Earlier today we filed an 8-K with the SEC announcing the completion of a secondary public offering. As is noted in the filing, the net proceeds from the offering, after deducting the underwriting discounts and commissions and estimated offering expenses, and exclusive of any funds raised in the future via the cash exercise of warrants, are expected to be approximately $14.0 million. We believe this funding will help us build on the success and leverage the momentum I outlined during our May 9th conference call.

With large brand-name OEMs launching new products using our unique and innovative solutions, we are benefiting from increased visibility with other large OEMs and internet platform companies. Due to this and other strategic considerations, we determined the best way for us to leverage our position would be to strengthen our balance sheet now.

The strategic benefits of increasing our cash include:

• It gives our current customers security that we are well positioned to support their planned production with inventory and technical resources.
• It gives us more flexibility with our suppliers as we negotiate orders and scheduling for the inventory we will need to support scheduled and anticipated new product launches by our customers.
• It enables us to focus our discussions with large OEMs that have not yet committed to using our platforms and IP on the merits of our solutions without having to deal with questions regarding our financial resources.
• It enables us to continue funding for our strategic product and IP roadmaps.

As I noted in our May 9th conference call, I am very enthusiastic and optimistic regarding the depth and breadth of our funnel and believe this is an exciting time for QuickLogic as we build our reputation as a recognized and valued supplier in our targeted markets.