SOURCE: Data I/O Corporation

Data I/O Corporation

October 24, 2013 16:05 ET

Data I/O Reports Third Quarter 2013 Results

Announced a Q3 Profit, Revenue of $5.4M and Bookings of $4.3M

REDMOND, WA--(Marketwired - Oct 24, 2013) - Data I/O Corporation (NASDAQ: DAIO), the leading global provider of advanced programming and IP management solutions for flash, flash-memory based intelligent devices and microcontrollers, today announced financial results for the third quarter ended September 30, 2013.

Highlights

  • Net sales of $5.4 million, up 24% compared to Q3 2012
  • Net income of $146,000, compared to a loss of ($1.3) million for Q3 2012
  • EBITDA of $228,000, compared to an EBITDA loss of ($1.1) million for Q3 2012
  • Release of PSV7000 a new automated programming solution
  • Bookings of $4.3 million, up from $4.1 million for Q3 2012

Financial Results
Net sales in the third quarter of 2013 were $5.4 million, up 24% compared with $4.3 million in the third quarter of 2012. Net income in the third quarter of 2013 was $146,000, or $0.02 per diluted share, compared with net loss of ($1.3) million or ($0.17) per share, in the third quarter of 2012. For the third quarter of 2013, gross margin as a percentage of sales was 47.7%, an improvement compared to 44.7% in the third quarter of 2012 primarily due to the increased sales volume. Bookings for the third quarter of 2013 were $4.3 million and our backlog at the end of the quarter was $1.3 million.

"We were very pleased to return to EBITDA and operating profitability in Q3," stated Anthony Ambrose, President and CEO. "After starting well, bookings decelerated and were softer than expected at $4.3M for the quarter. We continue to see economic uncertainty in many countries and markets."

"On September 24th, we released a new automated programming solution, the PSV7000," stated Ambrose. "With industry leading velocity, versatility and value, the PSV7000 delivers on the demands of leading wireless, automotive and consumer electronics manufacturers and cuts the total cost of programming by up to 50%. We are inviting customers to see the new PSV7000 at the Productronica trade show November 12th-15th in Munich Germany."

"EBITDA," Earnings Before Interest [income $19,000], Taxes [$31,000], and Depreciation and Amortization [$131,000], was $228,000 in the third quarter of 2013 compared to an EBITDA loss of ($1.1) million in the third quarter of 2012. Operating expenses for the quarter were $2.5 million, and compared to the third quarter of 2012 were down $822,000, primarily due to restructuring actions, less amortization, and cost control actions. Equity compensation expense (a non-cash item) for the third quarter of 2013 was $102,000.

Conference Call Information
A conference call discussing the third quarter 2013 financial results will follow this release today at 2 p.m. Pacific time/5 p.m. Eastern time. To listen to the conference call, please dial (612) 234-9960, passcode: DAIO. A 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: 305572. 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
Since 1972 Data I/O has developed innovative solutions to enable the design and manufacture of electronic products for automotive, wireless, consumer electronics, industrial controls, medical, and military/aerospace markets. Today, our customers manufacture tens of millions of products each year using Data I/O programming solutions to reliably, securely, and cost-effectively deliver their Intellectual Property into programmable devices. Data I/O provides programming solutions for devices in any package, whether programmed in a socket or on a circuit board. Our expertise in programmable integrated circuits, global supply chain processes, and IP management and protection helps bring innovative new products to life. These solutions are backed by a global network of Data I/O support and service providers, assuring success for our customers.

Forward Looking Statement and Non-GAAP financial measures
Statements in this news release concerning economic outlook, expected revenue, expected margins, expected results, orders, deliveries, backlog and financial positions, as well as restructure actions breakeven point, 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 the ability to record revenues based upon the timing of product deliveries and installations, accrual of expenses, changes in economic conditions and other risks including those described in the Company's filings on Forms 10K and 10Q with the Securities and Exchange Commission (SEC), press releases and other communications.

Non-GAAP financial measures, such as EBITDA, should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. We believe that this non-GAAP financial measure provides meaningful supplemental information regarding the Company's results and facilitates the comparison of results.

- Summary Financial Data Attached -

   
DATA I/O CORPORATION  
CONSOLIDATED STATEMENTS OF OPERATION  
(in thousands, except per share amounts)  
(UNAUDITED)  
                       
    Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
    2013   2012     2013     2012  
                               
Net Sales   $ 5,357   $ 4,311     $ 15,387     $ 13,350  
Cost of goods sold     2,801     2,384       7,351       6,541  
  Gross margin     2,556     1,927       8,036       6,809  
Operating expenses:                              
  Research and development     1,109     1,429       3,430       4,248  
  Selling, general and administrative     1,367     1,656       4,959       5,901  
  Provision for business restructuring     1     214       642       214  
    Total operating expenses     2,477     3,299       9,031       10,363  
    Operating income (loss)     79     (1,372 )     (995 )     (3,554 )
Non-operating income (expense):                              
  Interest income     19     31       93       238  
  Foreign currency transaction gain (loss)     17     (32 )     (42 )     (68 )
  Total non-operating income (expense)     36     (1 )     51       170  
Income (loss) before income taxes     115     (1,373 )     (944 )     (3,384 )
Income tax (expense) benefit     31     44       6       321  
Net income (loss)   $ 146   $ (1,329 )   $ (938 )   $ (3,063 )
                               
                               
  Basic earnings (loss) per share   $ 0.02   $ (0.17 )   $ (0.12 )   $ (0.38 )
  Diluted earnings (loss) per share   $ 0.02   $ (0.17 )   $ (0.12 )   $ (0.38 )
  Weighted-average basic shares     7,773     7,740       7,761       8,080  
  Weighted-average diluted shares     7,819     7,740       7,761       8,080  
                                 
                                 
   
DATA I/O CORPORATION  
CONSOLIDATED BALANCE SHEETS  
(in thousands, except share data)  
(UNAUDITED)  
             
    September 30,
2013
    December 31,
2012
 
                 
ASSETS                
CURRENT ASSETS:                
  Cash and cash equivalents   $ 10,294     $ 10,528  
  Trade accounts receivable, net of allowance for doubtful accounts of $99 and $89, respectively    
4,031
     
2,648
 
  Inventories     3,551       4,033  
  Other current assets     283       486  
    TOTAL CURRENT ASSETS     18,159       17,695  
                 
Property, plant and equipment - net     881       1,006  
Intangible software technology - net     32       35  
Other assets     87       86  
    TOTAL ASSETS   $ 19,159     $ 18,822  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
CURRENT LIABILITIES:                
  Accounts payable   $ 1,226     $ 850  
  Accrued compensation     1,068       1,183  
  Deferred revenue     1,317       1,238  
  Other accrued liabilities     612       539  
  Accrued costs of business restructuring     235       25  
  Income taxes payable     9       23  
    TOTAL CURRENT LIABILITIES     4,467       3,858  
                 
Long-term other payables     385       219  
                 
COMMITMENTS     -       -  
                 
STOCKHOLDERS' EQUITY                
Preferred stock -                
    Authorized, 5,000,000 shares, including 200,000 shares of Series A Junior Participating Issued and outstanding, none     -      
-
 
Common stock, at stated value -                
    Authorized, 30,000,000 shares Issued and outstanding, 7,774,307 shares as of September 30, 2013 and 7,741,686 shares as of December 31, 2012    
18,253
     
17,928
 
Accumulated earnings (deficit)     (5,404 )     (4,466 )
Accumulated other comprehensive income     1,458       1,283  
    TOTAL STOCKHOLDERS' EQUITY     14,307       14,745  
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 19,159     $ 18,822  
                     
                     

Contact Information

  • Contact:
    Joel Hatlen
    Vice President and Chief Financial Officer
    Email Contact

    Data I/O Corporation
    6464 185th Ave. NE, Suite 101
    Redmond, WA 98052
    (425) 881-6444