QuickLogic Corporation (NASDAQ:QUIK) Could Break Further Down

[[tagnumber 0]]The chart of QuickLogic Corporation (NASDAQ:QUIK) looks very bearish for today after the stock fell down to the 20–day moving average in five consecutive trading session. The company recently announced a drop in sales and it is now even more dependent on one single client that makes up for the largest part of the revenue.[[tagnumber 1]] [[tagnumber 0]][[tagnumber 3]][[tagnumber 1]] [[tagnumber 0]]QUIK closed the last trading session with another 2.21% decline at $1.33 per share. The trading volume was far below the average with around 35,000 traded shares. The lack of trading interest for QUIK is also noticed in the its short interest which dropped dramatically in August. It looks like the stock could fall into the lower half of the trading range with technical indicators also confirming the downtrend.[[tagnumber 1]] [[tagnumber 0]]Yesterday, a new press release could not make QUIK more attractive for traders. The company announced it had added new user contexts and gestures to its extensive SenseMe library of sensor algorithms. The new additions include a “swimming” context, an enhanced low energy pedometer and “wake up” gesture for smartwatches.[[tagnumber 1]] [[tagnumber 0]]QUIK second quarter 10–Q shows sales of $5 million for the three months which represents a 19% decline from the first quarter and a 27% decrease from the second quarter of last year. According to the management, the drop in sales is due to lower shipments of the ArcticLink III display solution platform to Samsung.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 12]]At the same time, the portion of Samsung sales increased to 69% of new products and 41% of total product sales, which means stronger dependency on a single client that could be bearish for the stock on the long term. In addition, QUIK has high dilution risks as well as the company is not profitable and finances its operations through stock sales.[[tagnumber 1]] [[tagnumber 14]] [[tagnumber 1]]