Data I/O Reports Third Quarter 2013 Results

Data I/O Reports Third Quarter 2013 Results 
Announced a Q3 Profit, Revenue of $5.4M and Bookings of $4.3M 
REDMOND, WA -- (Marketwired) -- 10/24/13 --  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    Nine Months Ended  
                                     September 30,         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,   December 31,  
                                                  2013            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: 
Joel Hatlen 
Vice President and Chief Financial Officer
investorrelations@dataio.com  
Data I/O Corporation
6464 185th Ave. NE, Suite 101
Redmond, WA 98052 
(425) 881-6444