REDMOND, WA--(Marketwired - Jul 31, 2014) - Data I/O Corporation (
Summary
- Net sales of $5.6 million in Q2 2014.
- Net income of $447,000 in Q2 2014, compared to a net loss of $624,000 in Q2 2013.
- Adjusted EBITDA excluding equity compensation was $687,000 in Q2 2014, compared to a loss of $362,000 in Q2 2013.
- Bookings of $6.3 million in Q2 2014.
- PSV7000 Automated Programming System leads sales growth.
- New PSV3000 Automated Programming System introduced in Q3 for the Asian market.
"We were very pleased to report strong profits and revenue growth in Q2 led by the PSV7000," said Anthony Ambrose, President and CEO. "We are seeing the positive results of our plan to invest in new products while controlling overall costs to provide strong operating leverage. The PSV7000 continues to exceed bookings expectations with existing and new customers. We won a significant automotive infotainment customer that had previously purchased from a competitor in North America. The fully configured PSV7000 was able to complete their job faster, and at a lower total cost of programming by a significant margin. This is a good example of how we are gaining market share and building a strong recurring revenue base. Bookings continued their strength into July and our sales funnel has grown substantially from the start of the year."
"We announced yesterday our new PSV3000 automated programming system with a focus on new customers in Asian markets," said Ambrose. "The PSV3000 is the cost effective entry point to quality Data I/O programming and will assist customers in the transition from manual to automated programming at low total cost without sacrificing quality and performance."
Financial Results Net sales in the second quarter of 2014 were $5.6 million up 6% compared with $5.3 million in the second quarter of 2013 and up 16% sequentially from $4.8 million in the first quarter of 2014. Net income in the second quarter of 2014 was $447,000, or $0.06 per share, compared with net loss of $624,000 or $0.08 per share, in the second quarter of 2013. For the second quarter of 2014, gross margin as a percentage of sales was 54.0%, compared to 55.8% in the second quarter of 2013. Bookings in the second quarter of 2014 were $6.3 million, down 7% compared to $6.7 million in the second quarter of 2013 and up 8.5% from $5.8 million in the first quarter of 2014. Backlog at June 30, 2014 was $2.7 million compared to $2.4 million at June 30, 2013. Deferred revenue at June 30, 2014 was $2.1 million compared to $1.2 million at June 30, 2013.
Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") were earnings of $562,000 in the second quarter of 2014 compared to an EBITDA loss of $498,000 in the second quarter of 2013. Equity compensation expense (a non-cash item) in the second quarter of 2014 and 2013 was $125,000 and $136,000, respectively. Adjusted EBITDA excluding equity compensation were earnings of $687,000 in the second quarter of 2014, compared to a loss of $362,000 in the second quarter of 2013.
Operating expenses in the second quarter of 2014 were $2.6 million, and compared to $3.5 million, including a restructuring charge of $642,000, in the second quarter of 2013, were down $915,000, primarily due to restructure and cost control actions.
Conference Call Information A conference call discussing the second quarter ended June 30, 2014 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) 332-0107, 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: 332479. 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 and adjusted EBITDA excluding equity compensation, should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding the Company's results and facilitate the comparison of results.
| DATA I/O CORPORATION | ||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATION | ||||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||||
| (UNAUDITED) | ||||||||||||||||||
| Three Months Ended Jun. 30, | Six Months Ended Jun. 30, | |||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||||
| Net Sales | $ | 5,599 | $ | 5,271 | $ | 10,418 | $ | 10,029 | ||||||||||
| Cost of goods sold | 2,577 | 2,332 | 4,901 | 4,549 | ||||||||||||||
| Gross margin | 3,022 | 2,939 | 5,517 | 5,480 | ||||||||||||||
| Operating expenses: | ||||||||||||||||||
| Research and development | 1,173 | 1,117 | 2,323 | 2,321 | ||||||||||||||
| Selling, general and administrative | 1,456 | 1,785 | 3,144 | 3,592 | ||||||||||||||
| Provision for business restructuring | - | 642 | 13 | 642 | ||||||||||||||
| Total operating expenses | 2,629 | 3,544 | 5,480 | 6,555 | ||||||||||||||
| Operating income (loss) | 393 | (605 | ) | 37 | (1,075 | ) | ||||||||||||
| Non-operating income (expense): | ||||||||||||||||||
| Interest income | 53 | 56 | 72 | 74 | ||||||||||||||
| Foreign currency transaction gain (loss) | 8 | (55 | ) | 27 | (57 | ) | ||||||||||||
| Total non-operating income (expense) | 61 | 1 | 99 | 17 | ||||||||||||||
| Income (loss) before income taxes | 454 | (604 | ) | 136 | (1,058 | ) | ||||||||||||
| Income tax (expense) benefit | (7 | ) | (20 | ) | (32 | ) | (25 | ) | ||||||||||
| Net income (loss) | $ | 447 | $ | (624 | ) | $ | 104 | $ | (1,083 | ) | ||||||||
| Basic earnings (loss) per share | $ | 0.06 | $ | (0.08 | ) | $ | 0.01 | $ | (0.14 | ) | ||||||||
| Diluted earnings (loss) per share | $ | 0.06 | $ | (0.08 | ) | $ | 0.01 | $ | (0.14 | ) | ||||||||
| Weighted-average basic shares | 7,814 | 7,762 | 7,801 | 7,756 | ||||||||||||||
| Weighted-average diluted shares | 7,899 | 7,762 | 7,892 | 7,756 | ||||||||||||||
| DATA I/O CORPORATION | ||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||
| (in thousands, except share data) | ||||||||||
| (UNAUDITED) | ||||||||||
| Jun. 30, 2014 | Dec. 31, 2013 | |||||||||
| ASSETS | ||||||||||
| CURRENT ASSETS: | ||||||||||
| Cash and cash equivalents | $ | 8,220 | $ | 10,426 | ||||||
| Trade accounts receivable, net of allowance for doubtful accounts of $107 and $87, respectively | 5,171 | 1,980 | ||||||||
| Inventories | 3,952 | 3,770 | ||||||||
| Other current assets | 331 | 395 | ||||||||
| TOTAL CURRENT ASSETS | 17,674 | 16,571 | ||||||||
| Property, plant and equipment - net | 1,090 | 843 | ||||||||
| Other assets | 88 | 88 | ||||||||
| TOTAL ASSETS | $ | 18,852 | $ | 17,502 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| CURRENT LIABILITIES: | ||||||||||
| Accounts payable | $ | 1,315 | $ | 720 | ||||||
| Accrued compensation | 1,194 | 1,107 | ||||||||
| Deferred revenue | 2,077 | 1,170 | ||||||||
| Other accrued liabilities | 773 | 597 | ||||||||
| Accrued costs of business restructuring | 273 | 723 | ||||||||
| Income taxes payable | 27 | 10 | ||||||||
| TOTAL CURRENT LIABILITIES | 5,659 | 4,327 | ||||||||
| Long-term other payables | 236 | 313 | ||||||||
| 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, 7,843,526 shares as of | ||||||||||
| June 30, 2014 and 7,786,053 shares as of | ||||||||||
| December 31, 2013 | 18,530 | 18,343 | ||||||||
| Accumulated earnings (deficit) | (6,938 | ) | (7,042 | ) | ||||||
| Accumulated other comprehensive income | 1,365 | 1,561 | ||||||||
| TOTAL STOCKHOLDERS' EQUITY | 12,957 | 12,862 | ||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 18,852 | $ | 17,502 | ||||||
| NON-GAAP FINANCIAL MEASURE RECONCILIATION | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |||||||||||||
| (in thousands) | ||||||||||||||||
| Net Income (loss) | $ | 447 | $ | (624 | ) | $ | 104 | $ | (1,083 | ) | ||||||
| Interest (income) expense | (53 | ) | (56 | ) | (72 | ) | (74 | ) | ||||||||
| Taxes | 7 | 20 | 32 | 25 | ||||||||||||
| Depreciation and amortization | 161 | 162 | 320 | 343 | ||||||||||||
| EBITDA earnings (loss) | $ | 562 | $ | (498 | ) | $ | 384 | $ | (789 | ) | ||||||
| Equity Compensation | 125 | 136 | 211 | 206 | ||||||||||||
| Adjusted EBITDA earnings (loss) excluding equity compensation | $ | 687 | $ | (362 | ) | $ | 595 | $ | (583 | ) | ||||||
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
