:bold;">&nbsp;</font></div><a name="s537DBF0CE7489D4B2C29FED922112556"></a><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Note 1 &mdash; The Company and Basis of Presentation</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="fo
nt-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">QuickLogic Corporation, referenced herein as QuickLogic or the Company, was founded in 1988 and reincorporated in Delaware in 1999. The Company develops and markets low power programmable solutions that enable customers to add differentiated features and capabilities to their mobile, consumer and industrial products. The Company is a fabless semiconductor company that designs, markets and supports Customer Specific Standard Products, or CSSPs, Field Programmable Gate Arrays, or FPGAs, application solutions, associated design software and programming hardware.</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font st
yle="font-family:inherit;font-size:10pt;">The accompanying interim consolidated financial statements are unaudited. In the opinion of management, these statements have been prepared in accordance with generally accepted accounting principles, or GAAP, and include all adjustments, consisting only of normal recurring adjustments, necessary to provide a fair statement of results for the interim periods presented. The Company recommends that these consolidated financial statements be read in conjunction with the Company's Form&nbsp;10-K for the year ended </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">January&nbsp;3, 2010</font><font style="font-family:inherit;font-size:10pt;">. Operating results for the three and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">six</font><font style="font-family:inherit;font-size:10pt;"> months ended </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt
;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;"> are not necessarily indicative of the results that may be expected for the full year. Included in the second quarter of 2010 is an out of period adjustment in the amount of $78,000 that increased the loss in the quarter.</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">QuickLogic's fiscal year ends on the Sunday closest to December&nbsp;31. QuickLogic's </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> fiscal quarter for </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="fon
t-family:inherit;font-size:10pt;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2,009</font><font style="font-family:inherit;font-size:10pt;"> ended Sunday, </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">June&nbsp;28, 2009</font><font style="font-family:inherit;font-size:10pt;">, respectively.</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Liquidity</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><fon
t style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We have financed our operations and capital investments through sales of common stock, private equity investments, capital and operating leases and a bank line of credit. As of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;">, our principal sources of liquidity consisted of our cash and cash equivalents of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$17.8 million</font><font style="font-family:inherit;font-size:10pt;">, available credit under our revolving line of credit with Silicon Valley Bank of $4.0&nbsp;million, which expires June&nbsp;29, 2011, and our investment in TowerJazz Semiconductor Ltd. (formerly known as Tower Semic
onductor Ltd.) with a fair value of approximately </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$0.9 million</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company anticipates that its existing cash resources will fund operations, finance purchases of capital equipment and provide adequate working capital for the next twelve months. The Company's liquidity is affected by many factors including, among others, the level of revenue and gross profit as a result of the cyclicality of the semiconductor industry and the rate of recovery, if any, from the global economic recession, the conversion of design opportunities into revenue, market acceptance of existing
 and new products including CSSPs based on our ArcticLink&trade; and PolarPro</font><font style="font-family:inherit;font-size:10pt;"><sup>&reg;</sup></font><font style="font-family:inherit;font-size:10pt;"> solution platforms, fluctuations in revenue as a result of product end-of-life, fluctuations in revenue as a result of the stage in the product life cycle of our customers' products, costs of securing access to and availability of adequate manufacturing capacity, levels of inventories, wafer purchase commitments, customer credit terms, the amount and timing of research and development expenditures, the timing of new product introductions, production volumes, product quality, sales and marketing efforts, the value and liquidity of our investment portfolio, the amount and financing arrangements for purchases of capital equipment, changes in operating assets and liabilities, the ability to obtain or renew debt financing and to remain in compliance with the covenants of existing credit facilities, the abilit
y to raise funds from the sale of shares of TowerJazz Semiconductor Ltd., or TowerJazz, the equity in the Company, the issuance and exercise of stock options and participation in the Company's employee stock purchase plan, and other factors related to the uncertainties of the industry and global economics. Accordingly, there can be no assurance that events in the future will not require the Company to seek additional capital or, if so required, that such capital will be available on terms acceptable to the Company.</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Principles of Consolidation</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&
nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The consolidated financial statements include the accounts of QuickLogic Corporation and its wholly owned subsidiaries, QuickLogic International,&nbsp;Inc., QuickLogic Canada Company, QuickLogic Kabushiki Kaisha and QuickLogic Software (India) Private Ltd.  All inter-company transactions and balances have been eliminated in the accompanying financial statements.</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Foreign Currency</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-
height:120%;text-align:left;font-size:10pt;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">The functional currency of the Company's non-U.S. operations is the U.S. dollar. Accordingly, all monetary assets and liabilities of these foreign operations are translated into U.S. dollars at current period-end exchange rates and non-monetary assets and related elements of expense are translated using historical exchange rates. Income and expense elements are </font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">7</font></div></div><hr style="page-break-after:always"><div style="vertical-align:inherit;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-si
ze:10pt;font-weight:bold;">QUICKLOGIC CORPORATION</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued) </font></div></div><br><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> translated to U.S. dollars using average exchange rates in effect during the period. Gains and losses from the foreign currency transactions of these subsidiaries are recorded as interest income and other, net in the statement of operations.</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Uses of Estimates</font><
/div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of these consolidated financial statements in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates, particularly in relation to revenue recognition, the allowance for doubtful accounts, sales returns, valuation of investments, valuation of long-lived assets, valuation of inventories including identification of excess quantities, market value and obsolescence, measurement of stock-based compensation awards, accounting for income taxes and estimating accrued liabilities.</font>
</div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Concentration of Risk</font></div><div style="line-height:120%;padding-left:13.333333300000001px;text-align:left;text-indent:-14.666666630000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company's accounts receivable are denominated in U.S. dollars and are derived primarily from sales to customers located in North America, Europe and Asia Pacific. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. See Note 11 for information regarding concentratio
ns associated with accounts receivable. The Company's investment in TowerJazz is subject to equity risk. See Note 4 for information regarding the Company's investment in TowerJazz.</font></div><div style="line-height:120%;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><a name="sFCF4EC359A14C3E84F3EFED9D374FC50"></a><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Note&nbsp;2 &mdash; Significant Accounting Policies</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">There have been no material changes in the Company's significant accounting policies for the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">s
econd</font><font style="font-family:inherit;font-size:10pt;"> quarter of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> from its disclosure in the Annual Report on Form 10-K for the year ended </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">January&nbsp;3, 2010</font><font style="font-family:inherit;font-size:10pt;">, except as described below. For a discussion of the significant accounting policies, please see the Annual Report on Form 10-K for the fiscal year ended </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">January&nbsp;3, 2010</font><font style="font-family:inherit;font-size:10pt;">, filed with the Securities Exchange Commission, or SEC, on </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">March&nbsp;12, 2010</font><font style="font-fa
mily:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">New Accounting Pronouncements</font></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;padding-top:3.99999999px;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In January&nbsp;2010, the Financial Accounting Standards Board, or FASB, issued amended guidance on fair value measurements and disclosures. The new guidance requires a reporting entity to disclose separately the amounts of significant transfers in and out of Level 1 and Level 2 fair value measurements and to describe the reasons
 for the transfers. It also amends disclosures about post retirement benefit plan assets, and provides clarification regarding the level of disaggregation of fair value disclosures by investment class. This guidance is effective for interim and annual reporting periods beginning after December&nbsp;15, 2009, except for certain Level 3 activity disclosure requirements that will be effective for reporting periods beginning after December&nbsp;15, 2010. Accordingly, the Company adopted this amendment in the quarter ended April&nbsp;4, 2010, except for the additional Level 3 requirements which will be adopted in 2011. See Note 7 - Fair Value Measurements.</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In February&nbsp;2010, the FASB issued amended guidance on subsequent ev
ents. Under this amended guidance, SEC filers are no longer required to disclose the date through which subsequent events have been evaluated in originally issued and revised financial statements. This guidance was effective immediately and we adopted this new guidance in the quarter ended April&nbsp;4, 2010. </font></div><div style="line-height:120%;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In April 2010, the FASB's EITF issued new authoritative guidance addressing the milestone method of revenue recognition. The guidance provides the criteria that should be met for determining whether the milestone method of revenue recognition is appropriate.&nbsp;A vendor can recognize consideration that is contingent upon achievement of a milestone in its entirety as revenue in the period in which the milestone is achieved only if the milestone m
eets all criteria to be considered substantive.&nbsp;The following criteria must be met for a milestone to be considered substantive:&nbsp;(1) be commensurate with either the level of effort required to achieve the milestone or the enhancement of the value of the item delivered as a result of a specific outcome resulting from the vendor's performance to achieve the milestone; (2)&nbsp;related solely to past performance; and (3)&nbsp;be reasonable relative to all deliverables and payment terms in the arrangement.&nbsp;No bifurcation of an individual milestone is allowed and there can be more than one milestone in an arrangement. Accordingly, an arrangement may contain both substantive and non-substantive milestones.&nbsp;This guidance is effective on a prospective basis for milestones achieved in fiscal years, and interim periods within those years, beginning on or after June&nbsp;15, 2010.  The Company will adopt the new guidance addressing certain milestone method of revenue recognition in the third quarter
 of fiscal 2010 beginning July 5, 2010 and the adoption is not expected to have any material impact on our condensed consolidated financial statements.</font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">8</font></div></div><hr style="page-break-after:always"><div style="vertical-align:inherit;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">QUICKLOGIC CORPORATION</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued) </font></div></div><br><div style="line-height:120%;text-indent
:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><a name="s9495C3B8C3926B6D2D5EFEDA603C32B7"></a><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Note&nbsp;3 &mdash; Net Loss Per Share</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Basic net loss per share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net loss per share was computed using the weighted average number of common shares outstanding during the period plus potentially dilutive common shares outstanding during the period under the treasury stock method. In computing diluted
 net loss per share, the weighted average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options.</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">For the second quarter and the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-fam
ily:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">9.5 million</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">9.5 million</font><font style="font-family:inherit;font-size:10pt;"> shares, respectively, associated with equity awards outstanding and the estimated number of shares to be purchased under the current offering period of the 2009 Employee Stock Purchase Plan were not included in the calculation of diluted net loss per share, as they were considered antidilutive due to the net loss the Company experienced during these periods.</font></div><div style="line-height:120%;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><a name="s2CC66C4E863BA5570A8AFEDAC2BC9B1B"></a><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Note 4 &mdash; Investment in Towe
rJazz Semiconductor Ltd. </font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">During the first quarter of fiscal year 2010, the Company sold 700,000 of the TowerJazz ordinary shares. As of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;">, the Company held 645,000 available-for-sale TowerJazz ordinary shares with an unrealized gain of </font><font style="font-family:inherit;color:#000000;text-decoration:none;">$0.8 million</font><font style="font-family:inherit;font-size:10pt;"> recorded in accumulated other comprehensive income on the balance sheet, representing the difference between the carrying value of $0.13 per share and $1.38 per share, their 
fair value on the last trading day of the reporting period. The fair value of TowerJazz marketable securities as of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;"> was determined based on &ldquo;Level 1&rdquo; inputs as described in Note 7. The Company plans to continue to hold at least 450,000 of the TowerJazz ordinary shares until the end of 2010 in order to receive preferred product pricing under the agreements with TowerJazz and has recorded these shares as a short-term investment on the balance sheets. </font></div><div style="line-height:120%;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">During the years of 2001 and 2002, the Company also received $4.7&nbsp;million in prepaid wafer credits in partial conside
ration for the investment. During 2008, the Company assessed the value of its TowerJazz wafer credit and incurred a long-lived asset impairment of $1.3 million. During the third quarter of 2009, the Company assessed the value of its TowerJazz wafer credit and incurred a long-lived asset impairment of $150,000. As of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;">, the net prepaid wafer credits balance after impairment and amortization was </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$64,000</font><font style="font-family:inherit;font-size:10pt;">. The Company has guaranteed capacity at TowerJazz through December 2010. These credits can be applied toward wafer purchases from TowerJazz at 15% of the value of purchases made through 2010. </font></div><div style="line-height:120%;text-indent:35.99999991px;"><font style="font-family:i
nherit;font-size:10pt;">&nbsp;</font></div><a name="sCD3917AE12E8B6BFC8D8FEDB58FB62F7"></a><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Note&nbsp;5 &mdash; Balance Sheet Components</font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">9</font></div></div><hr style="page-break-after:always"><div style="vertical-align:inherit;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">QUICKLOGIC CORPORATION</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">NOTES TO CONDENSED UNAUDITED
 CONSOLIDATED FINANCIAL STATEMENTS -- (Continued) </font></div></div><br><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">&nbsp;</font><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;width:100%;border-collapse:collapse;"><tr><td></td><td width="9.3999999765px"></td><td width="92.79999976800002px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="92.79999976800002px"></td><td width="4.4666666555px"></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="7" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:223.99999944px;"><div style="text-align:center;font-size:8pt;width:227.99999944px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-we
ight:bold;">As of</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:106.66666640000001px;"><div style="text-align:center;font-size:8pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, 2010</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:106.66666640000001px;"><div style="text-align:center;font-size:8pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Jan
uary&nbsp;3, 2010</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="7" style="vertical-align:bottom;padding:0px;width:223.99999944px;"><div style="text-align:center;font-size:8pt;width:227.99999944px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">(in thousands)</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Inventories:</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:106.66666640000001px;"><div style="text-align:left;font-size:10pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:
bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:106.66666640000001px;"><div style="text-align:left;font-size:10pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Raw materials</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:92.79999976800002px;"><div 
style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">3</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002p
x"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">3</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Work-in-process</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,999</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;paddi
ng:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,889</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Finished goods</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:
right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">221</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">227</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px sol
id #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,223</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="paddi
ng-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,119</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.46666
66555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Other current assets:</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:106.66666640000001px;"><div style="text-align:left;font-size:10pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:106.66666640000001px;"><div style="text-a
lign:left;font-size:10pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Prepaid expenses</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">909</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><
/td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">390</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inheri
t;font-size:10pt;background-color:transparent;">Other</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">155</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="te
xt-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">146</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.7
9999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,064</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.799
99976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">536</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Property and equipment:</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:106.66666640000001px;"><div style="text-align:left;font-size:10pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;fo
nt-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:106.66666640000001px;"><div style="text-align:left;font-size:10pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Equipment</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-
color:transparent;">12,618</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">12,317</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.466666655
5px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Software</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">8,586</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbs
p;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">8,451</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Furniture and fixtures</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">769</font></div></td><td style="vertical-al
ign:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">780</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:trans
parent;">Leasehold improvements</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">800</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-si
ze:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">800</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">22,773</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nb
sp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">22,348</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Accumulated depreciation and amortization</font></div></td><td colspan="2" style
="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(20,097</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><fon
t style="font-family:inherit;font-size:10pt;background-color:transparent;">(19,655</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="fo
nt-family:inherit;font-size:10pt;background-color:transparent;">2,676</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font
- -family:inherit;font-size:10pt;background-color:transparent;">2,693</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Other assets:</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:106.66666640000001px;"><div style="text-align:left;font-size:10pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font 
style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:106.66666640000001px;"><div style="text-align:left;font-size:10pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Prepaid wafer credits</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;<
/font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">254</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:
inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Other</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">196</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:
inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">42</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family
:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">196</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font
></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">296</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Accrued liabilities:</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:106.66666640000001px;"><div style="text-align:left;font-size:10pt;width:110.66666640000001px"><font style="font-family:
inherit;font-size:10pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:106.66666640000001px;"><div style="text-align:left;font-size:10pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Employee related accruals</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</fon
t></div></td><td style="vertical-align:bottom;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">759</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><fon
t style="font-family:inherit;font-size:10pt;background-color:transparent;">858</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Other</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">247</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="fo
nt-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">250</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:trans
parent;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,006</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:b
ottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,108</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><a name="s7CDA9B0B94E5362599D1FEDC16C0A4C2"></a><div style="line
- -height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Note&nbsp;6 &mdash; Obligations</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">&nbsp;</font></div><div style="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td></td><td width="9.3999999765px"></td><td width="92.79999976800002px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="92.79999976800002px"></td><td width="4.4666666555px"></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="7" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0p
x;width:223.99999944px;"><div style="text-align:center;font-size:8pt;width:227.99999944px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">As of</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:106.66666640000001px;"><div style="text-align:center;font-size:8pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, 2010</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:106.66666640000001p
x;"><div style="text-align:center;font-size:8pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">January&nbsp;3, 2010</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="7" style="vertical-align:bottom;padding:0px;width:223.99999944px;"><div style="text-align:center;font-size:8pt;width:227.99999944px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">(in thousands)</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Debt and capital lease obligations:</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#c
ceeff;padding:0px;width:106.66666640000001px;"><div style="text-align:right;font-size:1pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:106.66666640000001px;"><div style="text-align:right;font-size:1pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Revolving line of credit</font></div></td><td style="vertical-align:bottom;padding
:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,000</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-fam
ily:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,000</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Capital leases</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">604</
font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">513</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;fon
t-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,604</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:
10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,513</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Current portion of debt and capital lease obligations</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(2,397</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left
:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(2,249</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;backg
round-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">207</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"
><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">264</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-
family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Revolving Line of Credit</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;font-size:10pt;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">In June 2010, the Company entered into the Sixth Amendment to Second Amended and Restated Loan and Security Agreement with Silicon Valley Bank. The terms of the amended agreement include a $6 million revolving line of credit available through June 2011, as long as the Company is in compliance with the loan covenants.  Upon each advance, the Company can elect a variable interest rate, which is the prime rate plus one half of one percent (0.50%), or a fixed 
rate which is </font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">10</font></div></div><hr style="page-break-after:always"><div style="vertical-align:inherit;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">QUICKLOGIC CORPORATION</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued) </font></div></div><br><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> LIBOR plus the LIBOR rate margin, as the case may be. </font></
div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">During the </font><font style="font-family:inherit;color:#000000;text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> quarter of 2010, the Company repaid $2.0 million of revolving debt at an interest rate of 6% and borrowed $2.0 million of revolving debt with an interest rate of 4.5% as of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;">. </font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991
px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The bank has a first priority security interest in substantially all of the Company's tangible and intangible assets to secure any outstanding amounts under the agreement. Under the terms of the agreement, except as noted above, the Company must maintain a minimum tangible net worth of at least $15 million, adjusted quick ratio of 2 to 1 and a minimum cash balance of at least $8 million with Silicon Valley Bank. The agreement also has certain restrictions including, among others, on the incurrence of other indebtedness, the maintenance of depository accounts, the disposition of assets, mergers, acquisitions, investments, the granting of liens and the payment of dividends. The Company was in compliance with the financial covenants of the agreement as of the end of the current reporting period.</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"
>&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Capital Leases</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In January 2010, the Company leased design software and related maintenance under a two-year capital lease at an imputed interest rate of 5.75%&nbsp;per annum. Terms of the agreement require the Company to make quarterly payments of approximately $38,000 through November 2011. The Company recorded a capital asset of $233,000 and prepaid maintenance of $51,000 that is being amortized over the term of the agreement and a capital lease obligation of $284,000. As of </font><font style="font-family:Times New Roman;co
lor:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$214,000</font><font style="font-family:inherit;font-size:10pt;"> was outstanding under the capital lease, of which </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$141,000</font><font style="font-family:inherit;font-size:10pt;"> was classified as a current liability. </font></div><div style="line-height:120%;padding-top:11.999999970000001px;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In January 2009, the Company leased design software tools and related maintenance under a three-year capital lease at an imputed interest rate of 5.75%&nbsp;per annum. Terms of the agreement require the Company to make semi-annual payments of principal and interest of, approximately $138,000
 through August 2011, for a total of approximately $825,000 over the three years period. As of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$390,000</font><font style="font-family:inherit;font-size:10pt;"> was outstanding under the capital lease, of which </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$256,000</font><font style="font-family:inherit;font-size:10pt;"> was classified as a current liability. </font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:7pt;"><font style="font-family:inherit;font-size:7pt;">&nbsp;</font></div><div style="line-height:120%;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><a name="sC5B2DF86D1DF2CEF72E8FEDC6CA
DA5B2"></a><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Note 7 &mdash; Fair Value Measurements</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:31.99999992px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The guidance for the fair value option for financial assets and financial liabilities provides companies the option to measure many financial assets and liabilities at fair value with changes in fair value recognized in earnings or equity. The Company has not elected to measure any financial assets or liabilities at fair value that were not previously required to be measured at fair value</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;">.</font></div><div style="line-height:120%;text-align:left;text-indent:31.99999992px;"><font style
="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The authoritative guidance specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources (observable inputs) or reflect the company's own assumption of market participant valuation (unobservable inputs). The fair value hierarchy consists of the following three levels:</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="position:relative"><div style="line-height:120%;text-align:left;font-size:10pt;position:absolute;padding-left:47.999999880000004px;top:0px;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">&bull;&nbsp
;&nbsp;&nbsp;&nbsp;</font></div><div style="line-height:120%;padding-left:95.99999976000001px;text-align:left;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;text-indent:0px;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Level 1</font><font style="font-family:inherit;font-size:10pt;"> - Inputs are quoted prices in active markets for identical assets or liabilities.</font></div></div></div><div style="line-height:120%;padding-left:95.99999976000001px;text-align:left;text-indent:-47.999999880000004px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="position:relative"><div style="line-height:120%;text-align:left;font-size:10pt;position:absolute;padding-left:47.999999880000004px;top:0px;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">&bull;&nbsp;&nbsp;&nbsp;&nbsp;</font></div><div style="line-height:120%;padding-left:95.99999976000001px;text-align:left;font-size:10pt;"><div style="line-height:120%;text-ali
gn:left;font-size:10pt;text-indent:0px;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Level 2</font><font style="font-family:inherit;font-size:10pt;"> - Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data.</font></div></div></div><div style="line-height:120%;padding-left:95.99999976000001px;text-align:left;text-indent:-47.999999880000004px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="position:relative"><div style="line-height:120%;text-align:left;font-size:10pt;position:absolute;padding-left:47.999999880000004px;top:0px;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">&bull;&nbsp;&nbsp;&nbsp;&nbsp;</font></div><div style="line-height:120%;padding-left:
95.99999976000001px;text-align:left;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;text-indent:0px;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Level 3</font><font style="font-family:inherit;font-size:10pt;"> - Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable.</font></div></div></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The following table presents the Company's financial assets that are measured at fair value on a recurring basis as of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;">, consistent with the fair value hierarchy provisio
ns of the authoritative guidance (in thousands):</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">11</font></div></div><hr style="page-break-after:always"><div style="vertical-align:inherit;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">QUICKLOGIC CORPORATION</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued) </font><
/div></div><br><div style="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td></td><td width="9.3999999765px"></td><td width="39.46666656800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="39.46666656800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="39.46666656800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="39.46666656800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="39.46666656800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="39.46666656800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px
"></td><td width="9.3999999765px"></td><td width="39.46666656800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="39.46666656800001px"></td><td width="4.4666666555px"></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="15" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:245.33333272000002px;"><div style="text-align:center;font-size:8pt;width:249.33333272000002px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">As of July 4, 2010</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></
div></td><td colspan="15" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:245.33333272000002px;"><div style="text-align:center;font-size:8pt;width:249.33333272000002px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">As of January 3, 2010</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:53.333333200000006px;"><div style="text-align:center;font-size:8pt;width:57.333333200000006px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Total</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:1pt;width:12.66666664px"><
font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:53.333333200000006px;"><div style="text-align:center;font-size:8pt;width:57.333333200000006px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Level 1</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:53.333333200000006px;"><div style="text-align:center;font-size:8pt;width:57.333333200000006px"><font style="font-family:inherit;font-size:8pt;background-color:tra
nsparent;font-weight:bold;">Level 2</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:53.333333200000006px;"><div style="text-align:center;font-size:8pt;width:57.333333200000006px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Level 3</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:53.33
3333200000006px;"><div style="text-align:center;font-size:8pt;width:57.333333200000006px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Total</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:53.333333200000006px;"><div style="text-align:center;font-size:8pt;width:57.333333200000006px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Level 1</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;fo
nt-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:53.333333200000006px;"><div style="text-align:center;font-size:8pt;width:57.333333200000006px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Level 2</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:53.333333200000006px;"><div style="text-align:center;font-size:8pt;width:57.333333200000006px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Level 
3</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Assets:</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:53.333333200000006px;"><div style="text-align:right;font-size:1pt;width:57.333333200000006px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:53.333333200000006px;"><div style="text-align:right;font-size:1pt;width:57.333333200000006px"><font style="font-family:inherit;font-size:1pt;back
ground-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:53.333333200000006px;"><div style="text-align:right;font-size:1pt;width:57.333333200000006px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:53.333333200000006px;"><div style="text-align:right;font-size:1pt;width:57.33333320000
0006px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:53.333333200000006px;"><div style="text-align:right;font-size:1pt;width:57.333333200000006px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:53.333333200000006px;"><div
 style="text-align:right;font-size:1pt;width:57.333333200000006px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:53.333333200000006px;"><div style="text-align:right;font-size:1pt;width:57.333333200000006px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-
color:#cceeff;padding:0px;width:53.333333200000006px;"><div style="text-align:right;font-size:1pt;width:57.333333200000006px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Money market funds</font><font style="font-family:inherit;font-size:10pt;"><sup>&nbsp;(1)</sup></font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:39.46666656800001px;"><div style="text-align:right;font-size:10pt;width:41.46666656800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">14,120</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="
padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:39.46666656800001px;"><div style="text-align:right;font-size:10pt;width:41.46666656800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">14,120</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertica
l-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:39.46666656800001px;"><div style="text-align:right;font-size:10pt;width:41.46666656800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-
family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:39.46666656800001px;"><div style="text-align:right;font-size:10pt;width:41.46666656800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;w
idth:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:39.46666656800001px;"><div style="text-align:right;font-size:10pt;width:41.46666656800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">14,369</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:i
nherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:39.46666656800001px;"><div style="text-align:right;font-size:10pt;width:41.46666656800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">14,369</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:39.46666656800001px;"><div style="tex
t-align:right;font-size:10pt;width:41.46666656800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:39.46666656800001px;"><div style="text-align:right;font-size:10pt;width:41.46666656800001px"><font style="font-family:inherit;font-size:10pt;background-color:transpare
nt;">&mdash;</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Investment in TowerJazz Semiconductor Ltd.</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:48.8666665445px;"><div style="text-align:right;font-size:10pt;width:52.8666665445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">889</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbs
p;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:48.8666665445px;"><div style="text-align:right;font-size:10pt;width:52.8666665445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">889</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;fon
t-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:48.8666665445px;"><div style="text-align:right;font-size:10pt;width:52.8666665445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:48.8666665445px;"><di
v style="text-align:right;font-size:10pt;width:52.8666665445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:48.8666665445px;"><div style="text-align:right;font-size:10pt;width:52.8666665445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,305</font></div></td><td style="vertical-align:bottom;backgrou
nd-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:48.8666665445px;"><div style="text-align:right;font-size:10pt;width:52.8666665445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,305</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td>
<td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:48.8666665445px;"><div style="text-align:right;font-size:10pt;width:52.8666665445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;backg
round-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:48.8666665445px;"><div style="text-align:right;font-size:10pt;width:52.8666665445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Total assets</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-fa
mily:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:39.46666656800001px;"><div style="text-align:right;font-size:10pt;width:41.46666656800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">15,009</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-famil
y:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:39.46666656800001px;"><div style="text-align:right;font-size:10pt;width:41.46666656800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">15,009</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-s
ize:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:39.46666656800001px;"><div style="text-align:right;font-size:10pt;width:41.46666656800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765
px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:39.46666656800001px;"><div style="text-align:right;font-size:10pt;width:41.46666656800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;pad
ding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:39.46666656800001px;"><div style="text-align:right;font-size:10pt;width:41.46666656800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">15,674</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;">
<div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:39.46666656800001px;"><div style="text-align:right;font-size:10pt;width:41.46666656800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">15,674</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padd
ing-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:39.46666656800001px;"><div style="text-align:right;font-size:10pt;width:41.46666656800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;wid
th:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:39.46666656800001px;"><div style="text-align:right;font-size:10pt;width:41.46666656800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">_________________</font></div><div style="line-height:120%;text-align:left;"><font style="font-family:inherit;font-size:5pt;">&nbsp;</font></div><div style="line-height:120%;padding-left:23.999999940000002px;text-align:left;text-indent:-23.999999940000002px;font-size:10pt;"><font style="fo
nt-family:inherit;font-size:10pt;"><sup>(1)</sup></font><font style="font-family:inherit;font-size:3pt;"><sup>&nbsp;</sup></font><font style="font-family:inherit;font-size:3pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font style="font-family:inherit;font-size:10pt;">Money market funds which were invested in a U.S. Treasury money market fund, are presented as a part of cash and cash equivalents on the accompanying consolidated balance sheets as of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">January&nbsp;3, 2010</font><font style="font-family:inherit;font-size:10pt;">.  </font></div><div style="line-height:120%;padding-left:26.666666600000003px;text-align:left;text-indent:-27.99999993px;font-size:10pt;"><font style="font-family:inherit;font-size:
10pt;">&nbsp;</font></div><div style="line-height:120%;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">As of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;">, there is no material difference between the fair value and the carrying amount of the debt outstanding under the Company's line of credit and capital leasing arrangements.</font></div><div style="line-height:120%;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><a name="sA68F37A838581720B2E0FEDCF71B8FB4"></a><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Note 8 &mdash; Employee Stock Plans</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;&nbsp;</font><
/div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">1999 Stock Plan</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company adopted the 1999 Stock Plan, or 1999 Plan, in September 1999. The 1999 Plan provided for the issuance of incentive and nonqualified options, restricted stock units and restricted stock. Equity awards granted under the 1999&nbsp;Plan have a term of up to ten&nbsp;years. Options typically vest at a rate of 25% one year after the vesting commencement date, and one forty-eighth for each month of service thereafter. </font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;"><font style="f
ont-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">2009 Stock Plan</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The 2009 Stock Plan, or 2009 Plan, was adopted by the Board of Directors in March&nbsp;2009 and approved by the Company's stockholders on April&nbsp;22, 2009. As of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;">, approximately </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">3
.7 million</font><font style="font-family:inherit;font-size:10pt;"> shares were reserved for issuance under the 2009 Plan. Equity awards that are cancelled, forfeited or repurchased under the 1999&nbsp;Plan also become available for grant under the 2009&nbsp;Plan, up to a maximum of an additional 7,500,000 shares. Equity awards granted under the 2009&nbsp;Plan have a term of up to ten&nbsp;years. Options typically vest at a rate of 25% one year after the vesting commencement date, and one forty-eighth for each month of service thereafter. The Company may implement different vesting schedules in the future with respect to any new equity awards.</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Employee Stock Purchas
e Plan</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The 2009 Employee Stock Purchase Plan, or 2009 ESPP, was adopted by the Board of Directors in March&nbsp;2009 and approved by the Company's stockholders on April&nbsp;22, 2009. The Company has reserved 2.3&nbsp;million shares for issuance under the 2009 ESPP. The 2009 ESPP provides for six month offering periods. Participants purchase shares through payroll deductions of up to 20% of an employee's total compensation (maximum of 20,000 shares per offering period). The 2009 ESPP permits the Board of Directors to determine, prior to each offering period, whether participants purchase shares at: (i)&nbsp;85% of the fair market value of the common stock at the end of the offering period; or (ii)&nbsp;85% of the lower of the fair market
 value of the common stock at the beginning or the end of an offering period. The Board of Directors has determined that, until further notice, for future offering periods the participant's purchase price will be the lower of (i)&nbsp;85% of the fair market value of the common stock at the end of the offering period; or (ii)&nbsp;85% of the lower of the fair market value of the common stock at the beginning or the end of an offering period.</font></div><div style="line-height:120%;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><a name="s89DC4FE51D6906E3FE98FEDD387EB59A"></a><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Note 9 &mdash; Stock-Based Compensation</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size
:10pt;"><font style="font-family:inherit;font-size:10pt;">Stock-based compensation expense is recognized in the Company's consolidated statements of operations and includes&nbsp;compensation expense for the stock-based compensation awards granted or modified subsequent to January&nbsp;1, 2006, based on the grant date fair value estimated in accordance with the provisions of the amended authoritative guidance. The impact of the amended authoritative guidance on the Company's consolidated financial statements for the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> quarter of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;">
 was as follows (in thousands):</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">12</font></div></div><hr style="page-break-after:always"><div style="vertical-align:inherit;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">QUICKLOGIC CORPORATION</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued) </font></div></div><br><div style="line-height:120%
;text-align:left;font-size:10pt;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;width:100%;border-collapse:collapse;"><tr><td></td><td width="9.3999999765px"></td><td width="52.79999986800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="52.79999986800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="52.79999986800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="52.79999986800001px"></td><td width="4.4666666555px"></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="7" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:143.99999964px;"><div style="text-align
:center;font-size:8pt;width:147.99999964px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Three Months Ended</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="7" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:143.99999964px;"><div style="text-align:center;font-size:8pt;width:147.99999964px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Six Months Ended</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #0
00000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, <br>2010</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:8pt;width:12.66666664px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">June&nbsp;28, <br>2009</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:8pt;width:12.66666664px"><font style="font-family:inherit;fon
t-size:8pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, <br>2010</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:8pt;width:12.66666664px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">June&nbsp;28, <br>2009</font></div></td></tr><tr><td s
tyle="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Cost of revenue</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">39</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0p
x;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">71</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style=
"text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">86</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;widt
h:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">122</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transp
arent;">Research and development</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:62.199999844500006px;"><div style="text-align:right;font-size:10pt;width:66.19999984450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">180</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:62.199999844500006px;"><div style="text-align:right;font-size:10pt;width:66.19999984450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">138</font></div></td><td style="vertical-align:bottom;p
adding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:62.199999844500006px;"><div style="text-align:right;font-size:10pt;width:66.19999984450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">355</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;backg
round-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:62.199999844500006px;"><div style="text-align:right;font-size:10pt;width:66.19999984450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">226</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Selling, general and administrative</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:62.199999844500006px;"><div style="text-align:right;font-size:10pt;width:66.19999984450001px"><font style="font-family:inherit;font-size:10pt;bac
kground-color:transparent;">414</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:62.199999844500006px;"><div style="text-align:right;font-size:10pt;width:66.19999984450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">358</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px
;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:62.199999844500006px;"><div style="text-align:right;font-size:10pt;width:66.19999984450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">844</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="t
ext-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:62.199999844500006px;"><div style="text-align:right;font-size:10pt;width:66.19999984450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">603</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Total costs and expenses</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:9
.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">633</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.39999
99765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">567</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border
- -bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,285</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="ver
tical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">951</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="
line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The amount of stock-based compensation included in inventories for the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> quarter of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;"> was not significant.</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:ita
lic;font-weight:bold;">Valuation Assumptions</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The following weighted average assumptions are included in the estimated fair value calculations for stock option grants:</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td></td><td width="55.5333331945px"></td><td width="11.1333333055px"></td><td width="10.66666664px"></td><td width="55.5333331945px"></td><td width="11.1333333055px"></td><td width="10.666666
64px"></td><td width="55.5333331945px"></td><td width="11.1333333055px"></td><td width="10.66666664px"></td><td width="55.5333331945px"></td><td width="11.1333333055px"></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="5" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:143.99999964px;"><div style="text-align:center;font-size:8pt;width:147.99999964px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Three Months Ended</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="5" style="vertical-align:bottom;border-bottom:1px solid #
000000;padding:0px;width:143.99999964px;"><div style="text-align:center;font-size:8pt;width:147.99999964px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Six Months Ended</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, <br>2010</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:8pt;width:12.66666664px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">&nb
sp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">June&nbsp;28, <br>2009</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:8pt;width:12.66666664px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, <br>2010</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div styl
e="text-align:center;font-size:8pt;width:12.66666664px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">June&nbsp;28, <br>2009</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Expected term (years)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">5.42</font></div></td><td 
style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.1333333055px;"><div style="padding-left:0px;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">5.15</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.1333333055px;"><div style="padding-left:0px;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0p
x;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">5.42</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.1333333055px;"><div style="padding-left:0px;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:55.5333331945px;"><
div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">5.14</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.1333333055px;"><div style="padding-left:0px;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Risk-free interest rate</font></div></td><td style="vertical-align:bottom;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2.40</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:i
nherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1.98</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt
;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2.40</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1.97</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td></tr><tr><td s
tyle="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Expected volatility</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">58.01</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceef
f;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">51.04</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">58.02</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:1
1.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">51.00</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="f
ont-family:inherit;font-size:10pt;background-color:transparent;">Expected dividend</font></div></td><td style="vertical-align:bottom;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="padding-left:0px;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="verti
cal-align:bottom;padding:0px;width:11.1333333055px;"><div style="padding-left:0px;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="padding-left:0px;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;
background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="padding-left:0px;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The weighted average estimated fair value for options granted during the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">second</font><font style="font-family:in
herit;font-size:10pt;"> quarter of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;"> were </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$1.48</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$0.75</font><font style="font-family:inherit;font-size:10pt;"> per option, respectively. The weighted average estimated fair value for options granted during the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#
000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;"> was </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$1.48</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$0.74</font><font style="font-family:inherit;font-size:10pt;"> per option, respectively. As of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;">, the fair value of unvested stock options, net of expected forfeitures, was approximately </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$3.7 million</font>
<font style="font-family:inherit;font-size:10pt;">. This unrecognized stock-based compensation expense is expected to be recorded over a weighted average period of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2.79</font><font style="font-family:inherit;font-size:10pt;"> years.</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Stock-Based Compensation Award Activity</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The following table summarizes the 
shares available for grant under the 2009 Plan </font><font style="font-family:inherit;color:#000000;text-decoration:none;">as of July 4, 2010</font><font style="font-family:inherit;font-size:10pt;">:</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td></td><td width="102.19999974450002px"></td><td width="4.4666666555px"></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:106.66666640000001px;"><div style="text-align:
center;font-size:8pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Shares</font></div><div style="text-align:center;font-size:8pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Available&nbsp;for&nbsp;Grant</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:106.66666640000001px;"><div style="text-align:center;font-size:8pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">(in&nbsp;thousands)</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:tran
sparent;">Balance at January 3, 2010</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:104.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,619</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Authorized</font></div></td><td style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:104.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-
align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Options granted</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:104.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(1,739</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:
10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Options forfeited or expired</font></div></td><td style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:104.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">586</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">RSUs granted</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:104.19999974450002px"><font style="font-family:inherit;font-size:10p
t;background-color:transparent;">(168</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">RSUs forfeited or expired</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:104.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div
></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Balance at July 4, 2010</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:104.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,298</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:center;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="l
ine-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Stock Options</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The following table summarizes stock options outstanding and stock option activity under the 1999 Plan and the 2009 Plan, and the related weighted average exercise price, for the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;">:</font></div><div style="line-height:120%;text-al
ign:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">13</font></div></div><hr style="page-break-after:always"><div style="vertical-align:inherit;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">QUICKLOGIC CORPORATION</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued) </font></div></div><br><div style="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style="font-family:Ti
mes New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td></td><td width="75.5333331445px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="66.13333316800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="75.5333331445px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="66.13333316800001px"></td><td width="4.4666666555px"></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;
font-weight:bold;">Number of Shares</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Weighted</font></div><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Average Exercise</font></div><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Price</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:1pt;width:1
2.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Weighted</font></div><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Average</font></div><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Remaining Term</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:
bottom;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Aggregate</font></div><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Intrinsic Value</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">(in&nbsp;thousands)</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10p
t;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:1pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">(in&nbsp;years)</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:1pt;width
:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">(in thousands)</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Balance outstanding at January&nbsp;3, 2010</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:77.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">8,331</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:
4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">3.37</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.466666
6555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:79.99999980000001px;"><div style="overflow:hidden;font-size:10pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:79.99999980000001px;"><div style="overflow:hidden;font-size:10pt;width:83.99999980000001px"><font style="font-fa
mily:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Granted</font></div></td><td style="vertical-align:bottom;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:77.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,739</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;wid
th:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2.79</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:79.99999980000001px;"><div style="overflow:hidden;font-size:10pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:botto
m;padding:0px;width:79.99999980000001px;"><div style="overflow:hidden;font-size:10pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Forfeited or expired</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:77.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(586</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664p
x;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">9.62</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:79.99999980000001px;"><div style="overflow:h
idden;font-size:10pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:79.99999980000001px;"><div style="overflow:hidden;font-size:10pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Exercised</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:77.5333331445px"><font style="font-family:inherit;font-size
:10pt;background-color:transparent;">(308</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1.49</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><t
d style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="overflow:hidden;font-size:10pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="overflow:hidden;font-size:10pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff
;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Balance outstanding at July 4, 2010</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:77.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">9,176</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cce
eff;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2.92</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font
></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:77.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">6.49</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765
px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">5,094</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Exercisable at July 4, 2010</font></div></td><td style="vertical-align:bo
ttom;border-top:3px double #000000;border-bottom:3px double #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:77.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">5,144</font></div></td><td style="vertical-align:bottom;border-top:3px double #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style
="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">3.46</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:77.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">4.51</font></div></td><td style="vertical-align:
bottom;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,908</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #
000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Vested and expected to vest at July 4, 2010</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:77.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">8,613</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background
- -color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2.96</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&
nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:77.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">6.31</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size
:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">4,698</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font
- -family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The aggregate intrinsic value in the table above represents the total pretax intrinsic value, based on the Company's closing stock price of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$2.94</font><font style="font-family:inherit;font-size:10pt;"> as of the end of the Company's current reporting period, which would have been received by the option holders had all option holders exercised their options as of that date.</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The total intrinsic value of options exercised du
ring the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> was </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$409,000</font><font style="font-family:inherit;font-size:10pt;">. Total cash received from employees as a result of employee stock option exercises during the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> was approximately </font><font style="font-family:Times New Roman;color:#000000;font
- -size:10pt;text-decoration:none;">$458,000</font><font style="font-family:inherit;font-size:10pt;">. The Company settles employee stock option exercises with newly issued common shares. In connection with these exercises, there was no tax benefit realized by the Company due to its current loss position. There were no stock option exercises during the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;">. Total stock-based compensation related to stock options were </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$418,000</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$793,
000</font><font style="font-family:inherit;font-size:10pt;"> for the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> quarter and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;">, respectively.</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Restricted Stock Awards and Restricted Stock Units</font></div><div style="line-h
eight:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company began issuing restricted stock awards, or RSAs in the second quarter of 2007 and restricted stock units, or RSUs, in the third quarter of 2007. RSAs entitle the holder to purchase shares of common stock at par value during a short period of time, and purchased shares are held in escrow until they vest. RSUs entitle the holder to receive, at no cost, one common share for each restricted stock unit as it vests. During the first quarter of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;">, the Company granted RSUs under the 2009 Plan, in lieu of cash compensation, that vest in one tranche on May&nbsp;11, 2010. Total stock-based compensation re
lated to RSUs was </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$178,000</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;color:#000000;text-decoration:none;">$407,000</font><font style="font-family:inherit;font-size:10pt;"> for the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> quarter and </font><font style="font-family:inherit;color:#000000;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:inherit;color:#000000;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;">. The Company withheld shares in settlement of employee tax withholding obligations upon the vesting of restricted stock units. A summary of the Company's RSA and RSU activity and related information are as follows:</font>
</div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td></td><td width="88.86666644450001px"></td><td width="4.4666666555px"></td><td width="11.999999970000001px"></td><td width="9.3999999765px"></td><td width="79.46666646800001px"></td><td width="4.4666666555px"></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="6" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:198.66666617px;"><div style="text-align:center;font-size:8pt;width:202.66666617px"><font style="font-family:inherit;font-size:8pt;background-
color:transparent;font-weight:bold;">RSAs and RSUs&nbsp;Outstanding</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:93.3333331px;"><div style="text-align:center;font-size:8pt;width:97.3333331px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Number&nbsp;of&nbsp;Shares</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:11.999999970000001px;"><div style="text-align:center;font-size:1pt;width:13.999999970000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;paddin
g:0px;width:93.3333331px;"><div style="text-align:center;font-size:8pt;width:97.3333331px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Weighted&nbsp;Average</font></div><div style="text-align:center;font-size:8pt;width:97.3333331px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Grant Date Fair Value</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:93.3333331px;"><div style="text-align:center;font-size:8pt;width:97.3333331px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">(in&nbsp;thousands)</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.999999970000001px;"><div style="text-align:center;font-size:1pt;width:13.999999970000001px"><font style="font-family
:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:93.3333331px;"><div style="text-align:center;font-size:1pt;width:97.3333331px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Nonvested at January 3, 2010</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:88.86666644450001px;"><div style="text-align:right;font-size:10pt;width:90.86666644450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"
><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.999999970000001px;"><div style="text-align:left;font-size:1pt;width:13.999999970000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:79.46666646800001px;"><div style="text-align:right;font-size:10pt;width:81.46666646800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="fo
nt-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Granted</font></div></td><td style="vertical-align:bottom;padding:0px;width:88.86666644450001px;"><div style="text-align:right;font-size:10pt;width:90.86666644450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">168</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.999999970000001px;"><div style="text-align:left;font-size:1pt;width:13.999999970000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:88.8666664445
0001px;"><div style="text-align:right;font-size:10pt;width:92.86666644450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2.43</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Vested</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:88.86666644450001px;"><div style="text-align:right;font-size:10pt;width:90.86666644450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(168</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10
pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.999999970000001px;"><div style="text-align:left;font-size:1pt;width:13.999999970000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:88.86666644450001px;"><div style="text-align:right;font-size:10pt;width:92.86666644450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2.43</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;backgroun
d-color:transparent;">Forfeited</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:88.86666644450001px;"><div style="text-align:right;font-size:10pt;width:90.86666644450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.999999970000001px;"><div style="overflow:hidden;font-size:10pt;width:13.999999970000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:88.86666644450001px;"><div style="text-align:right;font-size:10pt;width:92.86666644450001px"><font style="font-family:inherit;font-size:10pt;background-col
or:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Nonvested at July 4, 2010</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:88.86666644450001px;"><div style="text-align:right;font-size:10pt;width:90.86666644450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:
inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.999999970000001px;"><div style="text-align:left;font-size:1pt;width:13.999999970000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:79.46666646800001px;"><div style="text-align:right;font-size:10pt;width:81.46666646800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:4.46666665
55px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">As of </font><font style="font-family:inherit;color:#000000;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;">, all RSUs are fully vested.</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Employee Stock Purchase Plan</font><
/div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;padding-top:5.33333332px;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The weighted average estimated fair value, as defined by the amended authoritative guidance, of rights issued pursuant to the Company's 2009 ESPP plan during the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> quarter of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;"> was </font><font style="font-fami
ly:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$1.03</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$0.63</font><font style="font-family:inherit;font-size:10pt;"> per right, respectively. </font></div><div style="line-height:120%;padding-top:5.33333332px;text-align:left;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;font-size:10pt;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">As of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2,031,000</font><font style="font-family:inherit;font-size:10pt;"> shares under the 2009 ESPP rem
ained available for issuance. For the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> quarter and </font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">14</font></div></div><hr style="page-break-after:always"><div style="vertical-align:inherit;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">QUICKLOGIC CORPORATION</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)
 </font></div></div><br><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;">, the Company recorded compensation expense related to the ESPP of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$37,000</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;color:#000000;text-decoration:none;">$85,000</font><font style="font-family:inherit;font-size:10pt;">, respectively.</font></div><div style="line-height:120%;text-align:center;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;tex
t-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The fair value of rights issued pursuant to the Company's ESPP was estimated on the commencement date of each offering period using the following weighted average assumptions:</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td></td><td width="68.86666649450001px"></td><td width="11.1333333055px"></td><td width="15.99999996px"></td><td width="68.86666649450001px"></td><td width="11.1333333055px"></td><td width="15.99999996px"></td><td width="68.86666649450001px"></td><td width="11.1333333055px"></td><td width="14.666666630000002px"></td><td width="68.86666649450001px"></td><td width="11.1333
333055px"></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="5" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:175.99999956000002px;"><div style="text-align:center;font-size:8pt;width:179.99999956000002px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Three Months Ended</font></div></td><td style="vertical-align:bottom;padding:0px;width:15.99999996px;"><div style="text-align:center;font-size:1pt;width:17.99999996px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="5" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:174.66666623px;"><div style="text-align:center;font-size:8pt;width:178.66666623px"><font style="font-family:inherit;font-s
ize:8pt;background-color:transparent;font-weight:bold;">Six Months Ended</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, 2010</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:15.99999996px;"><div style="text-align:center;font-size:8pt;width:17.99999996px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0p
x;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">June&nbsp;28, 2009</font></div></td><td style="vertical-align:bottom;padding:0px;width:15.99999996px;"><div style="text-align:center;font-size:8pt;width:17.99999996px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, 2010</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:14.666666630000002px;"><div style="text-align:center;font-size:8pt;width:16.66666663px"><font style="font-family:inherit;font-size:8pt;backgro
und-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">June&nbsp;28, 2009</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Expected term (months)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:68.86666649450001px;"><div style="text-align:right;font-size:10pt;width:70.86666649450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">6.00</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.1333333055px;"><
div style="padding-left:0px;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:15.99999996px;"><div style="text-align:left;font-size:1pt;width:17.99999996px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:68.86666649450001px;"><div style="text-align:right;font-size:10pt;width:70.86666649450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">6.00</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.1333333055px;"><div style="padding-left:0px;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:15.99999996px;"><div style="text-align:left;font-size:1pt;width:17.99999996
px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:68.86666649450001px;"><div style="text-align:right;font-size:10pt;width:70.86666649450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">6.00</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.1333333055px;"><div style="padding-left:0px;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:14.666666630000002px;"><div style="text-align:left;font-size:1pt;width:16.66666663px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:68.86666649450001px;"><div style="text-align:right;font-size:10pt;width:70.866666494500
01px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">6.00</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.1333333055px;"><div style="padding-left:0px;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Risk-free interest rate</font></div></td><td style="vertical-align:bottom;padding:0px;width:68.86666649450001px;"><div style="text-align:right;font-size:10pt;width:70.86666649450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">0.22</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style
="vertical-align:bottom;padding:0px;width:15.99999996px;"><div style="overflow:hidden;font-size:10pt;width:17.99999996px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:68.86666649450001px;"><div style="text-align:right;font-size:10pt;width:70.86666649450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">0.29</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:15.99999996px;"><div style="overflow:hidden;font-size:10pt;width:17.99999996px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:68.86666649450001px;"><div style="text-align:right;font-size:10pt;width:70.86666649450001px"><font style=
"font-family:inherit;font-size:10pt;background-color:transparent;">0.22</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:14.666666630000002px;"><div style="overflow:hidden;font-size:10pt;width:16.66666663px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:68.86666649450001px;"><div style="text-align:right;font-size:10pt;width:70.86666649450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">0.29</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td></tr><tr><td style="vertical-align:
bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Expected volatility</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:68.86666649450001px;"><div style="text-align:right;font-size:10pt;width:70.86666649450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">65.00</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:15.99999996px;"><div style="overflow:hidden;font-size:10pt;width:17.99999996px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px
;width:68.86666649450001px;"><div style="text-align:right;font-size:10pt;width:70.86666649450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">126.98</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:15.99999996px;"><div style="overflow:hidden;font-size:10pt;width:17.99999996px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:68.86666649450001px;"><div style="text-align:right;font-size:10pt;width:70.86666649450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">65.00</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;wid
th:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:14.666666630000002px;"><div style="overflow:hidden;font-size:10pt;width:16.66666663px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:68.86666649450001px;"><div style="text-align:right;font-size:10pt;width:70.86666649450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">126.98</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1
0pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Expected dividend</font></div></td><td style="vertical-align:bottom;padding:0px;width:68.86666649450001px;"><div style="text-align:right;font-size:10pt;width:70.86666649450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="padding-left:0px;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:15.99999996px;"><div style="text-align:left;font-size:1pt;width:17.99999996px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:68.86666649450001px;"><div style="text-align:right;font-size:10pt;width:70.86666649450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdas
h;</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="padding-left:0px;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:15.99999996px;"><div style="text-align:left;font-size:1pt;width:17.99999996px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:68.86666649450001px;"><div style="text-align:right;font-size:10pt;width:70.86666649450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="padding-left:0px;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:14.666666630000002px;"><div style="text-align:left;font-size:1pt;width:16.66666663
px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:68.86666649450001px;"><div style="text-align:right;font-size:10pt;width:70.86666649450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="padding-left:0px;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">As of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-si
ze:10pt;">, the unrecognized stock-based compensation expense relating to the Company's ESPP was </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$27,000</font><font style="font-family:inherit;font-size:10pt;"> and is expected to be recognized over a weighted average period of approximately </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">4.5</font><font style="font-family:inherit;font-size:10pt;"> months.</font></div><div style="line-height:120%;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><a name="sF05E8CEC6C8B08B7AD8BFEDDC08B5C0E"></a><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Note&nbsp;10 &mdash; Income Taxes</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font
></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> quarter of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;">, the Company recorded an income tax expense of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$13,000</font><font style="font-family:inherit;font-size:10pt;"> and an income tax benefit of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$15,000</font><font style="
font-family:inherit;font-size:10pt;">, respectively, which consisted primarily of income taxes on foreign operations offset by the monetization of prior year federal research credits. In the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;">, the Company recorded an income tax expense of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$28,000</font><font style="font-family:inherit;font-size:10pt;"> and an income tax benefit of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration
:none;">$11,000</font><font style="font-family:inherit;font-size:10pt;">, respectively, which consisted primarily of income taxes on foreign operations offset by the monetization of prior year federal research credits.</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Based on the available objective evidence, management believes it is more likely than not that the net deferred tax assets will not be fully realizable. Accordingly, with the exception of foreign subsidiaries, the Company has provided a full valuation allowance against the associated deferred tax assets. The Company will continue to assess the realizability of the deferred tax assets in future periods.</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-siz
e:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company had approximately </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$72,000</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$70,000</font><font style="font-family:inherit;font-size:10pt;"> of unrecognized tax benefits at </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">January&nbsp;3, 2010</font><font style="font-family:inherit;font-size:10pt;">, respectively. The Company recognizes interest and pen
alties related to uncertain tax positions in income tax expense. As of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;">, the Company had approximately </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$17,000</font><font style="font-family:inherit;font-size:10pt;"> of accrued interest and penalties related to uncertain tax positions.</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company is no longer subject to U.S. federal, state and non-U.S. income tax audits by taxing authorities for fiscal years through 1992. It is reasonably possible that the Company's unrecognized tax benefits could dec
rease by $32,000 within the next twelve months, depending on the outcome of certain statutes of limitation in foreign jurisdictions.</font></div><div style="line-height:120%;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><a name="s5C1B5EED6EC1473900B3FEDE56CEB4EC"></a><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Note&nbsp;11 &mdash; Information Concerning Product Lines, Geographic Information and Revenue Concentration</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company identifies its business segments based on business activities, management responsibility and geographic location. For all periods presented, the Company operated in a single 
reportable business segment.</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The following is a breakdown of revenue by product line (in thousands):</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td></td><td width="9.3999999765px"></td><td width="66.13333316800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="66.13333316800001px"></td><td width="4.4666666555px"></td><td width="10.
66666664px"></td><td width="9.3999999765px"></td><td width="66.13333316800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="66.13333316800001px"></td><td width="4.4666666555px"></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="7" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:170.66666624px;"><div style="text-align:center;font-size:8pt;width:174.66666624px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Three Months Ended</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div
></td><td colspan="7" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:170.66666624px;"><div style="text-align:center;font-size:8pt;width:174.66666624px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Six Months Ended</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, 2010</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:8pt;width:12.66666664px"><font style=
"font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">June&nbsp;28, 2009</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:8pt;width:12.66666664px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, 2010</font></div></td
><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:8pt;width:12.66666664px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">June&nbsp;28, 2009</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="font-style:italic;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Revenue by product line </font><font style="font-family:inherit;font-size:10pt;font-style:italic;"><sup>(1)</sup></font><font style="font-family:inherit;font-size:10pt;font-style:italic;">:</font></
div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:1pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:1pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-
size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:1pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:1pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:11.999999970000001px;text-align:left;font-size:10pt;"><fo
nt style="font-family:inherit;font-size:10pt;background-color:transparent;">New products</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,297</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:
bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">816</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font sty
le="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">4,371</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:66.13333316800001px;"
><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,474</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:11.999999970000001px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Legacy products</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">4,182</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px s
olid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,095</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-si
ze:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">7,537</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family
:inherit;font-size:10pt;background-color:transparent;">5,989</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:11.999999970000001px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Total revenue</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.133333168000
01px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">6,479</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:66.13333316800001px;"><div style=
"text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,911</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #0000
00;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">11,908</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;bord
er-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">7,463</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">_________________</font></div><div style="line-height:120%;text-align:center;"><font style="font-family:inherit;font-size:5pt;">&nbsp;</font></div><div style="line-height:120%;padding-left:26.666666600000003px;text-align:left;text-indent:-23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><sup>(1)</sup></font><font style=
"font-family:inherit;font-size:3pt;">&nbsp;&nbsp;&nbsp;   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font style="font-family:inherit;font-size:10pt;">For all periods presented: New products represent products introduced since 2005, and include ArcticLink, ArcticLink II, Eclipse&trade; II, PolarPro, PolarPro II, and QuickPCI</font><font style="font-family:inherit;font-size:7pt;"><sup>&reg;</sup></font><font style="font-family:inherit;font-size:10pt;"> II. Legacy products include Eclipse, EclipsePlus, pASIC</font><font style="font-family:inherit;font-size:7pt;"><sup>&reg;</sup></font><font style="font-family:inherit;font-size:10pt;"> 1, pASIC 2, pASIC 3, QuickFC, QuickMIPS, QuickPCI, QuickRAM</font><font style="font-family:inherit;font-size:7pt;"><sup>&reg;</sup></font><font style="font-family:inherit;font-size:10pt;">, and V3, as well as royalty revenue, programming hardware and software.</font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font s
tyle="color:#000000;">15</font></div></div><hr style="page-break-after:always"><div style="vertical-align:inherit;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">QUICKLOGIC CORPORATION</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued) </font></div></div><br><div style="line-height:120%;padding-left:26.666666600000003px;text-align:left;text-indent:-23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="
font-family:inherit;font-size:10pt;">The following is a breakdown of revenue by shipment destination (in thousands):</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td></td><td width="9.3999999765px"></td><td width="66.13333316800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="66.13333316800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="66.13333316800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="66.13333316800001px"></td><td width="4.4666666555px"></td></tr><tr><td styl
e="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="7" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:170.66666624px;"><div style="text-align:center;font-size:8pt;width:174.66666624px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Three Months Ended</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="7" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:170.66666624px;"><div style="text-align:center;font-size:8pt;width:174.66666624px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-we
ight:bold;">Six Months Ended</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, 2010</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:8pt;width:12.66666664px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt
;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">June&nbsp;28, 2009</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:8pt;width:12.66666664px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, 2010</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:8pt;width:12.66666664px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom
;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">June&nbsp;28, 2009</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;font-style:italic;">Revenue by geography:</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:1pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-fa
mily:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:1pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:1pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;
font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:1pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:11.999999970000001px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">United States</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.1333331680000
1px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,054</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,245</font></div></td><td style="vertical-align
:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">4,174</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-
size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">3,455</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="pad
ding-left:11.999999970000001px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Europe</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">854</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:75.5333331445px;"><d
iv style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">564</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,883</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="pad
ding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,561</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:11.999999970000001px;text-align:left;font-size:10pt;"><font style="font-family:inh
erit;font-size:10pt;background-color:transparent;">Taiwan</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">143</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">16</font></div></td><td style="vertical-align:bo
ttom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">194</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;backgrou
nd-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">11</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:11.999999970000001px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Japan</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">727</font></div></td><
td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">449</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;
padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,402</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padd
ing:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">815</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:11.999999970000001px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">China</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,021</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px">
<font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">353</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom
;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">3,031</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">673</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:
inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:11.999999970000001px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Rest of North America</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">84</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;back
ground-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">111</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;bac
kground-color:transparent;">269</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">328</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr
><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:11.999999970000001px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Rest of Asia Pacific</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">596</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bott
om;border-bottom:1px solid #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">173</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">955</font></div></td><td style="vertical-align:bottom;border-bottom:1
px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:75.5333331445px;"><div style="text-align:right;font-size:10pt;width:79.5333331445px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">620</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:11.
999999970000001px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Total revenue</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">6,479</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bot
tom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,911</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;">
<div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:66.13333316800001px;"><div style="text-align:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">11,908</font></div></td>
<td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:66.13333316800001px;"><div style="text-al
ign:right;font-size:10pt;width:68.13333316800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">7,463</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The following distributors and customers accounted for 10% or more of the Company's revenue for the periods presented:</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div st
yle="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td></td><td width="68.86666649450001px"></td><td width="11.1333333055px"></td><td width="10.66666664px"></td><td width="68.86666649450001px"></td><td width="11.1333333055px"></td><td width="10.66666664px"></td><td width="68.86666649450001px"></td><td width="11.1333333055px"></td><td width="10.66666664px"></td><td width="68.86666649450001px"></td><td width="11.1333333055px"></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="5" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:170.66666624px;"><div style="text-align:center;font-size:8pt;width:174.66666624px"><font style="font-family:inherit;font
- -size:8pt;background-color:transparent;font-weight:bold;">Three Months Ended</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="5" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:170.66666624px;"><div style="text-align:center;font-size:8pt;width:174.66666624px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Six Months Ended</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font styl
e="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, 2010</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">June&nbsp;28, 2009</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"
><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, 2010</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">June&nbsp;28, 2009</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Distributor &ldquo;A&rdquo;</font>
</div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:68.86666649450001px;"><div style="text-align:right;font-size:10pt;width:70.86666649450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">25</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:68.86666649450001px;"><div style="text-align:right;font-size:10pt;width:70.86666649450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">19</font></div></td>
<td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:68.86666649450001px;"><div style="text-align:right;font-size:10pt;width:70.86666649450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">25</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;
background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:68.86666649450001px;"><div style="text-align:right;font-size:10pt;width:70.86666649450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">25</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Distributor &ldquo;B&rdquo;</font></div></td><td style="vertical-align:bottom;padding:0px;width:68.86666649450001px;"><div style="te
xt-align:right;font-size:10pt;width:70.86666649450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">12</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:68.86666649450001px;"><div style="text-align:right;font-size:10pt;width:70.86666649450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">20</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10p
t;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:68.86666649450001px;"><div style="text-align:right;font-size:10pt;width:70.86666649450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">10</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:68.86666649450001px;"><div style="text-align:right;font-size:10pt;width:70.
86666649450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">16</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Distributor &ldquo;C&rdquo;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:10pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">*</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px">
<font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:68.86666649450001px;"><div style="text-align:right;font-size:10pt;width:70.86666649450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">11</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:10pt;width:83.99999980000001px"><font style="font-family
:inherit;font-size:10pt;background-color:transparent;">*</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:10pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">*</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Distributor &ldquo;D&rdquo;</font></div></td><td style="vertical-align:bottom;padding:0px;width:68.86666649450001px;"><div style="text-align:right;font-size:10pt;width:70.86666649450001px"><font style="font-family:inherit;font-size:10pt;background-color:transp
arent;">25</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:10pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">*</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:68.86666649450001px;"><div style="text-align:right;font-siz
e:10pt;width:70.86666649450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">20</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:10pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">*</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Custo
mer &ldquo;B&rdquo;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:68.86666649450001px;"><div style="text-align:right;font-size:10pt;width:70.86666649450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">10</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:10pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:10pt;background-co
lor:transparent;">*</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:79.99999980000001px;"><div style="text-align:right;font-size:10pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">*</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:68.86666649450001px;"><div style="text-align:right;font-size:10pt;width:70.86666649450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;"
>14</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">_________________</font></div><div style="line-height:120%;text-align:left;"><font style="font-family:inherit;font-size:5pt;">&nbsp;</font></div><div style="line-height:120%;padding-left:23.999999940000002px;text-align:left;text-indent:-23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">*&nbsp;&nbsp;&nbsp;&nbsp;Represents less than 10% of revenue for the period presented.<br>      </font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-in
dent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The following distributors and customers accounted for 10% or more of the Company's accounts receivable as of the dates presented:</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td></td><td width="95.53333309450001px"></td><td width="11.1333333055px"></td><td width="10.66666664px"></td><td width="95.53333309450001px"></td><td width="11.1333333055px"></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="2" style="v
ertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:106.66666640000001px;"><div style="text-align:center;font-size:8pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, 2010</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:106.66666640000001px;"><div style="text-align:center;font-size:8pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">January&nbsp;3, 2010</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transpar
ent;">Distributor &ldquo;A&rdquo;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:95.53333309450001px;"><div style="text-align:right;font-size:10pt;width:97.53333309450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">24</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:95.53333309450001px;"><div style="text-align:right;font-size:10pt
;width:97.53333309450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">15</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Distributor &ldquo;C&rdquo;</font></div></td><td style="vertical-align:bottom;padding:0px;width:95.53333309450001px;"><div style="text-align:right;font-size:10pt;width:97.53333309450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">11</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><
font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:106.66666640000001px;"><div style="text-align:right;font-size:10pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">*</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Distributor &ldquo;D&rdquo;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:95.53333309450001px;"><div style="text-align:right;font-size:10pt;width:97.53333309450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparen
t;">30</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:95.53333309450001px;"><div style="text-align:right;font-size:10pt;width:97.53333309450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">35</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td></tr></ta
ble></div></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">_________________</font></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:5pt;">&nbsp;</font></div><div style="line-height:120%;padding-left:23.999999940000002px;text-align:left;text-indent:-23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">*&nbsp;&nbsp;&nbsp;&nbsp;Represents less than 10% of accounts receivable as of the date presented.<br>      </font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">As of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;">, less
 than 10% of the Company's long-lived assets, including property and equipment and other assets, were located outside the United States.</font></div><div style="line-height:120%;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><a name="s2ED94C2F0EEB02E4221DFEDEBE36B674"></a><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Note&nbsp;12 &mdash; Commitments and Contingencies</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Certain of the Company's wafer manufacturers require the Company to forecast wafer starts several months in advance. The Company is committed to take delivery of and pay for a portion of forecasted wafer volume.&n
bsp;As of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">January&nbsp;3, 2010</font><font style="font-family:inherit;font-size:10pt;">, the Company had </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$3.2 million</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$2.8 million</font><font style="font-family:inherit;font-size:10pt;">, respectively, of outstanding commitments for the purchase of wafer inventory. </font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;font-size:10pt;t
ext-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">The Company leases, with an option to renew, its primary facility under a non-cancelable operating lease that expires in 2012. In addition, the Company rents development facilities in Canada and India as well as sales offices in Europe and Asia. Total rent expense for the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> quarter of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;"> was approximately </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$118,000</font><font style="font-family:inherit;font
- -size:10pt;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$145,000</font><font style="font-family:inherit;font-size:10pt;">, respectively, and rent </font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">16</font></div></div><hr style="page-break-after:always"><div style="vertical-align:inherit;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">QUICKLOGIC CORPORATION</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued) </fon
t></div></div><br><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> expense for the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;"> was approximately </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$237,000</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$290,000</font><font style="font-family:inherit;font-size:10pt;">, respectively. </font><
/div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Future minimum lease commitments under the Company's operating leases, excluding property taxes and insurance are as follows:</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td></td><td width="9.3999999765px"></td><td width="92.79999976800002px"></td><td width="4.4666666555px"></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-f
amily:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:106.66666640000001px;"><div style="text-align:center;font-size:8pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Operating</font></div><div style="text-align:center;font-size:8pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Leases</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:106.66666640000001px;"><div style="text-align:center;font-size:8pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">(in thousan
ds)</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;text-decoration:underline;">Fiscal Years</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:106.66666640000001px;"><div style="text-align:right;font-size:1pt;width:110.66666640000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Remainder of 2010</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-al
ign:bottom;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">277</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2011</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">536</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div 
style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2012</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">471</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2013</font></div></td><td colspan="2" style="
vertical-align:bottom;background-color:#cceeff;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">40</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2014 and thereafter</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:102.19999974450002px;"><div style="text-align:right;font-size:10pt;width:106.19999974450002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;bo
rder-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:92.79999976800002px;"><div style="text-align:right;font-size:10pt;width:94.79999976800002px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,324</font></div></td><td style="vertical-alig
n:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr></table></div></div><div style="line-height:120%;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><a name="sC3DC4666E843D45E4283FEDFAA922EB0"></a><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Note&nbsp;13 &mdash; Litigation</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Initial Public Offering Securities Litigation</font></div><div style="li
ne-height:120%;text-align:left;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On October&nbsp;26, 2001, a putative securities class action was filed in the U.S. District Court for the Southern District of New York against certain investment banks that underwrote QuickLogic's initial public offering, QuickLogic and some of QuickLogic's officers and directors. The complaint alleges excessive and undisclosed commissions in connection with the allocation of shares of common stock in QuickLogic's initial and secondary public offerings and artificially high prices through &ldquo;tie-in&rdquo; arrangements which required the underwriters' customers to buy shares in the aftermarket at pre-determined prices in violation of the federal securities laws. Plaintiffs seek an unspecified amount of damages on behalf of persons who purchased QuickLogic's stock pursu
ant to the registration statements between October&nbsp;14, 1999 and December&nbsp;6, 2000. Various plaintiffs have filed similar actions asserting virtually identical allegations against over 300 other public companies, their underwriters, and their officers and directors arising out of each company's public offering. These actions, including the action against QuickLogic, have been coordinated for pretrial purposes and captioned </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">In re Initial Public Offering Securities Litigation, 21 MC 92</font><font style="font-family:inherit;font-size:10pt;">, or IPO Securities Litigation.  </font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The parties have reached a global settlement of the litigation. Under
 the settlement, the insurers are to pay the full amount of the settlement share allocated to the Company, and the Company will bear no financial liability. In addition, the Company, as well as the officer and director defendants who were previously dismissed from the action pursuant to tolling agreements, will receive complete dismissals from the case. On October 5, 2009, the Court entered an order granting final approval of the settlement.  Certain objectors have filed appeals. The Company has not accrued any amount related to the proposed settlement because the amount is not reasonably estimable. </font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Patent Infringement Litigation</font><font style="font-family:inherit;font-size:1
0pt;font-style:italic;"> </font></div><div style="line-height:120%;text-align:left;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On August&nbsp;31, 2009, Xpoint Technologies, Inc., served the Company with a complaint for patent infringement. The complaint was filed in the U.S. District Court for the District of Delaware against the Company and a number of other defendant companies in the mobile phone market. The complaint alleges wrongful manufacturing; and using, selling or offering to sell products that infringe patent number 5,913,028 (the &ldquo; '028 Patent&rdquo;) The '028 Patent pertains to a direct data-delivery system and method for program-controlled, direct transfer of data along a bus or data pathway between peer input/output devices in a data-processing apparatus or network. Plaintiff seeks a preliminary and permanent injunction enjoin
ing defendants from further infringement of the claims of the patent, an unspecified amount of damages to compensate for defendants' infringement and treble damages based on defendants' copying and willful infringement of the '028 Patent. On September&nbsp;21, 2009, Plaintiff served the Company with an Amended Complaint for Patent Infringement. The Company believes it has meritorious defenses and intends to defend the action vigorously. </font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">No estimate can be made of the possible loss or possible range of loss associated with the resolution of these contingencies and, accordingly, the Company has not recorded a liability. </font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;"><font style="font-
family:inherit;font-size:10pt;">&nbsp;</font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">17</font></div></div><hr style="page-break-after:always"><div style="vertical-align:inherit;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">QUICKLOGIC CORPORATION</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued) </font></div></div><br><div style="line-height:120%;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">From time to time, the Company
 is involved in legal actions arising in the ordinary course of business, including but not limited to intellectual property infringement and collection matters.&nbsp;Absolute assurance cannot be given that third party assertions will be resolved without costly litigation in a manner that is not adverse to the Company's financial position, results of operations or cash flows or without requiring royalty or other payments in the future which may adversely impact gross profit.</font></div><div style="line-height:120%;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><a name="s7DE538F3181EB9833DD3FEE09A4D7476"></a><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Note&nbsp;14 &mdash; Restructuring Charges</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line
- -height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In April 2008, the Company decided to outsource certain development functions that were previously performed in-house. This reorganization resulted in a headcount reduction of approximately 13% of employees worldwide. In June 2008, the Company announced the completion of its CSSP focused operational realignment which included an additional 17% reduction in headcount worldwide, resulting in a total reduction in worldwide headcount of approximately 30%. The purpose of the operational realignment was to lower fixed costs in order to conserve cash, to reduce the Company's break-even revenue level and enable a quicker return to profitability, to provide optimal profitability scaling with revenue growth and to provide greater headroom for discretionary costs to enable new product revenue growth. Our restructuring liabilities are included in the &ldquo;Accrued Liabilities&rdquo; line item in our
 consolidated balance sheets as of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">January&nbsp;3, 2010</font><font style="font-family:inherit;font-size:10pt;">. The remaining balance was paid out as of July 4, 2010.</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><a name="s980939DB0B956190F98F5D74B9A820C9"></a><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Note&nbsp;15 &mdash; Subsequent Events</font></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">&nbsp;</font></div><div style="line-height:120%;font-size:10pt;text-indent:47.999999880000004px;"><font style="
font-family:inherit;font-size:10pt;">In July 2010, the Company repaid $2.0 million of revolving debt at an interest rate of 4.5%.<br>      </font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">18</font></div></div><hr style="page-break-after:always"><a name="sD0E3EB9C287DD3A2728CFEE1A4A2838A"></a><div style="font-family:Times New Roman;font-size:10pt;vertical-align:inherit;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></div><br><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Item 2.&nbsp;&nbsp; Management's Discussion and Analysis of Financial Condition and Results of Operations</font></div><div style="line-height:120%;text-alig
n:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">The following Management's Discussion and Analysis of Financial Condition and Results of Operations, as well as information contained in &ldquo;Risk Factors&rdquo; in Part II, Item&nbsp;1A and elsewhere in this Quarterly Report on Form&nbsp;10-Q, contains &ldquo;forward-looking statements&rdquo; within the meaning of Section&nbsp;27A of the Securities Act of 1933, as amended, and Section&nbsp;21E of the Securities Exchange Act of 1934, as amended. We intend that these forward-looking statements be subject to the safe harbors created by those provisions. Forward-looking statements are generally written in the future tense and/or are preceded by words such as &ldquo;will,&rdquo; &ldquo;may,&rdquo; &ldquo;should,&rdquo; &ldquo;forecast,&rdquo; &ldquo;could,&rdquo; 
&ldquo;expect,&rdquo; &ldquo;suggest,&rdquo; &ldquo;believe,&rdquo; &ldquo;anticipate,&rdquo; &ldquo;intend,&rdquo; &ldquo;plan,&rdquo; or other similar words. Forward-looking statements include statements regarding (1)&nbsp;the conversion of our design opportunities into revenue, (2)&nbsp;our revenue levels, including the commercial success of our Customer Specific Standard Products, or CSSPs, and new products, (3)&nbsp;the effects of the worldwide economic downturn, (4)&nbsp;our liquidity,&nbsp;(5) our gross profit and breakeven revenue level and factors that affect gross profit and the breakeven revenue level, (6)&nbsp;our level of operating expenses, (7)&nbsp;our research and development efforts, (8)&nbsp;our partners and suppliers and (9)&nbsp;industry trends. The following discussion should be read in conjunction with the attached condensed unaudited consolidated financial statements and notes thereto, and with our audited consolidated financial statements and notes thereto for the fiscal year ended   
</font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;font-style:italic;text-decoration:none;">January&nbsp;3, 2010</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">, found in our Annual Report on Form&nbsp;10-K filed with the Securities and Exchange Commission, or SEC, on </font><font style="font-family:inherit;color:#000000;font-style:italic;text-decoration:none;">March&nbsp;12, 2010</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">.</font></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><a name="s01D466B232DE02723D5D28344621FE51"></a><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Overview</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</fon
t></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">QuickLogic Corporation was founded in 1988 and reincorporated in Delaware in 1999. We develop and market low power customizable semiconductor solutions that enable customers to add new differentiated features to extend battery life in and improve the visual experience with their mobile consumer and mobile enterprise products. We are a fabless semiconductor company that designs, markets and supports primarily, Customer Specific Standard Products, or CSSPs, and, secondarily, Field Programmable Gate Arrays, or FPGAs, associated design software and programming hardware. Our CSSPs are customized semiconductor solutions created from our new solution platforms including  ArcticLink</font><font style="font-family:inherit;font-size:7pt;"><sup>&reg;</sup></font><font style="font-family:inherit;font-size:10pt;">, ArcticLinkII, Eclipse</font><font style="font-family:inherit;fo
nt-size:7pt;"><sup>TM</sup></font><font style="font-family:inherit;font-size:10pt;"> II,  PolarPro</font><font style="font-family:inherit;font-size:7pt;"><sup>&reg;</sup></font><font style="font-family:inherit;font-size:10pt;">, PolarPro II,  and QuickPCI</font><font style="font-family:inherit;font-size:7pt;"><sup>&reg;</sup></font><font style="font-family:inherit;font-size:10pt;"> II (all of which fall into our new product category). Our legacy products include Eclipse, EclipsePlus, pASIC</font><font style="font-family:inherit;font-size:7pt;"><sup>&reg;</sup></font><font style="font-family:inherit;font-size:10pt;"> 1, pASIC 2, pASIC 3, QuickFC, QuickMIPS, QuickPCI, QuickRAM</font><font style="font-family:inherit;font-size:7pt;"><sup>&reg;</sup></font><font style="font-family:inherit;font-size:10pt;">, and V3, as well as royalty revenue, programming hardware and design software. </font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10
pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We market CSSPs to Original Equipment Manufacturers, or OEMs, and Original Design Manufacturers, or ODMs, that offer differentiated mobile products. The market for differentiated mobile devices is highly competitive and dynamic, with short end market product life cycles and rapid obsolescence of existing products.</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our target mobile markets include:</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="position:relative"><div style="line-h
eight:120%;text-align:left;font-size:10pt;position:absolute;padding-left:47.999999880000004px;top:0px;"><font style="font-family:inherit;font-size:10pt;">&bull;&nbsp;&nbsp;&nbsp;&nbsp;</font></div><div style="line-height:120%;padding-left:95.99999976000001px;text-align:left;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;text-indent:-2.66666666px;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Cellular </font><font style="font-family:inherit;font-size:10pt;">- including Smartphones. </font></div></div></div><div style="line-height:120%;padding-left:95.99999976000001px;text-align:left;text-indent:-47.999999880000004px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="position:relative"><div style="line-height:120%;text-align:left;font-size:10pt;position:absolute;padding-left:47.999999880000004px;top:0px;"><font style="font-family:inherit;font-size:10pt;">&bull;&nbsp;&nbsp;&nbsp;&nbsp;</font></div><div style="line-height:120%;p
adding-left:95.99999976000001px;text-align:left;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;text-indent:-2.66666666px;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Computing</font><font style="font-family:inherit;font-size:10pt;"> - including (i)&nbsp;Mobile Internet Devices, or MIDs, Netbooks, Smartbooks, Cloudbooks, Tablets, Ultra Mobile PCs, or UMPCs, and 3G USB broadband data cards and (ii)&nbsp;Mobile Enterprise applications such as USB secure authenticated data cards, personal digital assistants, or PDAs, portable thermal imaging printers, and handheld point-of-sales, or POS, terminals. </font></div></div></div><div style="line-height:120%;padding-left:95.99999976000001px;text-align:left;text-indent:-47.999999880000004px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="position:relative"><div style="line-height:120%;text-align:left;font-size:10pt;position:absolute;padding-left:47.999999880000004px;top:0px;"><font
 style="font-family:inherit;font-size:10pt;">&bull;&nbsp;&nbsp;&nbsp;&nbsp;</font></div><div style="line-height:120%;padding-left:95.99999976000001px;text-align:left;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;text-indent:-2.66666666px;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Consumer Electronics </font><font style="font-family:inherit;font-size:10pt;">- including E-Readers, portable media players, or PMPs, and personal navigation devices, or PNDs. </font></div></div></div><div style="line-height:120%;padding-left:62.666666510000006px;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:31.99999992px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In addition to working directly with our customers, we partner with other companies with expertise in certain technologies to develop additional intellect
ual property, reference platforms and system software to provide application solutions. We also work with mobile processor manufacturers and companies that supply storage, networking or graphics components for embedded systems. The depth of these relationships varies depending on the partner and the dynamics of the end market being targeted, but is typically a co-marketing program that includes joint account calls, promotional activities and/or engineering collaboration and developments, such as reference designs.</font></div><div style="line-height:120%;text-align:left;text-indent:31.99999992px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;font-size:10pt;text-indent:31.99999992px;"><font style="font-family:inherit;font-size:10pt;">During the third quarter of 2009, we introduced the latest in our family of Visual Enhancement Engine, or VEE, and Display Power Optimizer, or DPO, enabled solution platforms - ArcticLink II VX2 and VX4. The eng
ineering validation has been completed for both platforms and the Company expects both platforms to go into production during the third quarter of 2010. CSSPs delivered from the VX2 and VX4 solution platforms will specifically address the power consumption and battery </font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">19</font></div></div><hr style="page-break-after:always"><div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Item 2. Management's Discussion and Analysis of Financial Condition and Results of Ope
rations &mdash; (Continued)</font></div></div><br><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> life issues associated with the market trend for larger, higher resolution displays in mobile products. iSuppli, a market research company, predicts global semiconductor revenue in 2010 to rise to $300.3 billion, with revenue set to rise to $300.3 billion, up 30.6% from $229.9 billion in 2009. Consumer products, particularly in the wireless communications sector, are a strong driver for semiconductor sales. Moreover, the needs of the consumer market have a unique set of requirements. One important trend in the consumer market continues to be towards mobile, handheld devices.</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;fon
t-size:10pt;">Trends in the rapidly growing sub-segments of the consumer market in which we participate include:</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="position:relative"><div style="line-height:120%;text-align:left;font-size:10pt;position:absolute;padding-left:47.999999880000004px;top:0px;"><font style="font-family:inherit;font-size:10pt;">&bull;&nbsp;&nbsp;&nbsp;&nbsp;</font></div><div style="line-height:120%;padding-left:95.99999976000001px;text-align:left;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;text-indent:0px;"><font style="font-family:inherit;font-size:10pt;">Mobile, Handheld Devices: Pyramid Research predicts that the Smartphone segment will capture 37% of the worldwide cell phone market by 2014, a leap from 16% in 2009. Pyramid is predicting more than 1.8 billion Smartphones will be sold over the next five years and the Smar
tphone segment is predicted to be one of the higher growth segments during the current economic downturn. According to figures from researchers at the NPD Group, Android-based handsets accounted for 28% of Smartphone shipments in the US in the first quarter of 2010, ahead of Apple's iPhone. During the first quarter of 2010, QuickLogic announced that it had successfully verified the first complete display controller solution using the Mobile Display Data Interface (MDDI) Type 2 interface for Smartbook, Smartphone, Cloudbook and Tablet applications using Qualcomm chipsets and running the Android operating system. The solution is implemented on an&nbsp;ArcticLink II VX4C&nbsp;solution platform, which includes QuickLogic's VEE and DPO technologies. This allows developers to deliver smoother, more fluid-like movement for multimedia and high-resolution gaming applications. According to Samsung Mobile Display, the world's number one maker of active-matrix OLEDs, &ldquo;OLED screens could appear on 50% of all mobile
 phones within the next five years.&rdquo; To address this industry trend, in April 2010, QuickLogic announced the verification of QuickLogic's VEE and DPO technology with OLED displays. VEE technology greatly enhances the viewability of OLED displays under challenging conditions such as low brightness modes or bright ambient light by dynamically optimizing video characteristics to provide a better user experience. Working in concert with VEE, QuickLogic's DPO technology allows for display brightness to be lowered, consuming less power and extending battery life.</font></div></div></div><div style="line-height:120%;padding-left:95.99999976000001px;text-align:left;text-indent:-47.999999880000004px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="position:relative"><div style="line-height:120%;text-align:left;font-size:10pt;position:absolute;padding-left:47.999999880000004px;top:0px;"><font style="font-family:inherit;font-size:10pt;">&bull;&nbsp;&nbsp;&nbsp;&nbsp;</font></div>
<div style="line-height:120%;padding-left:95.99999976000001px;text-align:left;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;text-indent:0px;"><font style="font-family:inherit;font-size:10pt;">Netbook/Smartbook/Cloudbook/Tablet Category: The Information Network, a market research  company, predicts shipments of the combined Netbook, Smartbook and Cloudbook category will more than quadruple by 2012, rising to 96&nbsp;million units, up from 23.5&nbsp;million in 2009. This segment is largely driven by the desire for a consumer platform that combines the mobile computing and internet experience of notebooks with the day-long battery life of multimedia and Smartphones. During the third quarter of 2009, we announced the availability of a CSSP containing our VEE technology tailored to Intel Atom-based Netbooks that enabled reduced display backlight, delivering longer battery life to the consumer. Also in the third quarter of 2009, we announced a series of new Proven System Blocks, or P
SBs, targeted at augmenting the functionality of ARM-based processors in Smartbooks and Cloudbooks including an I2C master controller, a pulse width modulator (PWM), a PS2 controller, and a low-power matrix keyboard controller. These new PSBs will be used by QuickLogic to deliver CSSPs for Smartbooks, Cloudbook and Tablets. Our DPO technology specifically addresses the power consumption issues associated with the large displays used in the high growth Smartbook, Cloudbooks and Tablet segments, whereas our VEE technology will be used to address the challenges of viewing multimedia content in bright sunlight viewing conditions.  In July of 2010, we announced a collaboration with Texas Advanced Optoelectronic Solutions, Inc. (TAOS) whereby QuickLogic validated and approved the TAOS ambient light sensor products for use on QuickLogic's reference designs platforms.  This collaboration will provide OEMs and ODMs a pre-verified starting point for managing backlight power and bright sunlight viewability through the 
use of QuickLogic and TAOS hardware and software.</font></div></div></div><div style="line-height:120%;padding-left:95.99999976000001px;text-align:left;text-indent:-47.999999880000004px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="position:relative"><div style="line-height:120%;text-align:left;font-size:10pt;position:absolute;padding-left:47.999999880000004px;top:0px;"><font style="font-family:inherit;font-size:10pt;">&bull;&nbsp;&nbsp;&nbsp;&nbsp;</font></div><div style="line-height:120%;padding-left:95.99999976000001px;text-align:left;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;text-indent:0px;"><font style="font-family:inherit;font-size:10pt;">USB-Based 3G Broadband Data Cards: Consumer demand for USB -based 3G data cards are expected to reach nearly 67&nbsp;million units in 2010, according to the market research firm ABI Research. These data cards enable consumers to connect their Notebook, Netbook, Smartbook, Cloudbook or PC to the c
ellular network as a broadband Internet connection. A market trend in USB-Based 3G data cards is for operators to allow consumers to plug microSD memory cards into the modem. To help one of our partners, Icera Inc., quickly address this industry trend, QuickLogic developed multiple CSSPs that enable either microSD or High Speed USB, or both for adopters of Icera's 3G USB modem reference designs. In the first quarter of 2010, QuickLogic announced that its CSSPs are being adopted by Option</font><font style="font-family:inherit;font-size:7pt;"><sup>&reg;</sup></font><font style="font-family:inherit;font-size:10pt;"> Wireless in a line of 3G Cat9 (10.1 Mbps) and Cat10 (14.4 Mbps) HSDPA&nbsp;USB modems - based on the Icera chipset - for wireless communications over cellular networks. Underlying industry trends affecting the large market for mobile </font></div></div></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">20</font></div></div><h
r style="page-break-after:always"><div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations &mdash; (Continued)</font></div></div><br><div style="line-height:120%;padding-left:95.99999976000001px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> devices include the use of platforms to enable rapid product proliferation, the need for high bandwidth solutions enabling mobile Internet and streaming video, miniaturization and the need to increase battery life. Another impor
tant trend is shrinking product life cycles, which drives a need for faster, lower risk product development. There is intense pressure on the total product cost of these devices, including per unit component costs and non-recurring development costs. As more people experience the advantages of a mobile lifestyle at home, they are demanding the same advantages in their professional lives while they are &ldquo;on the go&rdquo;, or mobile. Therefore, we believe that these trends toward mobile, handheld products that have a small form factor and maximize battery life will also be evident in other segments such as industrial, medical and military.&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We have transitioned from being a broad-based supplier of FPGA devices to being a supplier
 of CSSPs primarily to the mobile market. Besides the global economic condition and competition in the semiconductor market, there are two other factors affecting our future growth: the rate at which we can increase revenue through the success of our CSSP strategy and an expected decline in revenue from end-of-life products. Accordingly, we expect our business growth to be driven by CSSPs and  our CSSP revenue growth needs to be strong enough to enable us to achieve profitability while we continue to invest in the development, sales and marketing of our new silicon solution platforms, PSBs, and CSSPs. The gross margin associated with our CSSPs and new products is generally lower than the gross margin of our legacy products, due primarily to the price sensitive nature of the higher volume mobile consumer opportunities that we are pursuing with CSSPs.</font></div><div style="line-height:120%;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height
:120%;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">As a cash conservation measure, we implemented a salary reduction plan for the second half of 2009 and first half of 2010. As a result, except for our CEO who took a 20% reduction, all executives and most of our other employees took a 10% reduction in cash based compensation. In lieu of cash based compensation, participating employees received grants of restricted stock units in July 2009 and again in February 2010 representing 10%, and in the case of our CEO, 20%, of each employee's salary for the remainder of the year. In connection with the Company's cash conservation program, each of our directors received a grant of fully vested RSUs in lieu of cash compensation equal to 20% of his/her base compensation payable for each of the third and fourth quarters of fiscal year 2009 and first and second quarters of 2010.</font></div><div style="line-height:120%;text-indent:35.99999991px;"><font style="font-family:inh
erit;font-size:10pt;">&nbsp;</font></div><a name="s220105BAB53BBF51ED412836DCC952E3"></a><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Critical Accounting Estimates</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The methods, estimates and judgments we use in applying our most critical accounting policies have a significant impact on the results we report in our consolidated financial statements. The SEC has defined critical accounting policies as those that are most important to the portrayal of our financial condition and results of operations and require us to make our most difficult and subjective judgments, often as a result of the&n
bsp;need to make estimates of matters that are inherently uncertain. Based on this definition, our critical policies include revenue recognition, valuation of inventories including identification of excess quantities and product obsolescence, allowance for doubtful accounts, sales returns, valuation of investments, valuation of long-lived assets, valuation of inventories including identification of excess quantities, market value and obsolescence, measurement of stock-based compensation, accounting for income taxes, fair value measurements of financial assets and liabilities, and measuring accrued liabilities. We believe that we apply judgments and estimates in a consistent manner and that such consistent application results in consolidated financial statements and accompanying notes that fairly represent all periods presented. However, any factual errors or errors in these judgments and estimates may have a material impact on our statements of operations and financial condition. For a discussion of critical
 accounting policies and estimates, please see Item&nbsp;7 in our Annual Report on Form&nbsp;10-K for the fiscal year ended </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">January&nbsp;3, 2010</font><font style="font-family:inherit;font-size:10pt;"> filed with the SEC on </font><font style="font-family:inherit;color:#000000;text-decoration:none;">March&nbsp;12, 2010</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><a name="s582C593A1455202AFB4D28395DC30F2F"></a><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Results of Operations</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="l
ine-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The following table sets forth the percentage of revenue for certain items in our statements of operations for the periods indicated:</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">21</font></div></div><hr style="page-break-after:always"><div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;
font-size:10pt;font-weight:bold;">Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations &mdash; (Continued)</font></div></div><br><div style="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td></td><td width="64.399999839px"></td><td width="15.599999961px"></td><td width="10.66666664px"></td><td width="64.399999839px"></td><td width="15.599999961px"></td><td width="10.66666664px"></td><td width="64.399999839px"></td><td width="15.599999961px"></td><td width="10.66666664px"></td><td width="64.399999839px"></td><td width="15.599999961px"></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="5" style="vertical-align:bottom;border-bottom:1px
 solid #000000;padding:0px;width:170.66666624px;"><div style="text-align:center;font-size:8pt;width:174.66666624px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Three Months Ended</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="5" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:170.66666624px;"><div style="text-align:center;font-size:8pt;width:174.66666624px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Six Months Ended</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;
border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, 2010</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">June&nbsp;28, 2009</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font
- -size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, 2010</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:79.99999980000001px;"><div style="text-align:center;font-size:8pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">June&nbsp;28, 2009</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div 
style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Revenue</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">100.0</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:64.399999839px;"><div style="text-align
:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">100.0</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">100.0</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:15.599999961px;"><div style="text-ali
gn:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">100.0</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Cost 
of revenue </font><font style="font-family:inherit;font-size:10pt;"><sup>(1)</sup></font></div></td><td style="vertical-align:bottom;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">39.4</font></div></td><td style="vertical-align:bottom;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">54.6</font></div></td><td style="vertical-align:bot
tom;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">39.2</font></div></td><td style="vertical-align:bottom;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:
10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">45.7</font></div></td><td style="vertical-align:bottom;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Gross profit</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">60.6</font></div></td><td style="ver
tical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">45.4</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-siz
e:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">60.8</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt
;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">54.3</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Operating expenses:</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:79.99999980000001px;"><div style="overflow:hidden;font-size:10pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font
></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:79.99999980000001px;"><div style="overflow:hidden;font-size:10pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:79.99999980000001px;"><div style="overflow:hidden;font-size:10pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style=
"font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:79.99999980000001px;"><div style="overflow:hidden;font-size:10pt;width:83.99999980000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Research and development</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">23.7</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">
%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">64.5</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;backgro
und-color:#cceeff;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">30.2</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">46.8</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px
;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Selling, general and administrative</font></div></td><td style="vertical-align:bottom;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">38.9</font></div></td><td style="vertical-align:bottom;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inher
it;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">93.0</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">40.8</font></div></td><td style="vertical-a
lign:bottom;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">71.7</font></div></td><td style="vertical-align:bottom;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-si
ze:10pt;background-color:transparent;">Loss from operations</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(2.0</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">)%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:64.399999839px;"><div style="text-align:right;fo
nt-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(112.1</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">)%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(10.2</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padd
ing:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">)%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(64.2</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">)%</font></div></td></tr><tr><td style="vertical-align:bottom;padd
ing:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Gain on sale of TowerJazz Semiconductor Ltd. Shares</font></div></td><td style="vertical-align:bottom;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;padding:0px;width:15.599999961px;"><div style="padding-left:0px;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;ba
ckground-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;padding:0px;width:15.599999961px;"><div style="padding-left:0px;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">8.3</font></div></td><td style="vertical-align:bottom;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12
.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;padding:0px;width:15.599999961px;"><div style="padding-left:0px;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Interest expense</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(0.4</font></div></td><td st
yle="vertical-align:bottom;background-color:#cceeff;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">)%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(0.8</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">)%</font></div></td><td style="vertical-align:bottom;background-color
:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(0.4</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">)%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:64.399999839px;"><div style="te
xt-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(0.6</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">)%</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Interest income and other, net</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(0.8</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:15.599999961px;"><div style="text-align:left;pa
dding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">)%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1.5</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;
">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(0.6</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">)%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td
 style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:15.599999961px;"><div style="padding-left:0px;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Loss before income taxes</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(3.2</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">)%</font></div></td><td style="vertical-align:bottom;background-color
:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(111.4</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">)%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:64.399999839px;"><div style="
text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(2.9</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">)%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(64.8</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;widt
h:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">)%</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Provision for (benefit from) income taxes</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">0.2</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;f
ont-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(0.5</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">)%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family
:inherit;font-size:10pt;background-color:transparent;">0.2</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(0.1</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size
:10pt;">)%</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Net loss</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(3.4</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">)%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font
- -size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(110.9</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">)%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.3999
99839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(3.1</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">)%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:64.399999839px;"><div style="text-align:right;font-size:10pt;width:66.399999839px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(64.7</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:3px double #000000;padding:0px;width:15
.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">)%</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">_________________</font></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:5pt;">&nbsp;</font></div><div style="line-height:120%;padding-left:23.999999940000002px;text-align:left;text-indent:-23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><sup>(1)</sup></font><font style="font-family:inherit;font-size:10pt;">&nbsp;&nbsp;&nbsp;&nbsp;The </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> quarter of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:
inherit;font-size:10pt;"> includes </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$58,000</font><font style="font-family:inherit;font-size:10pt;"> of costs for the write-down of inventories and related charges, which represents </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2.0%</font><font style="font-family:inherit;font-size:10pt;"> of revenue. The </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> and the first half of  </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;"> include </font><font style="font-family:Times 
New Roman;color:#000000;font-size:10pt;text-decoration:none;">$73,000</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$236,000</font><font style="font-family:inherit;font-size:10pt;">, respectively, of costs for the write-down of inventories and related charges, which represents </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">0.6%</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">3.2%</font><font style="font-family:inherit;font-size:10pt;"> of revenue, respectively.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><a name="s793257B828B6895C8D59283B4D28E8A6"></a><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font 
style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Three Months Ended </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;font-style:italic;font-weight:bold;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;font-style:italic;font-weight:bold;text-decoration:none;">June&nbsp;28, 2009</font><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;"> </font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Revenue</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-siz
e:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The table below sets forth the changes in revenue for the three months ended </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;"> as compared to the three months ended </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">June&nbsp;28, 2009</font><font style="font-family:inherit;font-size:10pt;"> (in thousands, except percentage data):</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;
"><tr><td></td><td width="9.3999999765px"></td><td width="52.79999986800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="55.5333331945px"></td><td width="11.1333333055px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="52.79999986800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="55.5333331945px"></td><td width="11.1333333055px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="52.79999986800001px"></td><td width="4.4666666555px"></td><td width="7.99999998px"></td><td width="67.53333316450001px"></td><td width="11.1333333055px"></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="13" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:298.66666592px;"><div style="text-
align:center;font-size:8pt;width:302.66666592px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Three&nbsp;Months&nbsp;Ended</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:1pt;width:70.6666665px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:7.99999998px;"><div style="overflow:hidden;font-size:10pt;width:9.99999998px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:78.66666647000001px;"><div style="text-align:center;font-size:1pt;width:82.66666647000001px"><font st
yle="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="6" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:143.99999964px;"><div style="text-align:center;font-size:8pt;width:147.99999964px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, 2010</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="6" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:143.99999964px;"><div style
="text-align:center;font-size:8pt;width:147.99999964px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">June&nbsp;28, 2009</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="6" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:153.33333295px;"><div style="text-align:center;font-size:8pt;width:157.33333295px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Change</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0
px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Amount</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">%&nbsp;of&nbsp;Total</font></div><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Revenues</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style=
"overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Amount</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">%&nbsp;of&nbsp;Total</font></div><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;font-weight:bo
ld;">Revenues</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Amount</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:7.99999998px;"><div style="overflow:hidden;font-size:10pt;width:9.99999998px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:78.66666647000001px;"><div style="text-align:center;font-size:8pt;width:82.66666647000001px"><font style="font-family:inherit;font-size:8pt;background-color:transpa
rent;font-weight:bold;">Percentage</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="font-style:italic;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Revenue by product line </font><font style="font-family:inherit;font-size:10pt;font-style:italic;"><sup>(1)</sup></font><font style="font-family:inherit;font-size:10pt;font-style:italic;">:</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:66.6666665px;"><div style="overflow:hidden;font-size:10pt;width:70.6666665px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:66.6666665
px;"><div style="overflow:hidden;font-size:10pt;width:70.6666665px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:66.6666665px;"><div style="overflow:hidden;font-size:10pt;width:70.6666665px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:66.6666665px;"><div style="overflow:hidden;font-size:10pt;width:70.6666665px"><font style="fo
nt-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:66.6666665px;"><div style="overflow:hidden;font-size:10pt;width:70.6666665px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:7.99999998px;"><div style="overflow:hidden;font-size:10pt;width:9.99999998px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:78.66666647000001px;"><div style="overflow:hidden;font-size:10pt;width:82.66666647000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td
 style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">New products</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,297</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;fon
t-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">35</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:52.79999986800001px;"><di
v style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">816</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">28</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><
td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,481</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:7.99999998px;"><div style="overflow:hidden;font-size:10pt;width:9.99999998px"><font style="font-family:inheri
t;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:67.53333316450001px;"><div style="text-align:right;font-size:10pt;width:69.53333316450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">181</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Legacy products</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:62.199999844500006px;"><div style="text-align:right;font-size:10pt;width:66.19999984450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">4,182</font></di
v></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">65</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-si
ze:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:62.199999844500006px;"><div style="text-align:right;font-size:10pt;width:66.19999984450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,095</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom
;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">72</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:62.199999844500006px;"><div style="text-align:right;font-size:10pt;width:66.19999984450001px"><font style="font-family:inherit;font-size:10pt;background-color:transpar
ent;">2,087</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:7.99999998px;"><div style="overflow:hidden;font-size:10pt;width:9.99999998px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:67.53333316450001px;"><div style="text-align:right;font-size:10pt;width:69.53333316450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">100</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td></tr><tr><td style="vertical-alig
n:bottom;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Total revenue</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">6,479</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-si
ze:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">100</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10
pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,911</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-
family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">100</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-s
ize:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">3,568</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:7.99999998px;"><div style="overflow:hidden;font-size:10pt;width:9.99999998px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:67.53333316450001px;"><div style="text-alig
n:right;font-size:10pt;width:69.53333316450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">123</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">_________________</font></div><div style="line-height:120%;text-align:center;"><font style="font-family:inherit;font-size:5pt;">&nbsp;</font></div><div style="line-height:120%;padding-left:23.999999940000002px;text-align:left;text-indent:-23.999999940000002px;font-size:10pt;"><font style="font-f
amily:inherit;font-size:10pt;"><sup>(1)</sup></font><font style="font-family:inherit;font-size:3pt;">&nbsp;&nbsp;            </font><font style="font-family:inherit;font-size:10pt;">For all periods presented: New products represent products introduced since 2005, and include ArcticLink, ArcticLink II, Eclipse&trade; II, PolarPro, PolarPro II, and QuickPCI</font><font style="font-family:inherit;font-size:7pt;"><sup>&reg;</sup></font><font style="font-family:inherit;font-size:10pt;"> II. Legacy products include Eclipse, EclipsePlus, pASIC</font><font style="font-family:inherit;font-size:7pt;"><sup>&reg;</sup></font><font style="font-family:inherit;font-size:10pt;"> 1, pASIC 2, pASIC 3, QuickFC, QuickMIPS, QuickPCI, QuickRAM</font><font style="font-family:inherit;font-size:7pt;"><sup>&reg;</sup></font><font style="font-family:inherit;font-size:10pt;">, and V3, as well as royalty revenue, programming hardware and software.</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;"><font
 style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We continued production shipments of new CSSPs to the mobile enterprise segment during the second quarter of 2010. The increase in legacy product revenue primarily resulted from the increase in customer demand for pASIC 3 products. One of our U.S. customers, purchasing primarily pASIC 3 devices, accounted for 10% and 8% of total revenue in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> quarters of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-fami
ly:inherit;font-size:10pt;">, respectively. </font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In order to grow our revenue from its current level, we are dependent upon increased revenue from our existing new products,especially revenue from CSSPs designed using our ArcticLink, ArcticLink II, PolarPro and PolarPro II solution platforms and the development of additional new products and CSSPs. </font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;font-size:10pt;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">We continue to seek to expand our revenue, including the pursuit of high volume sales oppor
tunities in the consumer </font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">22</font></div></div><hr style="page-break-after:always"><div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations &mdash; (Continued)</font></div></div><br><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> market segment, by providing CSSPs incorporating intellectual property such as bo
ot from managed NAND or industry standard interfaces such as USB 2.0 OTG, SDIO and integrated drive electronics, or IDE, PS2, I2C, SPI, PWM and keyboard controllers. Our industry is characterized by intense price competition and by lower margins as order volumes increase. While winning large volume sales opportunities will increase our revenue, we believe these opportunities may decrease our gross profit as a percentage of revenue.</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Gross Profit</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style
="font-family:inherit;font-size:10pt;">The table below sets forth the changes in gross profit for the three months ended </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;"> as compared to the three months ended </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">June&nbsp;28, 2009</font><font style="font-family:inherit;font-size:10pt;"> (in thousands, except percentage data):</font></div><div style="line-height:120%;text-align:center;text-indent:37.33333324px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td></td><td width="9.3999999765px"></td><td width="52.79999986800001px"></td><td width="4.4666666555px
"></td><td width="10.66666664px"></td><td width="55.5333331945px"></td><td width="11.1333333055px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="52.79999986800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="55.5333331945px"></td><td width="11.1333333055px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="52.79999986800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="62.199999844500006px"></td><td width="11.1333333055px"></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="13" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:298.66666592px;"><div style="text-align:center;font-size:8pt;width:302.66666592px"><font style="font-family:inherit;font-size:8pt;background-
color:transparent;font-weight:bold;">Three&nbsp;Months&nbsp;Ended</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:1pt;width:70.6666665px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:73.33333315px;"><div style="text-align:center;font-size:1pt;width:77.33333315px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td></tr><
tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="6" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:143.99999964px;"><div style="text-align:center;font-size:8pt;width:147.99999964px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, 2010</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="6" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:143.99999964px;"><div style="text-align:center;font-size:8pt;width:147.99999964px"><font style="font-family:inherit;font-size:8pt;background-col
or:transparent;font-weight:bold;">June&nbsp;28, 2009</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="6" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:150.66666629000002px;"><div style="text-align:center;font-size:8pt;width:154.66666629000002px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Change</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font
- -family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Amount</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">%&nbsp;of&nbsp;Total</font></div><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Revenues</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&n
bsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Amount</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">%&nbsp;of&nbsp;Total</font></div><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Revenues</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div st
yle="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Amount</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:73.33333315px;"><div style="text-align:center;font-size:8pt;width:77.33333315px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Percentage</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cce
eff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Revenue</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">6,479</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;fo
nt-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">100</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.3999999765px;">
<div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,911</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:55.5333331945px;"><div style="text-align:right;
font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">100</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-siz
e:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">3,568</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:62.199999844500006px;"><div style="text-align:right;font-size:10pt;width:64.19999984450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">123</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:11.133
3333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Cost of revenue</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:62.199999844500006px;"><div style="text-align:right;font-size:10pt;width:66.19999984450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,553</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:
transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">39</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:62.199999844500006px;"><div style="text-align:right;font-size:10pt;width:66.19999984450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,589</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px
;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">55</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertic
al-align:bottom;padding:0px;width:62.199999844500006px;"><div style="text-align:right;font-size:10pt;width:66.19999984450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">964</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:62.199999844500006px;"><div style="text-align:right;font-size:10pt;width:64.19999984450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">61</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><
font style="font-family:inherit;font-size:10pt;">%</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Gross Profit</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">3,926</font></div></td><td style="vertical-align:bottom;background-co
lor:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">61</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px
"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,322</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #00
0000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">45</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;f
ont-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,604</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #00000
0;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:62.199999844500006px;"><div style="text-align:right;font-size:10pt;width:64.19999984450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">197</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></
div></td></tr></table></div></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The </font><font style="font-family:inherit;color:#000000;text-decoration:none;">$2.6 million</font><font style="font-family:inherit;font-size:10pt;"> increase in gross profit in the first half of 2010 as compared to the first half of 2009 was mainly due to the increase in revenue in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> quarter of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> as compared to the </font><font style="font-family:Times New Roman;color:#000000;fo
nt-size:10pt;text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> quarter of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;">. The </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> quarter </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> revenue increase was due to a change in product mix towards legacy products which carry higher gross margins than new products; a reduction of excess and obsolescence write-downs in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> quarter of </font><font style="font-family:Times New Roman;co
lor:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> as compared to the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> quarter of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;">; and a change to favorable purchase price variances in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> quarter of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> from unfavorable purchase price variances in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">second</fo
nt><font style="font-family:inherit;font-size:10pt;"> quarter of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;">. The sale of previously reserved inventories contributed </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$112,000</font><font style="font-family:inherit;font-size:10pt;">, or </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">1.7%</font><font style="font-family:inherit;font-size:10pt;"> of revenue, to gross profit in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> quarter of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family
:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$94,000</font><font style="font-family:inherit;font-size:10pt;">, or </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">3.2%</font><font style="font-family:inherit;font-size:10pt;">  of revenue, in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> quarter of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;">. The amortization of TowerJazz prepaid wafer credit increased our cost of revenue by $64,000 in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> quarter of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoratio
n:none;">2009</font><font style="font-family:inherit;font-size:10pt;"> and none in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> quarter of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our semiconductor products have historically had a long product life cycle and obsolescence has not been a significant factor in the valuation of inventories. However, as we pursue opportunities in the mobile market and continue to develop new CSSPs and products, we believe our product life
 cycle will be shorter and increase the potential for obsolescence. We also regularly review the cost of inventories against estimated market value and record a lower of cost or market reserve for inventories that have a cost in excess of estimated market value, which could have a material impact on our gross margin and inventory balances based on additional write-downs to net realizable value or a benefit from inventories previously written down.</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Operating Expenses</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-s
ize:10pt;"><font style="font-family:inherit;font-size:10pt;">The table below sets forth the changes in operating expenses for the three months ended </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;"> as compared to the three months ended </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">June&nbsp;28, 2009</font><font style="font-family:inherit;font-size:10pt;"> (in thousands, except percentage data):</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;width:100%;border-collapse:collapse;"><tr><td></td><td width="9.3999999765px"></td><td width="52.79999986800001px"></td><td width="4.4666666555px"></td><td width="10.6
6666664px"></td><td width="55.5333331945px"></td><td width="11.1333333055px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="52.79999986800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="55.5333331945px"></td><td width="11.1333333055px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="52.79999986800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="51.066666538999996px"></td><td width="15.599999961px"></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="13" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:298.66666592px;"><div style="text-align:center;font-size:8pt;width:302.66666592px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-
weight:bold;">Three&nbsp;Months&nbsp;Ended</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:1pt;width:70.6666665px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:1pt;width:70.6666665px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td></tr><tr><td style="vertical-al
ign:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="6" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:143.99999964px;"><div style="text-align:center;font-size:8pt;width:147.99999964px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, 2010</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="6" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:143.99999964px;"><div style="text-align:center;font-size:8pt;width:147.99999964px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weigh
t:bold;">June&nbsp;28, 2009</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="6" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:143.99999964px;"><div style="text-align:center;font-size:8pt;width:147.99999964px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Change</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;backgro
und-color:transparent;font-weight:bold;">Amount</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">%&nbsp;of&nbsp;Total</font></div><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Revenues</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3"
 style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Amount</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">%&nbsp;of&nbsp;Total</font></div><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Revenues</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;w
idth:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Amount</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Percentage</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-alig
n:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">R&amp;D expense</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,533</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px
"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">24</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font s
tyle="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,877</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">65
</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(344</font></div></td><td style="ver
tical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:51.066666538999996px;"><div style="text-align:right;font-size:10pt;width:53.066666538999996px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(18</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">)%</font></div></td></tr><tr><td style="vertical-align:bottom;paddi
ng:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">SG&amp;A expense</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:62.199999844500006px;"><div style="text-align:right;font-size:10pt;width:66.19999984450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,518</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;fon
t-size:10pt;background-color:transparent;">39</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:62.199999844500006px;"><div style="text-align:right;font-size:10pt;width:66.19999984450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,709</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="ove
rflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">93</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:62.199999844500006px;"><div style="text-align:right;font-size:10pt;width:66.19999984450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(19
1</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:51.066666538999996px;"><div style="text-align:right;font-size:10pt;width:53.066666538999996px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(7</font></div></td><td style="vertical-align:bottom;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">)%</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:19.999999
950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Total operating expenses</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">4,051</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style
="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">63</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;wid
th:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">4,586</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-fa
mily:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">158</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="over
flow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(535</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:
inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:51.066666538999996px;"><div style="text-align:right;font-size:10pt;width:53.066666538999996px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(12</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">)%</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-fami
ly:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Research and Development</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;font-size:10pt;text-indent:37.33333324px;"><font style="font-family:inherit;font-size:10pt;">Our research and development, or R&amp;D, expenses consist primarily of personnel, overhead and other costs associated with engineering process improvements, programmable logic design, CSSP design and software development. The </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$344,000</font><font style="font-family:inherit;font-size:10pt;">  decrease in R&amp;D expenses in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;
text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> quarter of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> as compared to the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> quarter of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;"> is attributable primarily to </font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">23</font></div></div><hr style="page-break-after:always"><div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font s
tyle="font-family:inherit;font-size:10pt;">Table of Contents</font></a></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations &mdash; (Continued)</font></div></div><br><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> $509,000 or 76% decrease in third party chip design costs;and a $38,000 or 31% decrease in depreciation due to decrease in leased software. These decreases were partially offset by an increase of $123,000 or 30% in compensation expenses due to a higher headcount; a $33,000 or 185% increase in travel and entertainment; a $41,000 or 30% increase in stock-based compensation.  The increase in stock-based compensation expenses was due to the issuance of RSUs to employees in lieu of 10
% of their cash compensation.</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Selling, General and Administrative Expense</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our selling, general and administrative, or SG&amp;A, expenses consist primarily of personnel and related overhead costs for sales, marketing, finance, administration, human resources and general management.&nbsp;The </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$191,000</font><font style="font-family:inh
erit;font-size:10pt;"> decrease in SG&amp;A expenses in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> quarter of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> as compared to the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> quarter of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;"> resulted from our effort to realign resources with our expected revenue outlook and was primarily due to a $288,000 or 21% decrease in compensation expenses as a result of headcount reductions; a $80,000 or 20% decrease in occupancy costs; a $50,000 or 86% decrease in d
epreciation expenses; and a $30,000 or 30% decrease in equipment and supplies.  These decreases were partially offset by a $197,000 or 35% increase in outside services which include sales commissions and legal costs and a $57,000 or 16% increase in stock-based compensation.  The increase in stock-based compensation expense was due to the issuance of RSUs to employees in lieu of 10% of their cash compensation (20% in the case of the Company's CEO).</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Interest  Expense and Interest Income and Other, net</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324p
x;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The table below sets forth the changes in Interest and Other Income (Expense), net, for the three months ended </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;"> as compared to the three months ended </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">June&nbsp;28, 2009</font><font style="font-family:inherit;font-size:10pt;"> (in thousands, except percentage data):</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td></td><td width="9.3999999765px"></td><td width="44.79
9999888px"></td><td width="4.4666666555px"></td><td width="13.333333300000001px"></td><td width="9.3999999765px"></td><td width="43.46666655800001px"></td><td width="4.4666666555px"></td><td width="9.33333331px"></td><td width="9.3999999765px"></td><td width="40.799999898px"></td><td width="4.4666666555px"></td><td width="13.333333300000001px"></td><td width="48.399999879px"></td><td width="15.599999961px"></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="7" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:129.33333301000002px;"><div style="text-align:center;font-size:8pt;width:133.33333301000002px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Three Months Ended</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.33333331px;"><d
iv style="overflow:hidden;font-size:10pt;width:11.33333331px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="6" style="vertical-align:bottom;padding:0px;width:131.99999967000002px;"><div style="text-align:center;font-size:8pt;width:135.99999967000002px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Change</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:58.66666652000001px;"><div style="text-align:center;font-size:8pt;width:62.66666652000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, 2010</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:13.333333300000001px;"><d
iv style="overflow:hidden;font-size:10pt;width:15.333333300000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:57.333333190000005px;"><div style="text-align:center;font-size:8pt;width:61.333333190000005px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">June&nbsp;28, 2009</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.33333331px;"><div style="overflow:hidden;font-size:10pt;width:11.33333331px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:54.66666653px;"><div style="text-align:center;font-size:8pt;width:58.66666653px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Amount</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padd
ing:0px;width:13.333333300000001px;"><div style="overflow:hidden;font-size:10pt;width:15.333333300000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:63.99999984px;"><div style="text-align:center;font-size:8pt;width:67.99999984px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Percentage</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="overflow:hidden;height:18.66666662px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:58.66666652000001px;"><div style="overflow:hidden;height:18.66666662px;font-size:10pt;width:62.66666652000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color
:#cceeff;padding:0px;width:13.333333300000001px;"><div style="overflow:hidden;height:18.66666662px;font-size:10pt;width:15.333333300000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:57.333333190000005px;"><div style="overflow:hidden;height:18.66666662px;font-size:10pt;width:61.333333190000005px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.33333331px;"><div style="overflow:hidden;height:18.66666662px;font-size:10pt;width:11.33333331px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:54.66666653px;"><div style="overflow:hidden;height:18.66666662px;font-size:10pt;width:58.66666653px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertic
al-align:bottom;background-color:#cceeff;padding:0px;width:13.333333300000001px;"><div style="overflow:hidden;height:18.66666662px;font-size:10pt;width:15.333333300000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:63.99999984px;"><div style="overflow:hidden;height:18.66666662px;font-size:10pt;width:67.99999984px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Interest expense</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:44.799999888px;"><div style
="text-align:right;font-size:10pt;width:46.799999888px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(27</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;padding:0px;width:13.333333300000001px;"><div style="overflow:hidden;font-size:10pt;width:15.333333300000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.46666655800001px;"><div style="text-align:right;font-size:10pt;width:45.46666655800001px"><font style="font-family:inherit;font-size:10pt;background-color:
transparent;">(23</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.33333331px;"><div style="overflow:hidden;font-size:10pt;width:11.33333331px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:40.799999898px;"><div style="text-align:right;font-size:10pt;width:42.799999898px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(4</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px
;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;padding:0px;width:13.333333300000001px;"><div style="overflow:hidden;font-size:10pt;width:15.333333300000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:48.399999879px;"><div style="text-align:right;font-size:10pt;width:50.399999879px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">17</font></div></td><td style="vertical-align:bottom;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Interest income and other, net</font></d
iv></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:54.1999998645px;"><div style="text-align:right;font-size:10pt;width:58.1999998645px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(50</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:13.333333300000001px;"><div style="overflow:hidden;font-size:10pt;width:15.333333300000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:52.8666665345px;"><div style="text-align:right;font-size:10pt;width:56
.8666665345px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">45</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.33333331px;"><div style="overflow:hidden;font-size:10pt;width:11.33333331px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:50.1999998745px;"><div style="text-align:right;font-size:10pt;width:54.1999998745px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(95</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;">
<div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:13.333333300000001px;"><div style="overflow:hidden;font-size:10pt;width:15.333333300000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:48.399999879px;"><div style="text-align:right;font-size:10pt;width:50.399999879px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(211</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">)%</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-famil
y:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:44.799999888px;"><div style="text-align:right;font-size:10pt;width:46.799999888px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(77</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;padding:0px;width:13.333333300000001px;"><div style="overflow:hidden;font-size:10pt;width:15.333333300000001px"><font style="font-family:in
herit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:43.46666655800001px;"><div style="text-align:right;font-size:10pt;width:45.46666655800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">22</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.33333331px;"><div style="overflow:hidden;font-size:10pt;width:11.33333331px"><fon
t style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:40.799999898px;"><div style="text-align:right;font-size:10pt;width:42.799999898px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(99</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;padding:0px;width:13.333333300000001px;"><div style="overflow:hidden;font-size:10pt;width:15.333333300000001px"><font style="font-family:inherit;fon
t-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:48.399999879px;"><div style="text-align:right;font-size:10pt;width:50.399999879px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(450</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">)%</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The decrease in interest expense is due primarily to the reduction of our average debt obligation to $2.6 millio
n in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> quarter of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> from $3.1 million in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> quarter of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;">. The decrease in interest income and other, net was due primarily to the interest rate decrease and foreign exchange losses in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> quarter of </font><f
ont style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> as compared to the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> quarter of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We conduct a portion of our research and development activities in Canada and India and we have sales and marketing activities in various countries outside of the United States. Most of these international 
expenses are incurred in local currency. Foreign currency transaction gains and losses are included in interest and other income (expense), net, as they occur. We do not use derivative financial instruments to hedge our exposure to fluctuations in foreign currency and, therefore, our results of operations are and will continue to be susceptible to fluctuations in foreign exchange gains or losses.</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Provision for (Benefit from) Income Taxes</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size
:10pt;"><font style="font-family:inherit;font-size:10pt;">The table below sets forth the changes in provision for Income Taxes from the three months ended </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;"> as compared to the three months ended </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">June&nbsp;28, 2009</font><font style="font-family:inherit;font-size:10pt;"> (in thousands, except percentage data):</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td></td><td width="9.3999999765px"></td><td width="42.133333228000005p
x"></td><td width="4.4666666555px"></td><td width="11.999999970000001px"></td><td width="9.3999999765px"></td><td width="35.466666578px"></td><td width="4.4666666555px"></td><td width="9.33333331px"></td><td width="9.3999999765px"></td><td width="36.799999908px"></td><td width="4.4666666555px"></td><td width="6.666666650000001px"></td><td width="47.066666549px"></td><td width="15.599999961px"></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="7" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:117.33333303999999px;"><div style="text-align:center;font-size:8pt;width:121.33333303999999px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Three Months Ended</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="ov
erflow:hidden;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="6" style="vertical-align:bottom;padding:0px;width:113.73333304900001px;"><div style="text-align:center;font-size:8pt;width:117.73333304900001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Change</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:55.99999986px;"><div style="text-align:center;font-size:8pt;width:59.99999986px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, 2010</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:11.999999970000001px;"><div style="text-align:ce
nter;font-size:1pt;width:13.999999970000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:49.333333210000006px;"><div style="text-align:center;font-size:8pt;width:53.333333210000006px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">June&nbsp;28, 2009</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.33333331px;"><div style="overflow:hidden;font-size:10pt;width:11.33333331px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:50.66666654px;"><div style="text-align:center;font-size:8pt;width:54.66666654px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Amount</font></div></td><td style="vertical-align:bottom;border-top
:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:6.666666650000001px;"><div style="overflow:hidden;font-size:10pt;width:8.66666665px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:62.666666510000006px;"><div style="text-align:center;font-size:8pt;width:66.66666651px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Percentage</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Provision for (benefit from) income taxes</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999
999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:42.133333228000005px;"><div style="text-align:right;font-size:10pt;width:44.133333228000005px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">13</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.999999970000001px;"><div style="overflow:hidden;font-size:10pt;width:13.999999970000001px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;b
order-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:35.466666578px;"><div style="text-align:right;font-size:10pt;width:37.466666578px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(15</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.33333331px;"><div style="overflow:hidden;font-size:10pt;width:11.33333331px"><font style="font-fami
ly:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:36.799999908px;"><div style="text-align:right;font-size:10pt;width:38.799999908px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">28</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;paddin
g:0px;width:6.666666650000001px;"><div style="overflow:hidden;font-size:10pt;width:8.66666665px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:47.066666549px;"><div style="text-align:right;font-size:10pt;width:49.066666549px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(187</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">)%</font></div></td></tr></table></div></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;font-size:10pt;text-indent:35.99999991px;"><font style="font-family:i
nherit;font-size:10pt;">The provision for (benefit from) income taxes for the second quarters of 2010 and 2009 are primarily for our foreign </font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">24</font></div></div><hr style="page-break-after:always"><div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations &mdash; (Continued)</font></div></div><br><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit
;font-size:10pt;"> operations which are cost-plus entities offset by the monetization of prior year federal research credits. As of the end of the second quarter of 2010, our ability to utilize our income tax loss carryforwards in future periods is uncertain and, accordingly, we recorded a full valuation allowance against the related US tax provision. We will continue to assess the realizability of deferred tax assets in future periods.</font></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><a name="sA3CFAAFC90879306A2C4283D2828A8C2"></a><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:Times New Roman;color:#000000;font-size:10pt;font-style:italic;font-weight:bold;text-decoration:none;">Six Months Ended</font><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;"> </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;font-style:it
alic;font-weight:bold;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;font-style:italic;font-weight:bold;text-decoration:none;">June&nbsp;28, 2009</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;"> </font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Revenue</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The table below sets forth the changes i
n revenue for the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">six</font><font style="font-family:inherit;font-size:10pt;"> months ended </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;"> as compared to the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">six</font><font style="font-family:inherit;font-size:10pt;"> months ended </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">June&nbsp;28, 2009</font><font style="font-family:inherit;font-size:10pt;"> (in thousands, except percentage data):</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style=
"font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td></td><td width="9.3999999765px"></td><td width="52.79999986800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="55.5333331945px"></td><td width="11.1333333055px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="52.79999986800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="55.5333331945px"></td><td width="11.1333333055px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="52.79999986800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="55.5333331945px"></td><td width="11.1333333055px"></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="13" s
tyle="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:298.66666592px;"><div style="text-align:center;font-size:8pt;width:302.66666592px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Six Months Ended</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:1pt;width:70.6666665px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width
:66.6666665px;"><div style="text-align:center;font-size:1pt;width:70.6666665px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="6" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:143.99999964px;"><div style="text-align:center;font-size:8pt;width:147.99999964px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, 2010</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="6" style="vertical-align:bottom;border-top:1px sol
id #000000;border-bottom:1px solid #000000;padding:0px;width:143.99999964px;"><div style="text-align:center;font-size:8pt;width:147.99999964px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">June&nbsp;28, 2009</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="6" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:143.99999964px;"><div style="text-align:center;font-size:8pt;width:147.99999964px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Change</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></t
d><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Amount</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">%&nbsp;of&nbsp;Total</font></div><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Revenues</font><
/div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Amount</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">%&nbsp;of&nbsp;Total</font></div><div style="text-align:center;font-si
ze:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Revenues</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Amount</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.666666
5px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Percentage</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="font-style:italic;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Revenue by product line </font><font style="font-family:inherit;font-size:10pt;font-style:italic;"><sup>(1)</sup></font><font style="font-family:inherit;font-size:10pt;font-style:italic;">:</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:66.6666665px;"><div style="overflow:hidden;font-size:10pt;width:70.6666665px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></di
v></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:66.6666665px;"><div style="overflow:hidden;font-size:10pt;width:70.6666665px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:66.6666665px;"><div style="overflow:hidden;font-size:10pt;width:70.6666665px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" st
yle="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:66.6666665px;"><div style="overflow:hidden;font-size:10pt;width:70.6666665px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:66.6666665px;"><div style="overflow:hidden;font-size:10pt;width:70.6666665px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2
" style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:66.6666665px;"><div style="overflow:hidden;font-size:10pt;width:70.6666665px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">New products</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">4,371</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left
:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">37</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bot
tom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,474</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;back
ground-color:transparent;">20</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,897</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padd
ing-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">197</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Legacy products</font></div></td><td colspan="2
" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:62.199999844500006px;"><div style="text-align:right;font-size:10pt;width:66.19999984450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">7,537</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">63</fo
nt></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:62.199999844500006px;"><div style="text-align:right;font-size:10pt;width:66.19999984450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">5,989</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font sty
le="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">80</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><f
ont style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:62.199999844500006px;"><div style="text-align:right;font-size:10pt;width:66.19999984450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,548</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:55.5333331945px;"><div style="text-align:right;
font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">26</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Total revenue</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px d
ouble #000000;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">11,908</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">100</font></div></td><td style="vertical-align:bottom;border
- -bottom:3px double #000000;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">7,463</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;paddi
ng:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">100</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font sty
le="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">4,445</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;wid
th:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">60</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">_________________</font></div><div style="line-height:120
%;text-align:center;"><font style="font-family:inherit;font-size:5pt;">&nbsp;</font></div><div style="line-height:120%;padding-left:26.666666600000003px;text-align:left;text-indent:-23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><sup>(1)</sup></font><font style="font-family:inherit;font-size:3pt;">&nbsp;&nbsp;&nbsp;   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font style="font-family:inherit;font-size:10pt;">For all periods presented: New products represent products introduced since 2005, and include ArcticLink, ArcticLink II, Eclipse&trade; II, PolarPro, PolarPro II, and QuickPCI</font><font style="font-family:inherit;font-size:7pt;"><sup>&reg;</sup></font><font style="font-family:inherit;font-size:10pt;"> II. Legacy products include Eclipse, EclipsePlus, pASIC</font><font style="font-family:inherit;font-size:7pt;"><sup>&reg;</sup></font><font style="font-family:inherit;font-size:10pt;"> 1, pASIC 2, pASIC 3, QuickFC, QuickMIPS, QuickPCI, QuickRAM</font><
font style="font-family:inherit;font-size:7pt;"><sup>&reg;</sup></font><font style="font-family:inherit;font-size:10pt;">, and V3, as well as royalty revenue, programming hardware and software.</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In the first quarter of 2010, we began production shipments of new CSSPs to the mobile enterprise segment. We continued the shipments of CSSPs to the mobile consumer market during the second quarter of 2010. The increase in legacy product revenue primarily resulted from the increase in customer demand for pASIC 3 products. One of our U.S. customers, purchasing primarily pASIC 3 devices, accounted for 9% and 14% of total revenue in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-d
ecoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;">, respectively. </font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In order to grow our revenue from its current level, we are dependent upon increased revenue from our existing new products, especially revenue from CSSPs designed using our ArcticLink, ArcticLink II, PolarPro and PolarPro II solution platforms and the development of additional new products and CSS
Ps. </font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We continue to seek to expand our revenue, including the pursuit of high volume sales opportunities in the consumer market segment, by providing CSSPs incorporating intellectual property such as boot from managed NAND or industry standard interfaces such as USB 2.0 OTG, SDIO and integrated drive electronics, or IDE, PS2, I2C, SPI, PWM and keyboard controllers. Our industry is characterized by intense price competition and by lower margins as order volumes increase. While winning large volume sales opportunities will increase our revenue, we believe these opportunities may decrease our gross profit as a percentage of revenue.</font></div><div style="line-height:120%;text-align:left;"><font style="font-family:inherit;f
ont-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Gross Profit</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The table below sets forth the changes in gross profit for the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">six</font><font style="font-family:inherit;font-size:10pt;"> months ended </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;"> as compared to the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">
six</font><font style="font-family:inherit;font-size:10pt;"> months ended </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">June&nbsp;28, 2009</font><font style="font-family:inherit;font-size:10pt;"> (in thousands, except percentage data):</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">25</font></div></div><hr style="page-break-after:always"><div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;font-size:10pt;"><f
ont style="font-family:inherit;font-size:10pt;font-weight:bold;">Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations &mdash; (Continued)</font></div></div><br><div style="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td></td><td width="9.3999999765px"></td><td width="52.79999986800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="55.5333331945px"></td><td width="11.1333333055px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="52.79999986800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="55.5333331945px"></td><td width="11.1333333055px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="52.79999986800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width
="55.5333331945px"></td><td width="11.1333333055px"></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="13" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:298.66666592px;"><div style="text-align:center;font-size:8pt;width:302.66666592px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Six Months Ended</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:1pt;width:70.6666665px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold
;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:1pt;width:70.6666665px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="6" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:143.99999964px;"><div style="text-align:center;font-size:8pt;width:147.99999964px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, 2010</font></div></td><td
 style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="6" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:143.99999964px;"><div style="text-align:center;font-size:8pt;width:147.99999964px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">June&nbsp;28, 2009</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="6" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:143.99999964px;"><div style="text-align:center;font-size:8pt;width:147.99999964px"><font style="font-family:inherit;font-size
:8pt;background-color:transparent;font-weight:bold;">Change</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Amount</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="tex
t-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">%&nbsp;of&nbsp;Total</font></div><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Revenues</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Amount</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" 
style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">%&nbsp;of&nbsp;Total</font></div><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Revenues</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Amount</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:10.66666664px;"><div style="o
verflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Percentage</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Revenue</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:52.79999986800001px;"><div style="text-align:right
;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">11,908</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">100</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;fo
nt-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">7,463</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inh
erit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">100</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style=
"vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">4,445</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:in
herit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">60</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Cost of revenue</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:62.199999844500006px;"><div style="text-align:right;font-size:10pt;width:66.19999984450001px"><font style="font-family:inherit;font-size
:10pt;background-color:transparent;">4,669</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">39</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="ove
rflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:62.199999844500006px;"><div style="text-align:right;font-size:10pt;width:66.19999984450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">3,408</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">46</font></div></td><td styl
e="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:62.199999844500006px;"><div style="text-align:right;font-size:10pt;width:66.19999984450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,261</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-fami
ly:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">37</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Gross Profit</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font st
yle="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">7,239</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;borde
r-bottom:3px double #000000;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">61</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font
- -family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">4,055</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:
0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">54</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</
font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">3,184</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:55.5333331945px;"><div sty
le="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">79</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The </font><font style="font-family:inherit;color:#000000;text-decoration:none;">$3.2 million</font><font style="font-family:inherit;font-size:10pt;"> increase in gross profit in the first half of 2010 as compared to the first half of 2009 was mainly due to the i
ncrease in revenue in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> as compared to the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;">. The </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:
inherit;font-size:10pt;"> revenue increase was due to a change in product mix towards legacy products which carry higher gross margins than new products; a reduction of excess and obsolescence write-downs in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> as compared to the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;">; and a change to favorable purchase price variances in the </font><font style="font-family:Times New Roman;color:#000000;font-
size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> from unfavorable purchase price variances in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;">. The sale of previously reserved inventories contributed $</font><font style="font-family:inherit;color:#000000;text-decoration:none;">300,000</font><font style="font-family:inherit;font-size:10pt;">, or </font><font style="font-family:inherit;color:#000000;text-decoration:none;">2.5%</font><font style="font-family:inherit;font-size:10pt;"> of revenue, to gross profit in t
he </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> and $</font><font style="font-family:inherit;color:#000000;text-decoration:none;">215,000</font><font style="font-family:inherit;font-size:10pt;"> or </font><font style="font-family:inherit;color:#000000;text-decoration:none;">2.9%</font><font style="font-family:inherit;font-size:10pt;"> of revenue, in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;">. The amortization of TowerJazz prepaid wafer c
redit increased our cost of revenue by $157,000 in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;"> and none in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inh
erit;font-size:10pt;">Our semiconductor products have historically had a long product life cycle and obsolescence has not been a significant factor in the valuation of inventories. However, as we pursue opportunities in the mobile market and continue to develop new CSSPs and products, we believe our product life cycle will be shorter and increase the potential for obsolescence. We also regularly review the cost of inventories against estimated market value and record a lower of cost or market reserve for inventories that have a cost in excess of estimated market value, which could have a material impact on our gross margin and inventory balances based on additional write-downs to net realizable value or a benefit from inventories previously written down.</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font sty
le="font-family:inherit;font-size:10pt;font-style:italic;">Operating Expenses</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The table below sets forth the changes in operating expenses for the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">six</font><font style="font-family:inherit;font-size:10pt;"> months ended </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;"> as compared to the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">six</font><font style="font-family:inherit;font-size:10pt;"> months ended </font><font style="font-family:Times New Roman;color
:#000000;font-size:10pt;text-decoration:none;">June&nbsp;28, 2009</font><font style="font-family:inherit;font-size:10pt;"> (in thousands, except percentage data):</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td></td><td width="9.3999999765px"></td><td width="52.79999986800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="55.5333331945px"></td><td width="11.1333333055px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="52.79999986800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="55.5333331945px"></td><td width="11.1333333055px"></td><td width="10.66666664px"></td><td width=
"9.3999999765px"></td><td width="52.79999986800001px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="51.066666538999996px"></td><td width="15.599999961px"></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="13" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:298.66666592px;"><div style="text-align:center;font-size:8pt;width:302.66666592px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Six Months Ended</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:66.6666665px;"><div style="text-alig
n:center;font-size:1pt;width:70.6666665px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:1pt;width:70.6666665px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="6" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:143.99999964px;"><div style="text-align:center;font-size:8pt;width:147.99999964px
"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, 2010</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="6" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:143.99999964px;"><div style="text-align:center;font-size:8pt;width:147.99999964px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">June&nbsp;28, 2009</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="6" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:
0px;width:143.99999964px;"><div style="text-align:center;font-size:8pt;width:147.99999964px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Change</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Amount</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="2" sty
le="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">%&nbsp;of&nbsp;Total</font></div><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Revenues</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Amount</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflo
w:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">%&nbsp;of&nbsp;Total</font></div><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Revenues</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">A
mount</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:66.6666665px;"><div style="text-align:center;font-size:8pt;width:70.6666665px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Percentage</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">R&amp;D expense</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-famil
y:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">3,593</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style=
"font-family:inherit;font-size:10pt;background-color:transparent;">30</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10p
t;background-color:transparent;">3,489</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">47</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="ve
rtical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">104</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</fon
t></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:51.066666538999996px;"><div style="text-align:right;font-size:10pt;width:53.066666538999996px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">3</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">
SG&amp;A expense</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:62.199999844500006px;"><div style="text-align:right;font-size:10pt;width:66.19999984450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">4,853</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">41</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><
div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:62.199999844500006px;"><div style="text-align:right;font-size:10pt;width:66.19999984450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">5,352</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style=
"vertical-align:bottom;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">72</font></div></td><td style="vertical-align:bottom;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:62.199999844500006px;"><div style="text-align:right;font-size:10pt;width:66.19999984450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(499</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width
:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:51.066666538999996px;"><div style="text-align:right;font-size:10pt;width:53.066666538999996px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(9</font></div></td><td style="vertical-align:bottom;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">)%</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:19.999999950000003px;text-align:left;font-size:10pt;"><font style="font-family
:inherit;font-size:10pt;background-color:transparent;">Total operating expenses</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">8,446</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td st
yle="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">71</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:1
2.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">8,841</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vert
ical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:55.5333331945px;"><div style="text-align:right;font-size:10pt;width:57.5333331945px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">119</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:11.1333333055px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:13.1333333055px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-fam
ily:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:52.79999986800001px;"><div style="text-align:right;font-size:10pt;width:54.79999986800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(395</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align
:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="overflow:hidden;font-size:10pt;width:12.66666664px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:51.066666538999996px;"><div style="text-align:right;font-size:10pt;width:53.066666538999996px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(4</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">)%</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height
:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Research and Development</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our R&amp;D expenses consist primarily of personnel, overhead and other costs associated with engineering process improvements, programmable logic design, CSSP design and software development. The </font><font style="font-family:inherit;color:#000000;text-decoration:none;">$104,000</font><font style="font-family:inherit;font-size:10pt;"> increase in R&amp;D expenses in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-famil
y:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> as compared to the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;"> is attributable primarily to a $258,000 or 99% increase in purchased IP; a $194,000 or 22% increase in compensation expenses as a result of additional headcount; a $127,000 or 56% increase in stock-based compensation expenses; a $56,000 or 99% increase in travel and entertainment.  These increases were partially offset by a decrease of $508,000 in outside services due to a reduced level of third party chip design costs;  a $61,000 or 9% decrease in allocation expenses for facility; and other corporate costs.  The increase in stock-ba
sed compensation expenses was due to the issuance of RSUs to employees in lieu of 10% of their cash compensation.</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Selling, General and Administrative Expense</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;font-size:10pt;text-indent:37.33333324px;"><font style="font-family:inherit;font-size:10pt;">Our SG&amp;A expenses consist primarily of personnel and related overhead costs for sales, marketing, finance, administration, human resources and general management.&nbsp;The </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt
;text-decoration:none;">$499,000</font><font style="font-family:inherit;font-size:10pt;"> decrease in SG&amp;A expenses in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> as compared to the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;"> resulted from our effort to realign resources with our expected revenue outlook and was primarily due to a $780,000 or 27% decrease in compensation expenses due to headcount reduction;  a $113,000 or 15% </font>
</div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">26</font></div></div><hr style="page-break-after:always"><div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations &mdash; (Continued)</font></div></div><br><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> decrease in occupancy costs;  a $104,000  or 85% decrease in depreciation expenses; and a $50,000 or 25% decrease
 in equipment and supplies.  These decreases were partially offset by a $265,000 or 25% increase in outside services which include sales commissions and legal costs; a $243,000 or 40% increase in stock-based compensation; a $29,000 or 8% increase in travel and entertainment; $14,000 or 2% increase in allocations for facility; and other corporate costs. The increase in stock-based compensation expense was due to the issuance of RSUs to employees in lieu of 10% of their cash compensation (20% in the case of the Company's CEO)</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Interest  Expense and Interest Income and Other, net</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-famil
y:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The table below sets forth the changes in Interest and Other Income (Expense), net, for the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">six</font><font style="font-family:inherit;font-size:10pt;"> months ended </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;"> as compared to the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">six</font><font style="font-family:inherit;font-size:10pt;"> months ended </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">June&nbsp;28, 2009</font><font style="font-family:inherit;font-size:10pt;"> (in thousands, except percent
age data):</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td></td><td width="9.3999999765px"></td><td width="58.13333318800001px"></td><td width="4.4666666555px"></td><td width="5.33333332px"></td><td width="9.3999999765px"></td><td width="51.466666538000005px"></td><td width="4.4666666555px"></td><td width="14.666666630000002px"></td><td width="9.3999999765px"></td><td width="42.133333228000005px"></td><td width="4.4666666555px"></td><td width="9.33333331px"></td><td width="45.733333219px"></td><td width="15.599999961px"></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;backgr
ound-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="7" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:142.66666631px;"><div style="text-align:center;font-size:8pt;width:146.66666631px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Six Months Ended</font></div></td><td style="vertical-align:bottom;padding:0px;width:14.666666630000002px;"><div style="overflow:hidden;font-size:10pt;width:16.66666663px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="6" style="vertical-align:bottom;padding:0px;width:126.66666635000001px;"><div style="text-align:center;font-size:8pt;width:130.66666635px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Change</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:tra
nsparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:71.99999982px;"><div style="text-align:center;font-size:8pt;width:75.99999982px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, 2010</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:5.33333332px;"><div style="overflow:hidden;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:65.33333317px;"><div style="text-align:center;font-size:8pt;width:69.33333317px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">June&nbsp;28, 2009</font></div></td><td style="vertical-align:bottom;padding:0px;width:14.666666630000002px;"><div style="overflow:hi
dden;font-size:10pt;width:16.66666663px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:55.99999986px;"><div style="text-align:center;font-size:8pt;width:59.99999986px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Amount</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:9.33333331px;"><div style="overflow:hidden;font-size:10pt;width:11.33333331px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:61.333333180000004px;"><div style="text-align:center;font-size:8pt;width:65.33333318000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Percen
tage</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Gain on sale of TowerJazz Semiconductor Ltd. Shares</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:58.13333318800001px;"><div style="text-align:right;font-size:10pt;width:60.13333318800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">993</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div>
</td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:5.33333332px;"><div style="overflow:hidden;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:51.466666538000005px;"><div style="text-align:right;font-size:10pt;width:53.466666538000005px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#c
ceeff;padding:0px;width:14.666666630000002px;"><div style="overflow:hidden;font-size:10pt;width:16.66666663px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:42.133333228000005px;"><div style="text-align:right;font-size:10pt;width:44.133333228000005px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">993</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.33333331px;"><div style="o
verflow:hidden;font-size:10pt;width:11.33333331px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:45.733333219px;"><div style="text-align:right;font-size:10pt;width:47.733333219px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Interest expense</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:67.53333316450001px;"><div style="text-align:right;font-size:10pt;width:71.53333316450001px"><font style="font-fam
ily:inherit;font-size:10pt;background-color:transparent;">(45</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:60.866666514500004px;"><div style="text-align:right;font-size:10pt;width:64.8666665145px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(47</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;padding:0px;width
:14.666666630000002px;"><div style="overflow:hidden;font-size:10pt;width:16.66666663px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;padding:0px;width:51.5333332045px;"><div style="text-align:right;font-size:10pt;width:55.5333332045px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.33333331px;"><div style="overflow:hidden;font-size:10pt;width:11.33333331px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:45.733333219px;"><div style="text-align:right;font-size:10pt;width:47.733333219px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(4</f
ont></div></td><td style="vertical-align:bottom;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">)%</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Interest income and other, net</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:67.53333316450001px;"><div style="text-align:right;font-size:10pt;width:71.53333316450001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(71</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="fo
nt-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:5.33333332px;"><div style="overflow:hidden;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:60.866666514500004px;"><div style="text-align:right;font-size:10pt;width:64.8666665145px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(1</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:14.666666630000002px;"><div style="overflow:hidden;font-size:10pt;width:16.66666
663px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:51.5333332045px;"><div style="text-align:right;font-size:10pt;width:55.5333332045px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(70</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:9.33333331px;"><div style="overflow:hidden;font-size:10pt;width:11.33333331px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:45.733333219px;"><div style="text-align:right;font-size:10pt;width:47.733333219px"><font style="font-family:inherit;font
- -size:10pt;background-color:transparent;">7,000</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">%</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:58.13333318800001px;"><div style="text-align:right;font-size:10pt;width:60.13333318800001px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">877
</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:5.33333332px;"><div style="overflow:hidden;font-size:10pt;width:7.33333332px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:51.466666538000005px;"><div style="text-align:right;font-size:10pt;width:53.466666538000005px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(48</fo
nt></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;padding:0px;width:14.666666630000002px;"><div style="overflow:hidden;font-size:10pt;width:16.66666663px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:42.133333228000005px;"><div style="text-align:right;font-size:10pt;width:44.133333228000005px"><font style="font-family:i
nherit;font-size:10pt;background-color:transparent;">925</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.33333331px;"><div style="overflow:hidden;font-size:10pt;width:11.33333331px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:45.733333219px;"><div style="text-align:right;font-size:10pt;width:47.733333219px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(1,927</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:15.599999961px;"><div style="text-align:left;padding-left:0px;font-size:10pt;w
idth:17.599999961px"><font style="font-family:inherit;font-size:10pt;">)%</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The decrease in interest expense is due primarily to the reduction of our average debt obligation to $2.6 million in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> from $2.9 million in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size
:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;">. The decrease in interest income and other, net was due primarily to interest rate decrease and foreign exchange losses in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> as compared to the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:
120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We conduct a portion of our research and development activities in Canada and India and we have sales and marketing activities in various countries outside of the United States. Most of these international expenses are incurred in local currency. Foreign currency transaction gains and losses are included in interest and other income (expense), net, as they occur. We do not use derivative financial instruments to hedge our exposure to fluctuations in foreign currency and, therefore, our results of operations are and will continue to be susceptible to fluctuations in foreign exchange gains or losses.</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</fon
t></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Provision for (benefit from) Income Taxes</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;font-size:10pt;text-indent:47.999999880000004px;"><font style="font-family:inherit;font-size:10pt;">The table below sets forth the changes in provision for Income Taxes from the six months ended </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;"> as compared to the six months ended </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">June&nbsp;28, 2009</font><font style="font-family:inherit;font-size:10pt;"> (in thousands, except percentage data):<
/font></div><div style="line-height:120%;text-align:left;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td></td><td width="9.3999999765px"></td><td width="47.466666548000006px"></td><td width="4.4666666555px"></td><td width="6.666666650000001px"></td><td width="9.3999999765px"></td><td width="46.133333218000004px"></td><td width="4.4666666555px"></td><td width="7.99999998px"></td><td width="9.3999999765px"></td><td width="36.799999908px"></td><td width="4.4666666555px"></td><td width="6.666666650000001px"></td><td width="44.399999889px"></td><td width="15.599999961px"></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</f
ont></div></td><td colspan="7" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:127.99999968px;"><div style="text-align:center;font-size:8pt;width:131.99999968px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Six Months Ended</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="overflow:hidden;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="6" style="vertical-align:bottom;padding:0px;width:109.733333059px;"><div style="text-align:center;font-size:8pt;width:113.733333059px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Change</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td cols
pan="3" style="vertical-align:bottom;padding:0px;width:61.333333180000004px;"><div style="text-align:center;font-size:8pt;width:65.33333318000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">July&nbsp;4, 2010</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:6.666666650000001px;"><div style="text-align:center;font-size:1pt;width:8.66666665px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:59.99999985px;"><div style="text-align:center;font-size:8pt;width:63.99999985px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">June&nbsp;28, 2009</font></div></td><td style="vertical-align:bottom;padding:0px;width:7.99999998px;"><div style="overflow:hidden;font-size:10pt;width:9.99999998px"><font style="font-family:i
nherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:50.66666654px;"><div style="text-align:center;font-size:8pt;width:54.66666654px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Amount</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:6.666666650000001px;"><div style="overflow:hidden;font-size:10pt;width:8.66666665px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:59.99999985px;"><div style="text-align:center;font-size:8pt;width:63.99999985px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Percentage</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-si
ze:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Provision for (benefit from) Income Taxes</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:47.466666548000006px;"><div style="text-align:right;font-size:10pt;width:49.466666548000006px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">28</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inher
it;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:6.666666650000001px;"><div style="overflow:hidden;font-size:10pt;width:8.66666665px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:46.133333218000004px;"><div style="text-align:right;font-size:10pt;width:48.133333218000004px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(11</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px
 double #000000;padding:0px;width:4.4666666555px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:7.99999998px;"><div style="overflow:hidden;font-size:10pt;width:9.99999998px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:36.799999908px;"><div style="text-align:right;font-size:10pt;width:38.799999908px"><font style="font-family:inherit;font-size:10pt;background-color:
transparent;">39</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:6.666666650000001px;"><div style="overflow:hidden;font-size:10pt;width:8.66666665px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:44.399999889px;"><div style="text-align:right;font-size:10pt;width:46.399999889px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">(355</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:15.599999961px
;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:17.599999961px"><font style="font-family:inherit;font-size:10pt;">)%</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The provision for (benefit from) income taxes for the first half of 2010 and 2009 are primarily for our foreign operations which are cost-plus entities offset by the monetization of prior year federal research credits. As of the end of the first half of 2010, our ability to utilize our income tax loss carryforwards in future periods is uncertain and, accordingly, we recorded a full valuation allowance against the related US tax provision. We will continue to assess the realizability of deferred tax assets in future periods.</font></div><div style="line-heig
ht:120%;text-align:left;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><a name="sD7C6A605036DFEBA45FE283E50EA1C7B"></a><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Liquidity and Capital Resources</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;font-size:10pt;text-indent:37.33333324px;"><font style="font-family:inherit;font-size:10pt;">We have financed our operating losses and capital investments through sales of common stock, private equity investments, capital and operating leases, our bank line of credit and cash flows from operations. As of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family
:inherit;font-size:10pt;">, our principal sources of liquidity consisted of our cash and cash equivalents of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$17.8 million</font><font style="font-family:inherit;font-size:10pt;">, available credit under our revolving line of credit with Silicon Valley Bank of $4.0&nbsp;million, and our investment in TowerJazz with a market value of approximately </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$0.9 million</font><font style="font-family:inherit;font-size:10pt;">. As of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;">, there is no material difference between the fair value and the carrying amount of the debt </font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;
">27</font></div></div><hr style="page-break-after:always"><div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations &mdash; (Continued)</font></div></div><br><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> outstanding under the Company's line of credit and capital leasing arrangements. The borrowing under the Company's line of credit is subject to maintaining a tangible net worth of at least $15 million, unrestricted cash or cash equivale
nt balance of at least $8 million and a quick ratio of 2 to 1.</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Most of our cash and cash equivalents were invested in a US Treasury money market fund rated AAAm/Aaa. Our interest-bearing debt consisted of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$2.0 million</font><font style="font-family:inherit;font-size:10pt;"> of revolving debt outstanding from Silicon Valley Bank and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$0.6 million</font><font style="font-family:inherit;font-size:10pt;"> outstanding under capital leases (see Note 6 of the Condensed Unaudited Consolidated Financial Statements). The 
term of the revolving debt facility runs until June 2011. Upon each advance, the Company can elect a variable interest rate, which is the prime rate plus one half of one percent, or a fixed rate which is the LIBOR plus the LIBOR rate margin. We were in compliance with all loan covenants as of the end of the current reporting period. During the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;">, we sold 700,000 shares of the TowerJazz ordinary shares. As of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;">, our investment in TowerJazz had a market value of approximately </font><font style="font-family:Times Ne
w Roman;color:#000000;font-size:10pt;text-decoration:none;">$0.9 million</font><font style="font-family:inherit;font-size:10pt;">. We intend to hold 450,000 shares as a short term investment in order to obtain preferred wafer pricing from TowerJazz.</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Net cash from operating activities</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Net cash used for operating activities was </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-
decoration:none;">$1.6 million</font><font style="font-family:inherit;font-size:10pt;"> in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;">. The cash used for operating activities resulted from the net loss in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> as well as changes in working capital. The net loss of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$358,000</font><font style="font-
family:inherit;font-size:10pt;"> included non-cash charges of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$1.1 million</font><font style="font-family:inherit;font-size:10pt;"> which consist of the gain on the sale of TowerJazz shares of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$993,000</font><font style="font-family:inherit;font-size:10pt;">, stock-based compensation of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$1.3 million</font><font style="font-family:inherit;font-size:10pt;">, depreciation and amortization of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$582,000</font><font style="font-family:inherit;font-size:10pt;">, utilization of wafer credits of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$190,000</font><font style="font
- -family:inherit;font-size:10pt;">, and a write-down of inventory of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$73,000</font><font style="font-family:inherit;font-size:10pt;">. The changes in the working capital accounts included an increase in accounts receivable of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$836,000</font><font style="font-family:inherit;font-size:10pt;">, an increase in inventories of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$177,000</font><font style="font-family:inherit;font-size:10pt;">, an increase in other assets of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$618,000</font><font style="font-family:inherit;font-size:10pt;">, and a decrease in trade payable of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$
765,000</font><font style="font-family:inherit;font-size:10pt;"> due to the timing of expenditures. These cash uses in the working capital accounts were partially offset by an increase in other long term liabilities of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$116,000</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Net cash used for operating activities was </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$2.6 million</font><font style="font-family:inherit;font-size:10pt;"> in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half
</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;">. The cash used for operating activities resulted primarily from a net loss of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$4.8 million</font><font style="font-family:inherit;font-size:10pt;">, which included </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$2.3 million</font><font style="font-family:inherit;font-size:10pt;"> of non-cash charges. These non-cash charges included stock-based compensation of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$951,000</font><font style="font-family:inherit;font-size:10pt;">, depreciation and amortization of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-dec
oration:none;">$914,000</font><font style="font-family:inherit;font-size:10pt;">, a write-down of inventory of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$236,000</font><font style="font-family:inherit;font-size:10pt;"> and utilization of wafer credits of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$213,000</font><font style="font-family:inherit;font-size:10pt;">. In addition, changes in working capital accounts in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;"> accounted for used cash of </font><font style="font-family:inherit;font-size:10pt;background-color:#ffffff;">$71,000 w</font><font style="font-family:inhe
rit;font-size:10pt;">hich consisted of a decrease in current assets o</font><font style="font-family:inherit;font-size:10pt;background-color:#ffffff;">f $114,000 part</font><font style="font-family:inherit;font-size:10pt;">ially offset by a decrease in current liabilities of </font><font style="font-family:inherit;font-size:10pt;background-color:#ffffff;">$185,000 i</font><font style="font-family:inherit;font-size:10pt;">n the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;">. The decrease in current assets resulted from a decrease in accounts receivable of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$278,000</font><font style="font-family:inherit;font-size:10pt;"> due primar
ily to higher collection effort in the last month of the quarter and a decrease in other current assets of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$228,000</font><font style="font-family:inherit;font-size:10pt;"> partially offset by an increase in inventories of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$378,000</font><font style="font-family:inherit;font-size:10pt;">. The decrease in current liabilities resulted primarily from a decrease in deferred income on shipments to distributors of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$271,000</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><fon
t style="font-family:inherit;font-size:10pt;font-style:italic;">Net cash from investing activities</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Net cash provided by investing activities for the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> was </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$1.0 million</font><font style="font-family:inherit;font-size:10pt;">, resulting from proceeds from the sale of TowerJazz shares of $1.1 million, partially 
offset by $147,000 in capital expenditures made primarily to acquire manufacturing equipments. </font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Net cash used for investing activities for the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;"> was </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$46,000</font><font style="font-family:inherit;font-size:10pt;">, as a result of capital expenditures made primarily to acquire software used in the de
velopment and production of our products and solutions. Capital expenditures, which are largely driven by the development of new products and manufacturing levels, are projected to be approximately $380,000 during the remainder of fiscal year </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Net cash from financing activities</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-f
amily:inherit;font-size:10pt;">Net cash provided by financing activities was </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$275,000</font><font style="font-family:inherit;font-size:10pt;"> for the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;">, resulting from scheduled payments under the terms of our debt and capital lease obligations, partially offset by </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$468,000</font><font style="font-family:inherit;font-size:10pt;"> in proceeds related to the issuance of common shares to employees under our equity plans. During the </font><font style="font-family:Times New Roman;color:#000
000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;">, we repaid $4.0 million of revolving debt at an interest rate of 6% and borrowed $2.0 million of revolving debt with an interest rate of 6% in Q1 2010 and $2.0 million of revolving debt with an interest rate of 4.5% in Q2 2010.</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Net cash used for financing activities was </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$327,000</font><font style="font-family:inherit;font-size:10pt;"> for 
the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;">, resulting from scheduled payments under the terms of our debt and capital lease obligations, partially offset by </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$190,000</font><font style="font-family:inherit;font-size:10pt;"> in proceeds related to the issuance of common shares to employees under our equity plans. During the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-famil
y:inherit;font-size:10pt;">, we repaid $2.0 million of revolving debt and borrowed $2.0 million of revolving debt with an interest rate of 6.0%.</font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">28</font></div></div><hr style="page-break-after:always"><div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations &mdash; (Continued)</font></div></div><br><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font
- -size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We require substantial cash to fund our business. However, we believe that our existing cash resources will be sufficient to fund operations and capital expenditures, and provide adequate working capital for at least the next twelve months. After the next twelve&nbsp;months, our cash requirements will depend on many factors, including our level of revenue and gross profit, the market acceptance of our existing and new products, the levels at which we maintain inventories and accounts receivable, costs of securing access to adequate manufacturing capacity, new product development efforts, capital expenditures and the level of our operating expenses.</font></div><div style="line-height:120%;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font
></div><a name="s7BEBA037A8C4B31D982D283FB7A09B53"></a><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Contractual Obligations and Commercial Commitments</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The following table summarizes our contractual obligations and commercial commitments as of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;"> and the effect such obligations and commitments are expected to have on our liquidity and cash flows in future fiscal periods (in thousands):</font></div><div style="line-height:120%;text-a
lign:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td></td><td width="9.3999999765px"></td><td width="63.466666508px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="63.466666508px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="63.466666508px"></td><td width="4.4666666555px"></td><td width="10.66666664px"></td><td width="9.3999999765px"></td><td width="63.466666508px"></td><td width="4.4666666555px"></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;
</font></div></td><td colspan="15" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:341.33333248px;"><div style="text-align:center;font-size:8pt;width:345.33333248px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Payments Due by Period</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:77.33333314000001px;"><div style="text-align:center;font-size:8pt;width:81.33333314000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Total</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:1pt;width:12.66666664px"><font
 style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:77.33333314000001px;"><div style="text-align:center;font-size:8pt;width:81.33333314000001px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Less than</font></div><div style="text-align:center;font-size:8pt;width:81.33333314000001px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">1&nbsp;Year</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:77.33333314000001px;"><div style="
text-align:center;font-size:8pt;width:81.33333314000001px"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">1-3 Years</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;width:10.66666664px;"><div style="text-align:center;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:77.33333314000001px;"><div style="text-align:center;font-size:8pt;width:81.33333314000001px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">More than</font></div><div style="text-align:center;font-size:8pt;width:81.33333314000001px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">3 Years</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="te
xt-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;font-style:italic;">Contractual cash obligations:</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:77.33333314000001px;"><div style="text-align:right;font-size:1pt;width:81.33333314000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:77.33333314000001px;"><div style="text-align:right;font-size:1pt;width:81.33333314000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:b
ottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:77.33333314000001px;"><div style="text-align:right;font-size:1pt;width:81.33333314000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:77.33333314000001px;"><div style="text-align:right;font-size:1pt;width:81.33333314000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparen
t;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Operating leases</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:63.466666508px;"><div style="text-align:right;font-size:10pt;width:65.466666508px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">1,324</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><f
ont style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:63.466666508px;"><div style="text-align:right;font-size:10pt;width:65.466666508px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">549</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px
;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:63.466666508px;"><div style="text-align:right;font-size:10pt;width:65.466666508px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">759</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font
- -size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding:0px;width:63.466666508px;"><div style="text-align:right;font-size:10pt;width:65.466666508px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">16</font></div></td><td style="vertical-align:bottom;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="padding-left:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Wafer purchases </font><font style="font-family:inherit;font-size:10pt;"><sup>(1)</sup></font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:72.8666664845px;"><div style="text-align:right;font-size:10pt;width:76.8666664845px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">3,153</font></div></td><td styl
e="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:72.8666664845px;"><div style="text-align:right;font-size:10pt;width:76.8666664845px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">3,153</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;paddi
ng:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:72.8666664845px;"><div style="text-align:right;font-size:10pt;width:76.8666664845px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding
:0px;width:72.8666664845px;"><div style="text-align:right;font-size:10pt;width:76.8666664845px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Other purchase commitments</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:72.8666664845px;"><div style="text-align:right;font-size:10pt;width:76.8666664845px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,326</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"
><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:72.8666664845px;"><div style="text-align:right;font-size:10pt;width:76.8666664845px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,326</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inh
erit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:72.8666664845px;"><div style="text-align:right;font-size:10pt;width:76.8666664845px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:72.8666664845px;"><div style="text-align:right;font-size:10pt;width:76.8666664845px"><font style="font-family:inh
erit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;font-style:italic;">Total contractual cash obligations</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:72.8666664845px;"><div style="text-align:right;font-size:10pt;width:76.8666664845px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">6,803</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:1px solid 
#000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:72.8666664845px;"><div style="text-align:right;font-size:10pt;width:76.8666664845px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">6,028</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;backgrou
nd-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:72.8666664845px;"><div style="text-align:right;font-size:10pt;width:76.8666664845px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">759</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div>
</td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:72.8666664845px;"><div style="text-align:right;font-size:10pt;width:76.8666664845px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">16</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="font-style:italic;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Other commercial commitments </font><font style="font-family:inherit;font-size:10pt;font-style:italic;"><sup>(2)</sup></font><font style="font-family:inherit;font-size:10pt;font-style:italic;">:</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:77.33333314000001p
x;"><div style="text-align:right;font-size:1pt;width:81.33333314000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:77.33333314000001px;"><div style="text-align:right;font-size:1pt;width:81.33333314000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:77.33333314000001px;"><div style="text-align:right;font-size:1p
t;width:81.33333314000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="3" style="vertical-align:bottom;padding:0px;width:77.33333314000001px;"><div style="text-align:right;font-size:1pt;width:81.33333314000001px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Revolving line of credit</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:72.8666664845px;"><div style="text-align:right;font-size:10pt;width:
76.8666664845px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,000</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:72.8666664845px;"><div style="text-align:right;font-size:10pt;width:76.8666664845px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,000</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font styl
e="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:72.8666664845px;"><div style="text-align:right;font-size:10pt;width:76.8666664845px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;backg
round-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:72.8666664845px;"><div style="text-align:right;font-size:10pt;width:76.8666664845px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Capital lease obligations</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:72.8666664845px;"><div style="text-align:right;font-size:10pt;width:76.8666664845px"><font style="font-family:inherit;font-size:10pt;background-color:transparen
t;">604</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:72.8666664845px;"><div style="text-align:right;font-size:10pt;width:76.8666664845px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">397</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;pad
ding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:72.8666664845px;"><div style="text-align:right;font-size:10pt;width:76.8666664845px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">207</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;w
idth:72.8666664845px;"><div style="text-align:right;font-size:10pt;width:76.8666664845px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;font-style:italic;">Total commercial commitments</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:72.8666664845px;"><div style="text-align:right;font-size:10pt;width:76.8666664845px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,604</font></div></td
><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:72.8666664845px;"><div style="text-align:right;font-size:10pt;width:76.8666664845px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">2,397</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><fo
nt style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:72.8666664845px;"><div style="text-align:right;font-size:10pt;width:76.8666664845px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">207</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:
12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:72.8666664845px;"><div style="text-align:right;font-size:10pt;width:76.8666664845px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&mdash;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-bottom:1px solid #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="padding-left:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Total contractual obligations and commercial commitments </font><font style="font-family:inherit;font-size:10pt;"><sup>(3)</sup></font></div></td><td style="vertical-align:bottom;border-bottom:3p
x double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:63.466666508px;"><div style="text-align:right;font-size:10pt;width:65.466666508px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">9,407</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #0000
00;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:63.466666508px;"><div style="text-align:right;font-size:10pt;width:65.466666508px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">8,425</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-top:1px 
solid #000000;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:63.466666508px;"><div style="text-align:right;font-size:10pt;width:65.466666508px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">966</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:10.66666664px;"><div style="text-align:left;font-size:1pt;width:12.66666664px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td st
yle="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:9.3999999765px;"><div style="text-align:left;padding-left:0px;font-size:10pt;width:11.3999999765px"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:63.466666508px;"><div style="text-align:right;font-size:10pt;width:65.466666508px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">16</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding:0px;width:4.4666666555px;"><div style="padding-left:0px;width:6.4666666555px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">_________________</font></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:5pt;">&nbsp;</font></div><div style="line-h
eight:120%;padding-left:23.999999940000002px;text-align:left;text-indent:-23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><sup>(1)</sup></font><font style="font-family:inherit;font-size:3pt;">&nbsp;</font><font style="font-family:inherit;font-size:10pt;">&nbsp;&nbsp;&nbsp;&nbsp;Certain of our wafer manufacturers require us to forecast wafer starts several months in advance. We are committed to take delivery of and pay for a portion of forecasted wafer volume. Wafer purchase commitments of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$3.2 million</font><font style="font-family:inherit;font-size:10pt;"> include both firm purchase commitments and a portion of our forecasted wafer starts as of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;padding-left
:23.999999940000002px;text-align:left;text-indent:-23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;padding-left:23.999999940000002px;text-align:left;text-indent:-23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><sup>(2)</sup></font><font style="font-family:inherit;font-size:10pt;">&nbsp;&nbsp;&nbsp;&nbsp;Other commercial commitments are included as liabilities on our balance sheets as of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;padding-left:23.999999940000002px;text-align:left;text-indent:-23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;padding-left:23.999999940000002px;text-align:left;text-indent:-23.999999940000002px;font-
size:10pt;"><font style="font-family:inherit;font-size:10pt;"><sup>(3)</sup></font><font style="font-family:inherit;font-size:10pt;">&nbsp;&nbsp;&nbsp;&nbsp;Does not include unrecognized tax benefits of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$72,000</font><font style="font-family:inherit;font-size:10pt;"> as of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;">. See Note 10 of the Condensed Unaudited Consolidated Financial Statements.</font></div><div style="line-height:120%;padding-left:35.99999991px;text-align:left;text-indent:-37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Concentration of Suppliers</font></div>
<div style="line-height:120%;padding-left:13.333333300000001px;text-align:left;text-indent:-14.666666630000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;font-size:10pt;text-indent:37.33333324px;"><font style="font-family:inherit;font-size:10pt;">We depend on a limited number of contract manufacturers, subcontractors, and suppliers for wafer fabrication, assembly, programming and testing of our devices, and for the supply of programming equipment. These services are typically provided by one supplier for each of our devices. We generally purchase these single or limited source services through standard purchase orders or under our agreement with TowerJazz. Because we rely on independent subcontractors to perform these services, we cannot directly control product delivery schedules, costs or quality levels. Our future success also depends on the financial viability of our independent subcontractors. These subcontract man
ufacturers produce products for other companies and we must place orders in advance of expected delivery. As a result, we have only a limited ability to react to fluctuations in demand for our products, which could cause us to have an excess or a shortage of inventories of a particular product, and our ability to respond to changes in demand is limited by the ability of these suppliers to provide products with the quantity, quality, cost and timeliness that we require. The decision not to provide these services to us or the inability to supply these services to us, such as in the case of a natural or financial disaster, would have a significant impact on our business. Increased demand from other companies could result in these subcontract manufacturers allocating available capacity to customers that are larger or have long-term supply contracts in place and we may be unable to obtain adequate foundry and other capacity at acceptable prices, or we may experience delays or interruptions in supply. Additionally
, volatility of economic, market, social and political conditions in countries where these suppliers operate may be unpredictable and could result in a reduction in product revenue </font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">29</font></div></div><hr style="page-break-after:always"><div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations &mdash; (Continued)</font></div></div><br><div style="line-height:120%;text-alig
n:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> or increase our cost of revenue and could adversely affect our business, financial condition and results of operations.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><a name="s3CA6C339EEF18D32554328410060409A"></a><div style="line-height:120%;padding-right:0px;padding-bottom:0px;padding-top:0px;padding-left:0px;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;font-style:italic;font-weight:bold;">Off-Balance Sheet Arrangements</font></div><div style="line-height:120%;padding-right:0px;padding-bottom:0px;padding-top:0px;padding-left:0px;text-align:left;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">&nbsp;</font></div><div style="line-height:120%;padding-right:0px;padding-bottom:0px;padding-top:0px;padding-left:0px;
text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">We do not maintain any off-balance sheet partnerships, arrangements or other relationships with unconsolidated entities or others, often referred to as structured finance or special purpose entities, which are established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">&nbsp;</font></div><a name="sF606EA0CFB621B043E9D2841AD4EE9F3"></a><div style="line-height:120%;padding-right:0px;padding-bottom:0px;padding-top:0px;padding-left:0px;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;font-style:italic;font-weight:bold;">Recently Issued Accounting Pronouncements</font></div><div style="line-height:120%;padd
ing-right:0px;padding-bottom:0px;padding-top:0px;padding-left:0px;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">&nbsp;</font></div><div style="line-height:120%;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">See Note 2 of the Condensed Unaudited Consolidated Financial Statements for a description of recent accounting pronouncements, including the respective dates of adoption and effects on results of operations and financial condition.</font></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><a name="sCC904FD7B7EEA990F81CFEE31C67EE8C"></a><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Item 3. Quantitative and Qualitative Disclosures about Market Risk</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><
font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Interest Rate Risk</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our exposure to market rate risk for changes in interest rates relates primarily to our investment portfolio and variable rate debt. We do not use derivative financial instruments to manage our interest rate risk. We are adverse to principal loss and ensure the safety and preservation of invested funds by limiting default, market risk and reinvestment risk. Our investment portfolio is generally comprised of investments that meet high credit quality standards and have act
ive secondary and resale markets. Since these securities are subject to interest rate risk, they could decline in value if interest rates fluctuate or if the liquidity of the investment portfolio were to change. Due to the short duration and conservative nature of our investment portfolio, we do not anticipate any material loss with respect to our investment portfolio. A 10% move in interest rates as of the end of the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">second</font><font style="font-family:inherit;font-size:10pt;"> quarter of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> would have an immaterial effect on our financial position, results of operations and cash flows.</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></di
v><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Foreign Currency Exchange Rate Risk</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">All of our sales and costs of manufacturing are transacted in U.S. dollars. We conduct a portion of our research and development activities in Canada and India and have sales and marketing offices in several locations outside of the United States. We use the U.S. dollar as our functional currency. Most of the costs incurred at these international locations are in local currency. If these local currencies strengthen against the U.S. dollar, our payroll and other local expenses will be higher than we currently anticipate
. Since our sales are transacted in U.S. dollars, this negative impact on expenses would not be offset by any positive effect on revenue. Operating expenses denominated in foreign currencies were approximately 17% and 18% of total operating expenses for the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font style="font-family:inherit;font-size:10pt;">, respectively.  A currency exchange rate fluctuation of 10% would have caused our operating expenses to change by approximately $141,000 in the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">first half</font><font
 style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Equity Price Risk</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our exposure to equity price risk for changes in market value relates primarily to our investment in TowerJazz. TowerJazz's ordinary shares trade on the Nasdaq Glo
bal Market under the symbol &ldquo;TSEM&rdquo;. Since these securities are publicly traded on the open market, they are subject to market fluctuations. Temporary market fluctuations are reflected by increasing or decreasing the presented value of the related securities and recording &ldquo;accumulated other comprehensive income (loss)&rdquo; in the equity section of the balance sheet. An &ldquo;other than temporary&rdquo; decline in market value is reflected by decreasing the carrying value of the related securities and recording a charge to operating expenses in the income statement. The determination that the decline in market value was &ldquo;other than temporary&rdquo; included factors such as the then current market value and the period of time that the market value had been below the carrying value in each of the respective periods. During the first quarter of 2010, we sold 700,000 of the TowerJazz ordinary shares. In the </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text
- -decoration:none;">first half</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;"> and 2009, we marked to market and recorded an unrealized loss of $0.3 million and an unrealized gain of $0.2 million, respectively, based on the quoted market price of the stock on the last day of the reporting period. As a result, the carrying value of the TowerJazz ordinary shares was $1.38 per share as of the end of the second quarter of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2010</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font st
yle="font-family:inherit;font-size:10pt;">There have been no changes since the end of the last fiscal year, in the risk exposures described above or the management of such exposures.</font></div><div style="line-height:120%;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><a name="s4F677717A77B76747414FEE3DF442E60"></a><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Item 4. Controls and Procedures</font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">30</font></div></div><hr style="page-break-after:always"><div style="font-family:Times New Roman;font-size:10pt;vertical-align:inherit;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a><font s
tyle="font-family:inherit;font-size:10pt;">&nbsp;</font></div></div><br><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Evaluation of Disclosure Controls and Procedures</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We maintain disclosure controls and procedures designed to ensure that information required to be disclosed in the reports we file or submit pursuant to the Securities and Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the rules and forms
 of the Securities and Exchange Commission, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Management, with the participation of the Chief Executive Officer and Chief Financial Officer, has performed an evaluation of our disclosure controls and procedures.&nbsp;Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded to a reasonable assurance level that, as of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-f
amily:inherit;font-size:10pt;">, our disclosure controls and procedures were effective.</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Changes in Internal Control Over Financial Reporting</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">There were no changes in our internal control over financial reporting that occurred during the period covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.</f
ont></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><a name="sE7CDE9918A5F42350964FEE428514472"></a><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;font-weight:bold;">Part&nbsp;II. Other Information</font></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><a name="sB33E7735AD45DB011E85FEE4799FB4D2"></a><div style="line-height:120%;padding-right:0px;padding-bottom:0px;padding-top:0px;padding-left:0px;text-align:left;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;font-weight:bold;">Item 1. Legal Proceedings</font></div><div style="line-height:120%;padding-right:0px;padding-bottom:0px;padding-top:0px;padding-left:0px;text-align:left;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt
;color:#000000;">&nbsp;</font></div><div style="line-height:120%;padding-right:0px;padding-bottom:0px;padding-top:0px;padding-left:0px;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">See Note 13 of the Condensed Unaudited Consolidated Financial Statements for a description of legal proceedings.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">&nbsp;</font></div><a name="s2F14985FE842A2381EEEFEE4B091F2BB"></a><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Item 1A. Risk Factors</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our 2009 Annual
 Report on Form 10-K for the year ended </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">January&nbsp;3, 2010</font><font style="font-family:inherit;font-size:10pt;">, includes a detailed discussion of our risk factors at Part I, Item&nbsp;1A, Risk Factors. The information presented below updates and supplements, and should be read in conjunction with the risk factors and information disclosed in that Form 10-K and in conjunction with any subsequent updates disclosed in our quarterly filings on Form 10-Q.</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Risk Factors</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:
inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;font-size:10pt;text-indent:47.999999880000004px;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Our future results depend on our relationship with TowerJazz<br>      </font></div><div style="line-height:120%;text-align:left;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;font-size:10pt;text-indent:47.999999880000004px;"><font style="font-family:inherit;font-size:10pt;">TowerJazz is the primary manufacturer of our new products.  Between 2001 and 2002, we invested $21.3&nbsp;million in equity and prepaid wafer credits to obtain guaranteed wafer fabrication capacity at TowerJazz through December 2010. Our inability to extend the current terms and conditions of our Foundry Agreement beyond December 2010, may cause us to experience higher prices for fabrication at TowerJazz as well as longer product lead times.  In addition, we believe t
hat TowerJazz&rsquo;s long-term operation of this fabrication facility depends on its ability to attract sufficient customer demand, to obtain additional financing, to increase capacity, to obtain the release of grants and approvals for changes in grant programs from the Israeli government&rsquo;s Investment Center and its ability to remain in compliance with the terms of its grant and credit agreements. The current political uncertainty and security situation in the Middle East where TowerJazz&rsquo;s fabrication facility is located, the cyclical nature of the market for foundry manufacturing services, TowerJazz&rsquo;s financial condition, or other factors may adversely impact TowerJazz&rsquo;s business prospects and may discourage future investments in TowerJazz from outside sources. If TowerJazz is unable to produce wafers, we will have to identify and qualify a substitute supplier to manufacture our products. This could require significant development time, cause product shipment delays, impair long-liv
ed assets and the value of our wafer credits, damage our liquidity and severely harm our business. </font></div><div style="line-height:120%;text-align:left;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;font-size:10pt;text-indent:47.999999880000004px;"><font style="font-family:inherit;font-size:10pt;">The value of our investment in TowerJazz may be adversely affected by a deterioration of conditions in the market for foundry manufacturing services, the market for semiconductor products, TowerJazz&rsquo;s financial health and TowerJazz&rsquo;s ability to remain in compliance with Nasdaq listing standards. As of July 4, 2010, we held 645,000 available for sale TowerJazz ordinary shares. During the past 52 weeks, the TowerJazz shares have, from time to time, traded below $1.00.  If TowerJazz does not remain in compliance with Nasdaq listing standards, or if TowerJazz&rsquo;s financial position is determined to be significantly impaired, the l
iquidity of our investment may be adversely affected.<br>      </font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">31</font></div></div><hr style="page-break-after:always"><div style="font-family:Times New Roman;font-size:10pt;vertical-align:inherit;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></div><br><div style="line-height:120%;text-align:left;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;padding-left:15.99999996px;text-align:left;font-size:10pt;text-indent:47.999999880000004px;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">We have a history of losses and cannot assure you that we will again be profitable in the future<br>   
   </font></div><div style="line-height:120%;padding-left:15.99999996px;text-align:left;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-indent:35.99999991px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We incurred significant losses to date. Our accumulated deficit as of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">July&nbsp;4, 2010</font><font style="font-family:inherit;font-size:10pt;"> was </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$158.1 million</font><font style="font-family:inherit;font-size:10pt;">. We recorded a net loss of </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$9.8 million</font><font style="font-family:inherit;font-size:10pt;"> in </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2009</font><font styl
e="font-family:inherit;font-size:10pt;">, </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">$9.4 million</font><font style="font-family:inherit;font-size:10pt;"> in </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2008</font><font style="font-family:inherit;font-size:10pt;"> and $11.1 million in </font><font style="font-family:Times New Roman;color:#000000;font-size:10pt;text-decoration:none;">2007</font><font style="font-family:inherit;font-size:10pt;">, and we may not return to profitability in any future periods.</font></div><div style="line-height:120%;text-indent:35.99999991px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">32</font></div></div><hr style="page-break-after:always"><a name="sED510649818FCB21B839FEE4D5672EB9"></a><div style="font-family:Times New Roma
n;font-size:10pt;vertical-align:inherit;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></div><br><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Item 6. Exhibits</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Exhibits</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;te
xt-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The following Exhibits are filed with this report:</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td width="45.33333322px"></td><td width="14.666666630000002px"></td><td></td></tr><tr><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:45.33333322px;"><div style="font-size:8pt;width:47.33333322px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Exhibit</font></div><div style="font-size:8pt;width:47.33333322px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Number</font></div></td><td style="vertical-align:
bottom;padding:0px;width:14.666666630000002px;"><div style="text-align:center;font-size:1pt;width:16.66666663px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;"><div style="text-align:center;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Description</font></div></td></tr><tr><td style="vertical-align:top;padding:0px;width:45.33333322px;"><div style="vertical-align:top;font-size:10pt;width:47.33333322px"><font style="font-family:inherit;font-size:10pt;vertical-align:top;">3.1</font><font style="font-family:inherit;font-size:10pt;vertical-align:top;"><sup>(1)</sup></font></div></td><td style="vertical-align:bottom;padding:0px;width:14.666666630000002px;"><div style="text-align:left;font-size:1pt;width:16.66666663px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;<
/font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Amended and Restated Certificate of Incorporation of Registrant.</font></div></td></tr><tr><td style="vertical-align:top;padding:0px;width:45.33333322px;"><div style="vertical-align:top;font-size:10pt;width:47.33333322px"><font style="font-family:inherit;font-size:10pt;vertical-align:top;">3.2</font><font style="font-family:inherit;font-size:10pt;vertical-align:top;"><sup>(2)</sup></font></div></td><td style="vertical-align:bottom;padding:0px;width:14.666666630000002px;"><div style="text-align:left;font-size:1pt;width:16.66666663px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Bylaws of Registrant.</
font></div></td></tr><tr><td style="vertical-align:top;padding:0px;width:45.33333322px;"><div style="vertical-align:top;font-size:10pt;width:47.33333322px"><font style="font-family:inherit;font-size:10pt;vertical-align:top;">31.1</font></div></td><td style="vertical-align:bottom;padding:0px;width:14.666666630000002px;"><div style="text-align:left;font-size:1pt;width:16.66666663px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">CEO Certification pursuant to Section&nbsp;302 of the Sarbanes-Oxley Act of 2002.</font></div></td></tr><tr><td style="vertical-align:top;padding:0px;width:45.33333322px;"><div style="vertical-align:top;font-size:10pt;width:47.33333322px"><font style="font-family:inherit;font-size:10pt;vertical-align:top;">31.2</font></div></td><td style="vertical-align:bottom;pad
ding:0px;width:14.666666630000002px;"><div style="text-align:left;font-size:1pt;width:16.66666663px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">CFO Certification pursuant to Section&nbsp;302 of the Sarbanes-Oxley Act of 2002.</font></div></td></tr><tr><td style="vertical-align:top;padding:0px;width:45.33333322px;"><div style="text-align:left;font-size:10pt;width:47.33333322px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">32</font></div></td><td style="vertical-align:bottom;padding:0px;width:14.666666630000002px;"><div style="text-align:left;font-size:1pt;width:16.66666663px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;
font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">CEO and CFO Certifications pursuant to 18&nbsp;U.S.C. Section&nbsp;1350, as adopted pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002.</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">_________________</font></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:5pt;">&nbsp;</font></div><div style="line-height:120%;padding-left:23.999999940000002px;text-align:left;text-indent:-23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><sup>(1)</sup></font><font style="font-family:inherit;font-size:3pt;">&nbsp;   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="font-family:inherit;font-size:10pt;">Incorporated by reference to the Company's Registration Statement on Form&nbsp;S-1 declared effective October&nbsp;14, 1999 (Commis
sion File No.&nbsp;333-28833).</font></div><div style="line-height:120%;padding-left:23.999999940000002px;text-align:left;text-indent:-23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><sup>(2)  </sup></font><font style="font-family:inherit;font-size:3pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="font-family:inherit;font-size:10pt;">Incorporated by reference to the Company's Current Report on Form&nbsp;8-K (Item&nbsp;5.03) filed May&nbsp;2, 2005.</font></div><div style="line-height:120%;padding-left:23.999999940000002px;text-indent:-23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">33</font></div></div><hr style="page-break-after:always"><a name="s0D5CE2B6F1ABA961AF10FEE56AE58497"></a><div style="font-family:Times New Roman;font-size:10pt;vertical-align:inherit;"><
div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents</font></a><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></div><br><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Signatures</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:left;text-indent:37.33333324px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Pursuant to the requirements of the Securities Exchange Act of 1934 the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;<
/font></div><div style="line-height:120%;text-align:left;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;width:100%;border-collapse:collapse;"><tr><td width="37.33333324px"></td><td></td><td></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:37.33333324px;"><div style="overflow:hidden;font-size:10pt;width:39.33333324px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;font-weight:bold;">QUICKLOGIC CORPORATION</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:37.33333324px;"><div style="overflow:hidden;font-size:10pt;width:39.33333324px"><font style="font-family:inherit;fo
nt-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:37.33333324px;"><div style="overflow:hidden;font-size:10pt;width:39.33333324px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">/s/ Ralph S. Marimon</font></div></t
d></tr><tr><td style="vertical-align:bottom;padding:0px;width:37.33333324px;"><div style="text-align:left;font-size:10pt;width:39.33333324px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Date:</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">August&nbsp;12, 2010</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Ralph S. Marimon</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:37.33333324px;"><div style="overflow:hidden;font-size:10pt;width:39.33333324px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;backgroun
d-color:transparent;color:#ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Vice President, Finance and
 Chief Financial Officer</font></div><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">(as Principal Accounting and Financial Officer and on behalf of the</font><font style="font-family:inherit;font-size:10pt;">&nbsp;</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Registrant)</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">34</font></div></div><hr style="page-break-after:always"><a name="sD65B4ED934A32A2C788C23BBF104806F"></a><div style="font-family:Times New Roman;font-size:10pt;vertical-align:inherit;"><div style="line-height:120%;"><a style="text-decoration:underline;color:#0000FF;" href="#s1968B860A93AB3D7546DFECC9DE19266"><font style="font-family:inherit;font-size:10pt;">Table of Contents
</font></a><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></div><br><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">EXHIBIT INDEX</font></div><div style="line-height:120%;text-align:center;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:120%;text-align:center;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td width="45.33333322px"></td><td width="14.666666630000002px"></td><td></td></tr><tr><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;width:45.33333322px;"><div style="font-size:8pt;width:47.33333322px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Exhibit</font></div><div style="font-size:8pt;width:47.33333322px"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Number</font
></div></td><td style="vertical-align:bottom;padding:0px;width:14.666666630000002px;"><div style="text-align:center;font-size:1pt;width:16.66666663px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;font-weight:bold;">&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;"><div style="text-align:center;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;background-color:transparent;font-weight:bold;">Description</font></div></td></tr><tr><td style="vertical-align:top;padding:0px;width:45.33333322px;"><div style="vertical-align:top;font-size:10pt;width:47.33333322px"><font style="font-family:inherit;font-size:10pt;vertical-align:top;">3.1</font><font style="font-family:inherit;font-size:10pt;vertical-align:top;"><sup>(1)</sup></font></div></td><td style="vertical-align:bottom;padding:0px;width:14.666666630000002px;"><div style="text-align:left;font-size:1pt;width:16.66666663px"><font style="font-family:inherit;font-size:1pt;
background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Amended and Restated Certificate of Incorporation of Registrant.</font></div></td></tr><tr><td style="vertical-align:top;padding:0px;width:45.33333322px;"><div style="vertical-align:top;font-size:10pt;width:47.33333322px"><font style="font-family:inherit;font-size:10pt;vertical-align:top;">3.2</font><font style="font-family:inherit;font-size:10pt;vertical-align:top;"><sup>(2)</sup></font></div></td><td style="vertical-align:bottom;padding:0px;width:14.666666630000002px;"><div style="text-align:left;font-size:1pt;width:16.66666663px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color
:transparent;">Bylaws of Registrant.</font></div></td></tr><tr><td style="vertical-align:top;padding:0px;width:45.33333322px;"><div style="vertical-align:top;font-size:10pt;width:47.33333322px"><font style="font-family:inherit;font-size:10pt;vertical-align:top;">31.1</font></div></td><td style="vertical-align:bottom;padding:0px;width:14.666666630000002px;"><div style="text-align:left;font-size:1pt;width:16.66666663px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">CEO Certification pursuant to Section&nbsp;302 of the Sarbanes-Oxley Act of 2002.</font></div></td></tr><tr><td style="vertical-align:top;padding:0px;width:45.33333322px;"><div style="vertical-align:top;font-size:10pt;width:47.33333322px"><font style="font-family:inherit;font-size:10pt;vertical-align:top;">31.2</font></div></t
d><td style="vertical-align:bottom;padding:0px;width:14.666666630000002px;"><div style="text-align:left;font-size:1pt;width:16.66666663px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">CFO Certification pursuant to Section&nbsp;302 of the Sarbanes-Oxley Act of 2002.</font></div></td></tr><tr><td style="vertical-align:top;padding:0px;width:45.33333322px;"><div style="text-align:left;font-size:10pt;width:47.33333322px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">32</font></div></td><td style="vertical-align:bottom;padding:0px;width:14.666666630000002px;"><div style="text-align:left;font-size:1pt;width:16.66666663px"><font style="font-family:inherit;font-size:1pt;background-color:transparent;">&nbsp;</font></div></td><td style="vertical-align:bottom;padd
ing:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">CEO and CFO Certifications pursuant to 18&nbsp;U.S.C. Section&nbsp;1350, as adopted pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002.</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">_________________</font></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:5pt;">&nbsp;</font></div><div style="line-height:120%;padding-left:23.999999940000002px;text-align:left;text-indent:-23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><sup>(1)</sup></font><font style="font-family:inherit;font-size:3pt;">&nbsp;   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="font-family:inherit;font-size:10pt;">Incorporated by reference to the Company's Registration Statement on Form&nbsp;S-1 declared e
ffective October&nbsp;14, 1999 (Commission File No.&nbsp;333-28833).</font></div><div style="line-height:120%;padding-left:23.999999940000002px;text-align:left;text-indent:-23.999999940000002px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><sup>(2)  </sup></font><font style="font-family:inherit;font-size:3pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="font-family:inherit;font-size:10pt;">Incorporated by reference to the Company's Current Report on Form&nbsp;8-K (Item&nbsp;5.03) filed May&nbsp;2, 2005.</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;"><font style="color:#000000;">35</font></div></div>	</body>
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<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>2
<FILENAME>quik2010070410qex311.htm
<DESCRIPTION>CEO CERTIFICATION PURSUANT TO SECTION 302
<TEXT>
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<a name="s066B1B2EBF645D7502F8382501CA4787"></a><div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></div><br><div style="line-height:100%;text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Exhibit 31.1</font></div><div style="line-height:100%;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:100%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">CERTIFICATIONS</font></div><div style="line-height:100%;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:100%;padding-left:0px;text-align:left;text-indent:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">I, E. Thomas Hart, certify that:</font></div><div style="line-height:100%;padding-left:0px;text-align:left;text-indent:0px;"><font style="font-family:
inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:100%;padding-left:0px;text-align:left;text-indent:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">1.&nbsp;&nbsp;&nbsp;&nbsp;</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">I have reviewed this quarterly report on Form&nbsp;10-Q of QuickLogic Corporation;</font></div><div style="line-height:100%;padding-left:0px;text-align:left;text-indent:0px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:100%;padding-left:0px;text-align:left;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">2.</font><font style="font-family:inherit;font-size:10pt;">&nbsp;</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light o
f the circumstances under which such statements were made, not misleading with respect to the period covered by this report;</font></div><div style="line-height:100%;padding-left:0px;text-align:left;text-indent:0px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:100%;padding-left:0px;text-align:left;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">3.</font><font style="font-family:inherit;font-size:10pt;">&nbsp;</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;</font></div><div style="line-height:100%;padding-left:0px;text-align:left;text-indent:0px;"><font style="font-family:inherit;font-size:10pt;">&nbs
p;</font></div><div style="line-height:100%;padding-left:0px;text-align:left;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">4.</font><font style="font-family:inherit;font-size:10pt;">&nbsp;</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules&nbsp;13a-15(e)&nbsp;and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:</font></div><div style="line-height:100%;padding-left:0px;text-align:left;text-indent:0px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:100%;padding-left:47.999999880000004px;text-align:left;text-indent:-23.999999940000002px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;"
>(a)</font><font style="font-family:inherit;font-size:10pt;">&nbsp;</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</font></div><div style="line-height:100%;padding-left:47.999999880000004px;text-align:left;text-indent:-23.999999940000002px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:100%;padding-left:47.999999880000004px;text-align:left;text-indent:-23.999999940000002px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">(b)</font><font style="font-family:inherit;font-size:10pt;">&nbsp;</font><font style="font-family:Times New Roma
n;font-size:10pt;color:#000000;">Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</font></div><div style="line-height:100%;padding-left:47.999999880000004px;text-align:left;text-indent:-23.999999940000002px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:100%;padding-left:47.999999880000004px;text-align:left;text-indent:-23.999999940000002px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">(c)</font><font style="font-family:inherit;font-size:10pt;">&nbsp;</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">Evaluated the effectiveness of the registrant's disclosure controls and procedures and 
presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</font></div><div style="line-height:100%;padding-left:47.999999880000004px;text-align:left;text-indent:-23.999999940000002px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:100%;padding-left:47.999999880000004px;text-align:left;text-indent:-23.999999940000002px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">(d)</font><font style="font-family:inherit;font-size:10pt;">&nbsp;</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely t
o materially affect, the registrant's internal control over financial reporting; and</font></div><div style="line-height:100%;padding-left:0px;text-align:left;text-indent:0px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:100%;padding-left:0px;text-align:left;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">5.</font><font style="font-family:inherit;font-size:10pt;">&nbsp;</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):</font></div><div style="line-height:100%;padding-left:0px;text-align:left;text-indent:0px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-
height:100%;padding-left:47.999999880000004px;text-align:left;text-indent:-23.999999940000002px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">(a)</font><font style="font-family:inherit;font-size:10pt;">&nbsp;</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and</font></div><div style="line-height:100%;padding-left:47.999999880000004px;text-align:left;text-indent:-23.999999940000002px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:100%;padding-left:47.999999880000004px;text-align:left;text-indent:-23.999999940000002px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">(b)</font><font style="font-f
amily:inherit;font-size:10pt;">&nbsp;</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.</font></div><div style="line-height:100%;padding-left:0px;text-align:left;text-indent:0px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:100%;padding-left:0px;text-align:left;text-indent:0px;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;width:100%;border-collapse:collapse;"><tr><td width="37.33333324px"></td><td></td><td></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:37.33333324px;"><div style="text-align:left;font-size:10pt;width:39.33333324px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Date:</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left
;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">August&nbsp;12, 2010</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:37.33333324px;"><div style="overflow:hidden;height:19.999999950000003px;font-size:10pt;width:39.33333324px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;height:19.999999950000003px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;height:19.999999950000003px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:37.33333324px;"><div style="over
flow:hidden;font-size:10pt;width:39.33333324px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;
background-color:transparent;">/s/ E. Thomas Hart</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:37.33333324px;"><div style="overflow:hidden;font-size:10pt;width:39.33333324px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">E. Thomas Hart</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:37.33333324px;"><div style="overflow:hidden;font-size:10pt;width:39.33333324px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></di
v></td><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;font-style:italic;">Chairman of the Board and Chief Executive Officer</font></div></td></tr></table></div></div><br><div style="font-family:Times New Roman;font-size:10pt;text-align:center;"><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></div>	</body>
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<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>3
<FILENAME>quik2010070410qex312.htm
<DESCRIPTION>CFO CERTIFICATION PURSUANT TO SECTION 302
<TEXT>
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<a name="s6DDF0C7124156525D20939E54DE49529"></a><div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></div><br><div style="line-height:100%;text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Exhibit 31.2</font></div><div style="line-height:100%;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:100%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">CERTIFICATIONS</font></div><div style="line-height:100%;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:100%;padding-left:0px;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">I, Ralph S. Marimon, certify that</font><font style="font-family:inherit;font-size:10pt;">:</font></div><div style="line-height:100%;padding-lef
t:0px;text-indent:0px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:100%;padding-left:0px;text-indent:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">1.&nbsp;&nbsp;&nbsp;&nbsp;</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">I have reviewed this quarterly report on Form&nbsp;10-Q of QuickLogic Corporation;</font></div><div style="line-height:100%;padding-left:0px;text-indent:0px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:100%;padding-left:0px;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">2.</font><font style="font-family:inherit;font-size:10pt;">&nbsp;</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light 
of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;</font></div><div style="line-height:100%;padding-left:0px;text-indent:0px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:100%;padding-left:0px;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">3.</font><font style="font-family:inherit;font-size:10pt;">&nbsp;</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;</font></div><div style="line-height:100%;padding-left:0px;text-indent:0px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:100%;pad
ding-left:0px;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">4.</font><font style="font-family:inherit;font-size:10pt;">&nbsp;</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules&nbsp;13a-15(e)&nbsp;and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:</font></div><div style="line-height:100%;padding-left:0px;text-indent:0px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:100%;padding-left:47.999999880000004px;text-indent:-23.999999940000002px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">(a)</font><font style="font-family:inherit;font-size:10pt;">&nbsp;</font><font style="font-fam
ily:Times New Roman;font-size:10pt;color:#000000;">Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</font></div><div style="line-height:100%;padding-left:47.999999880000004px;text-indent:-23.999999940000002px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:100%;padding-left:47.999999880000004px;text-indent:-23.999999940000002px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">(b)</font><font style="font-family:inherit;font-size:10pt;">&nbsp;</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">Designed such internal control over financial reporting, or caused such internal control over 
financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</font></div><div style="line-height:100%;padding-left:47.999999880000004px;text-indent:-23.999999940000002px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:100%;padding-left:47.999999880000004px;text-indent:-23.999999940000002px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">(c)</font><font style="font-family:inherit;font-size:10pt;">&nbsp;</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report 
based on such evaluation; and</font></div><div style="line-height:100%;padding-left:47.999999880000004px;text-indent:-23.999999940000002px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:100%;padding-left:47.999999880000004px;text-indent:-23.999999940000002px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">(d)</font><font style="font-family:inherit;font-size:10pt;">&nbsp;</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and</font></div><div style="line-height:100%;padding-left:0px;text-indent:0px;"><font style="font-family:inher
it;font-size:10pt;">&nbsp;</font></div><div style="line-height:100%;padding-left:0px;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">5.</font><font style="font-family:inherit;font-size:10pt;">&nbsp;</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):</font></div><div style="line-height:100%;padding-left:0px;text-indent:0px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:100%;padding-left:47.999999880000004px;text-indent:-23.999999940000002px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">(a)</font><font style="font-family:inherit;font-size:10pt;">&nbsp;</fo
nt><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and</font></div><div style="line-height:100%;padding-left:47.999999880000004px;text-indent:-23.999999940000002px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:100%;padding-left:47.999999880000004px;text-indent:-23.999999940000002px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">(b)</font><font style="font-family:inherit;font-size:10pt;">&nbsp;</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.<
/font></div><div style="line-height:100%;padding-left:47.999999880000004px;text-indent:-23.999999940000002px;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><div style="line-height:100%;padding-left:0px;text-align:center;text-indent:0px;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td width="37.33333324px"></td><td></td><td></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:37.33333324px;"><div style="text-align:left;font-size:10pt;width:39.33333324px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Date:</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">August&nbsp;12, 2010</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;font-size:10pt;"><fon
t style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:37.33333324px;"><div style="overflow:hidden;height:19.999999950000003px;font-size:10pt;width:39.33333324px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;height:19.999999950000003px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;height:19.999999950000003px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:37.33333324px;"><div style="overflow:hidden;font-size:10pt;width:39.33333324px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font
- -family:inherit;font-size:10pt;background-color:transparent;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">/s/ Ralph S. Marimon</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:37.33333324px;"><div style="overflow:hidden;font-size:10pt;width:39.33333324px"><font style="font-fami
ly:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Ralph S. Marimon</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;width:37.33333324px;"><div style="overflow:hidden;font-size:10pt;width:39.33333324px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;font-style:italic;">Vice President, Finance and Chi
ef Financial Officer</font></div></td></tr></table></div></div><br><div style="font-family:Times New Roman;font-size:10pt;text-align:center;"><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></div>	</body>
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<TYPE>EX-32
<SEQUENCE>4
<FILENAME>quik2010070410qex32.htm
<DESCRIPTION>CEO AND CFO CERTIFICATIONS PURSUANT TO 18 U.S.C. SECTION 1350
<TEXT>
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<a name="sA69E4D9090A6ED371B4A39F20046E2AD"></a><div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></div><br><div style="line-height:120%;padding-right:0px;padding-bottom:0px;padding-top:0px;padding-left:0px;text-align:right;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;font-weight:bold;">Exhibit&nbsp;32 </font></div><div style="line-height:120%;padding-right:0px;padding-bottom:0px;padding-top:11.999999970000001px;padding-left:0px;text-align:center;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;font-weight:bold;">CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER </font></div><div style="line-height:120%;padding-right:0px;padding-bottom:0px;padding-top:0px;padding-left:0px;text-align:center;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10
pt;color:#000000;font-weight:bold;">PURSUANT TO </font></div><div style="line-height:120%;padding-right:0px;padding-bottom:0px;padding-top:0px;padding-left:0px;text-align:center;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;font-weight:bold;">18 U.S.C. SECTION&nbsp;1350, </font></div><div style="line-height:120%;padding-right:0px;padding-bottom:0px;padding-top:0px;padding-left:0px;text-align:center;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;font-weight:bold;">AS ADOPTED PURSUANT TO </font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;font-weight:bold;">SECTION&nbsp;906 OF THE SARBANES-OXLEY ACT OF 2002</font></div><div style="line-height:120%;text-align:center;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;font-weight:bold;">&nbsp;</font></div><div style="line-height:120%;text
- -align:center;"><div style="padding-top:10px;"><table style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;"><tr><td></td><td width="43.999999890000005px"></td><td></td></tr><tr><td colspan="3" style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I, E. Thomas Hart, certify, pursuant to 18 U.S.C. Section&nbsp;1350, as adopted pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of QuickLogic Corporation on Form&nbsp;10-Q for the quarter ended July&nbsp;4, 2010, fully complies with the requirements of Section&nbsp;13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Quarterly Report on Form&nbsp;10-Q fairly presents in all material respects the financial condition and results of operations of QuickLogic Corporation.</font></di
v></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;height:19.999999950000003px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="overflow:hidden;height:19.999999950000003px;font-size:10pt;width:45.999999890000005px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;height:19.999999950000003px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="text-align:left;font-size:10pt;width:45.999999890000005px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">By:</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">/s/ E. Thomas Hart</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family
:inherit;font-size:10pt;background-color:transparent;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="text-align:left;font-size:10pt;width:45.999999890000005px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Date:</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;"><div style="text-align:left;font-size:1
0pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">August&nbsp;12, 2010</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="text-align:left;font-size:10pt;width:45.999999890000005px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Name:</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">E. Thomas Hart</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="text-align:lef
t;font-size:10pt;width:45.999999890000005px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Title:</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;font-style:italic;">Chairman of the Board and Chief Executive Officer</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;height:19.999999950000003px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="overflow:hidden;height:19.999999950000003px;font-size:10pt;width:45.999999890000005px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;height:19.999999950000003px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"
>&nbsp;</font></div></td></tr><tr><td colspan="3" style="vertical-align:bottom;padding:0px;"><div style="font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font style="font-family:inherit;font-size:10pt;">I, Ralph S. Marimon, certify, pursuant to 18 U.S.C. Section&nbsp;1350, as adopted pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of QuickLogic Corporation on Form&nbsp;10-Q for the quarter ended July&nbsp;4, 2010, fully complies with the requirements of Section&nbsp;13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Quarterly Report on Form&nbsp;10-Q fairly presents in all material respects the financial condition and results of operations of QuickLogic Corporation.</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;height:19.999999950000003px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font
></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="overflow:hidden;height:19.999999950000003px;font-size:10pt;width:45.999999890000005px"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;height:19.999999950000003px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="text-align:left;font-size:10pt;width:45.999999890000005px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">By:</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:i
nherit;font-size:10pt;background-color:transparent;">/s/ Ralph S. Marimon</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="text-align:left;font-size:10pt;width:45.999999890000005px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Date:</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">August&nbsp;12, 2010</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="text-align:
left;font-size:10pt;width:45.999999890000005px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Name:</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Ralph S. Marimon</font></div></td></tr><tr><td style="vertical-align:bottom;padding:0px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></td><td style="vertical-align:bottom;padding:0px;width:43.999999890000005px;"><div style="text-align:left;font-size:10pt;width:45.999999890000005px"><font style="font-family:inherit;font-size:10pt;background-color:transparent;">Title:</font></div></td><td style="vertical-align:bottom;padding:0px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:transparent;font-style:italic;font-weight:normal;">Vice President, Finance and Chief Fin
ancial Officer</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:center;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div><br><div style="font-family:Times New Roman;font-size:10pt;text-align:center;"><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;">&nbsp;</font></div></div>	</body>
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