Data I/O Reports First Quarter 2013 Results

Marketwired

REDMOND, WA--(Marketwired - Apr 29, 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 first quarter ended March 31, 2013.

Highlights

  • Net sales of $4.8 million up 29% compared to Q1 2012 and up 27% compared to Q4 2012
  • Net loss of ($0.5) million compared to a net loss of ($1.7) million in Q1 2012
  • 2 new significant customers acquired
  • Backlog of $0.9 million at end of quarter
  • Additional restructure actions announced in April 2013

Financial Results
Net sales for the first quarter of 2013 were $4.8 million, up 29% compared with $3.7 million in the first quarter of 2012. Net loss in the first quarter of 2013 was ($0.5) million, or ($0.06) per share, compared with net loss of ($1.7) million or ($0.19) per share, in the first quarter of 2012. 

The Company's increase in orders and net sales was primarily due to purchasing by wireless related customers and a new consumer home electronics customer. The sales growth was primarily in the Americas. Orders for the first quarter of 2013 were $4.8 million, up 13%, compared with $4.2 million in the first quarter of 2012. 

"During the quarter, we won two significant new customers, one in home electronics and the second an electronics manufacturing service," stated Anthony Ambrose, President and CEO. "We also had capacity purchases from two large wireless customers to support their new product ramps. We announced several performance enhancements to our FLASHCORE III programming engine to support faster FLASH memory programming performance, and a second generation 3D co-planarity solution for our automotive customers. In April, we have taken further restructure actions to reduce costs and provide the financial flexibility to move development projects forward by deploying the right resources where needed."

"EBITDA," Earnings Before Interest [income $18,000], Taxes [$5,000], and Depreciation and Amortization [$179,000], was a loss of $293,000. This non-GAAP financial measure 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.

Conference Call Information
A conference call discussing the first 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 (480) 629-9035 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: 290613. 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
Celebrating 40 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 expected revenue, expected margins, expected loss, orders and financial positions, cash position, restructure actions, 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 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.

   
   
DATA I/O CORPORATION  
CONSOLIDATED STATEMENTS OF OPERATIONS  
(in thousands, except per share amounts)  
(UNAUDITED)  
             
    Three Months Ended
March 31,
 
    2013     2012  
             
Net Sales   $ 4,759     $ 3,679  
Cost of goods sold     2,218       1,737  
  Gross margin     2,541       1,942  
Operating expenses:                
  Research and development     1,205       1,392  
  Selling, general and administrative     1,806       2,250  
    Total operating expenses     3,011       3,642  
    Operating income (loss)     (470 )     (1,700 )
Non-operating income (expense):                
  Interest income     18       33  
  Foreign currency transaction gain (loss)     (3 )     9  
  Total non-operating income (loss)     15       42  
Income (loss) before income taxes     (455 )     (1,658 )
Income tax (expense) benefit     (4 )     (19 )
Net income (loss)   $ (459 )   $ (1,677 )
                 
                 
Basic earnings (loss) per share   $ (0.06 )   $ (0.19 )
Diluted earnings (loss) per share   $ (0.06 )   $ (0.19 )
Weighted-average basic shares     7,749       8,765  
Weighted-average diluted shares     7,749       8,765  
                 
                 
   
   
DATA I/O CORPORATION  
CONSOLIDATED BALANCE SHEETS  
(in thousands, except share data)  
(UNAUDITED)  
             
    March 31,
2013
    December 31,
2012
 
             
ASSETS            
CURRENT ASSETS:            
  Cash and cash equivalents   $ 10,392     $ 10,528  
  Trade accounts receivable, net of allowance for doubtful accounts of $89 and $89, respectively     2,870       2,648  
  Inventories     3,626       4,033  
  Other current assets     394       486  
    TOTAL CURRENT ASSETS     17,282       17,695  
                 
Property, plant and equipment - net     847       1,006  
Intangible software technology-net     34       35  
Other assets     84       86  
    TOTAL ASSETS   $ 18,247     $ 18,822  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
CURRENT LIABILITIES:                
  Accounts payable   $ 981     $ 850  
  Accrued compensation     900       1,183  
  Deferred revenue     1,209       1,238  
  Other accrued liabilities     625       539  
  Accrued costs of business restructuring     -       25  
  Income taxes payable     23       23  
    TOTAL CURRENT LIABILITIES     3,738       3,858  
                 
Long-term other payables     228       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, 7,752,859 and 7,741,686 shares, respectively     18,002       17,928  
Accumulated earnings (deficit)     (4,925 )     (4,466 )
Accumulated other comprehensive income     1,204       1,283  
    TOTAL STOCKHOLDERS' EQUITY     14,281       14,745  
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 18,247     $ 18,822  
                     
                     
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
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