SOURCE: Data I/O Corporation

Data I/O Corporation

April 26, 2010 16:30 ET

Data I/O Announces First Quarter 2010 Revenue Growth and Profitability

REDMOND, WA--(Marketwire - April 26, 2010) - Data I/O Corporation (NASDAQ: DAIO), the leading provider of manual and automated device programming systems, today announced financial results for the first quarter ended March 31, 2010.

Revenues for the first quarter of 2010 were $6.3 million, compared with $4.4 million in the first quarter of 2009 and $5.0 million in the fourth quarter of 2009. We increased sales in all geographic regions compared to the first quarter of 2009, as well as in each of our product families, but in particular in our automated systems. In accordance with U.S. generally accepted accounting principles (GAAP), net income in the first quarter of 2010 was $709,000, or $0.08 per diluted share, compared with net loss of ($464,000), or ($0.05) per share, in the first quarter of 2009.

Gross margin as a percentage of sales in the first quarter of 2010 was 60.0 percent, compared with 55.7 percent in the first quarter of 2009 and 53.4 percent in the fourth quarter of 2009. This gross margin percentage increase compared to the first and fourth quarters of 2009 was primarily due to the impact of increased sales volume relative to fixed operating costs and the product mix, especially from additional software revenues. Backlog at March 31, 2010 was $1.1 million, compared to $1.9 million at the end of the fourth quarter of 2009 and to $1.2 million at March 31, 2009. Part of the quarter's reduction in backlog was due to a shift to deferred revenue which increased approximately $290,000.

The company's cash position at March 31, 2010 increased to $15.7 million. Delinquent accounts over 60 days have been reduced to $196,000 from $779,000 one year ago, with the overall accounts receivable balance of $4.7 million at March 31, 2010 and $3.2 million at December 31, 2009. We have continued to focus on reducing our inventories which are at $3.7 million at March 31, 2010 down from $4.9 million one year ago.

"We are pleased to report improved levels of business and profits," said Fred Hume, President and CEO. "We are excited by our increase in software related business with two large deals landed in the quarter and the contribution of the software business to increasing gross margins."

"We are thrilled that our FlashCORE III received a 2010 NPI Award at the APEX trade show last month and a 2010 EMS Asia Award at NEPCON Shanghai this month," said Hume. "FlashCORE III is driving new sales opportunities, upgrades and replacement sales for our ProLINE RoadRunner, FLX, FlashPAK and PS product families."

Conference Call Information

A conference call discussing the first quarter and 2010 financial results will follow this release today at 2:00 p.m. Pacific time/5:00 p.m. Eastern time. To listen to the conference call, please dial (703) 639-1259 passcode: DAIO. A taped replay will be made available approximately one hour after the conclusion of the call and will remain available for one week. To access the replay, please dial (320) 365-3844, access code: 154171. The conference call will also be simultaneously web cast over the Internet; visit the News and Events section of the Data I/O Corporation website at http://www.dataio.com to access the call from the site. This web cast will be recorded and available for replay on the Data I/O Corporation website approximately two hours after the conclusion of the conference call.

About Data I/O Corporation

With over 35 years of expertise in delivering intellectual property to programmable devices, Data I/O offers complete, integrated manufacturing solutions in wireless, automotive, programming center, semiconductor, and industrial control market segments for OEM, ODM, EMS and semiconductor companies. Data I/O is the leader in programming and provides hardware and software solutions for turn-key programming and device testing services, as well as in-system (on-board), in-line (right before use at the SMT line), or in-socket (off-line) programming. These solutions are scalable for small, medium and large volume applications with different device mixes. Data I/O Corporation has headquarters in Redmond, Wash., with sales and services worldwide. For further information, visit the company's website at http://www.dataio.com.

Forward Looking Statement

Statements in this news release concerning future results from operations, financial position, economic conditions, product releases and any other statement that may be construed as a prediction of future performance or events are forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause actual results to differ materially from those expressed or implied by such statements. These factors include uncertainties as to levels of orders, ability to record revenues, release schedules, market acceptance of new products, changes in economic conditions and market demand, pricing and other activities by competitors, and other risks including those described from time to time in the Company's filings on Forms 10K and 10Q with the Securities and Exchange Commission (SEC), press releases and other communications.

                           DATA I/O CORPORATION
                    COMPARATIVE STATEMENTS OF EARNINGS


(in thousands except per share data)               First Quarter
                                          --------------------------------
                                                                  Percent
                                          3/31/2010   3/31/2009    Change
                                          ----------  ----------  --------
Net sales                                 $    6,252  $    4,383      42.6%
Gross margin                                   3,753       2,443      53.6%
Gross margin as percent of sales                60.0%       55.7%      4.3%
Operating expenses:
  Research & development                         950       1,033      -8.0%
  Selling, general and administrative          1,938       1,676      15.6%
  Provision for business restructure               0          22
                                          ----------  ----------
    Total operating expenses                   2,888       2,731       5.7%
  Gain on sale                                     3           1
                                          ----------  ----------
Operating income(loss)                           868        (287)
  Non-operating income (expense)                 (57)        (49)
                                          ----------  ----------
Income(loss) from operations before taxes        811        (336)
  Income tax expense(benefit)                    102         128
                                          ----------  ----------
Net income(loss)                          $      709  ($     464)
                                          ==========  ==========

                                          ----------  ----------
Total diluted earnings(loss) per share    $     0.08  ($    0.05)
                                          ==========  ==========

Diluted weighted average shares
 outstanding                                   9,080       8,876



                       CONDENSED BALANCE SHEET
                           (in thousands)

                                          3/31/2010   12/31/2009
                                          ----------  ----------
Cash and cash equivalents                 $   15,684  $   15,642
Accounts receivable, net                       4,727       3,192
Inventories                                    3,745       3,947
Other current assets                             342         434
Land, building and equipment                   1,740       1,819
Other long-term assets                            98         102
                                          ----------  ----------
    Total assets                          $   26,336  $   25,136
                                          ==========  ==========

Current liabilities                       $    5,042  $    4,479
Long term debt and other liabilities              95         159
Shareholders' equity                          21,199      20,498
                                          ----------  ----------
    Total liabilities and shareholders'
     equity                               $   26,336  $   25,136
                                          ==========  ==========

Contact Information

  • Joel Hatlen
    Vice President and Chief Financial Officer
    (425) 881-6444

    Data I/O Corporation
    6464 185th Ave. NE, Suite 101
    Redmond, WA 98052