While emphasizing cash and working capital management, financial prudence and operational excellence, Data I/O’s financial condition remained strong with cash increasing to $14.2 million at December 31, 2020 from $13.0 million at September 30, 2020 and $13.9 million at December 31, 2019. The Company had net working capital of $18.1 million at December 31, 2020, and continues to have no debt.
Conference Call Information
A conference call discussing financial results for the fourth quarter ended December 31, 2020 will follow this release today at 2 p.m. Pacific Time/5 p.m. Eastern Time. To listen to the conference call, please dial 412-902-6510. A replay will be made available approximately one hour after the conclusion of the call. To access the replay, please dial 412-317-0088, access code 10151977. The conference call will also be simultaneously webcast over the Internet; visit the Webcasts and Presentations section of the Data I/O Corporation website at www.dataio.com to access the call from the site. This webcast will be recorded and available for replay on the Data I/O Corporation website approximately one hour 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, Internet-of-Things, medical, wireless, consumer electronics, industrial controls and other electronic devices. Today, our customers use Data I/O security deployment and programming solutions to reliably, securely, and cost-effectively bring innovative new products to life. These solutions are backed by a global network of Data I/O support and service professionals, ensuring success for our customers.
Learn more at dataio.com
Forward-Looking Statement and Non-GAAP financial measures
Statements in this news release concerning economic outlook, expected revenue, expected margins, expected savings, expected results, orders, deliveries, backlog and financial positions, as well as 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. Forward-looking statement disclaimers also apply to the global COVID-19 pandemic, including the expected effects on the Company’s business from COVID-19, the duration and scope, impact on the demand for the Company’s products, and the pace of recovery for the COVID-19 pandemic to subside. These factors include uncertainties as to the ability to record revenues based upon the timing of product deliveries, installations and acceptance, accrual of expenses, coronavirus related business interruptions, 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, Adjusted EBITDA excluding equity compensation and impairment & related charges, and Adjusted gross margin 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 OPERATIONS |
||||||||
(in thousands, except per share amounts) |
||||||||
(UNAUDITED) |
||||||||
Three Months Ended
|
|
Twelve Months Ended
|
||||||
2020 |
|
2019 |
|
2020 |
|
2019 |
||
Net Sales |
$4,941 |
$5,868 |
$20,328 |
$21,568 |
||||
Cost of goods sold |
2,619 |
2,588 |
9,506 |
9,018 |
||||
Gross margin |
2,322 |
3,280 |
10,822 |
12,550 |
||||
Operating expenses: |
||||||||
Research and development |
1,594 |
1,583 |
6,357 |
6,451 |
||||
Selling, general and administrative |
1,567 |
2,039 |
6,891 |
7,377 |
||||
| Impairment |
652 |
- |
652 |
- |
||||
| Total operating expenses |
3,813 |
3,622 |
13,900 |
13,828 |
||||
| Operating income(loss) |
(1,491) |
(342) |
(3,078) |
(1,278) |
||||
| Non-operating income: |
||||||||
| Interest income |
1 |
6 |
14 |
53 |
||||
| Gain on sale of assets |
- |
4 |
- |
64 |
||||
| Foreign currency transaction gain (loss) |
(211) |
(185) |
(513) |
5 |
||||
| Total non-operating income |
(210) |
(175) |
(499) |
122 |
||||
| Income(loss) before income taxes |
(1,701) |
(517) |
(3,577) |
(1,156) |
||||
| Income tax (expense) benefit |
55 |
21 |
(387) |
(31) |
||||
| Net income(loss) |
($1,646) |
($496) |
($3,964) |
($1,187) |
||||
| Basic earnings(loss) per share |
($0.20) |
($0.06) |
($0.48) |
($0.14) |
||||
| Diluted earnings(loss) per share |
($0.20) |
($0.06) |
($0.48) |
($0.14) |
||||
| Weighted-average basic shares |
8,416 |
8,212 |
8,333 |
8,247 |
||||
| Weighted-average diluted shares |
8,416 |
8,212 |
8,333 |
8,247 |
||||
| DATA I/O CORPORATION |
|||
| CONSOLIDATED BALANCE SHEETS |
|||
| (in thousands, except share data) |
|||
| (UNAUDITED) |
|||
|
December 31,
|
December 31,
|
||
| ASSETS |
|||
| CURRENT ASSETS: |
|||
| Cash and cash equivalents |
$14,167 |
$13,936 |
|
| Trade accounts receivable, net of allowance for |
|||
| doubtful accounts of $66 and $80, respectively |
2,494 |
4,099 |
|
| Inventories |
5,270 |
5,020 |
|
| Other current assets |
1,319 |
924 |
|
| TOTAL CURRENT ASSETS |
23,250 |
23,979 |
|
| Property, plant and equipment – net |
1,216 |
1,668 |
|
| Income tax receivable |
- |
640 |
|
| Other assets |
1,126 |
1,994 |
|
| TOTAL ASSETS |
$25,592 |
$28,281 |
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||
| CURRENT LIABILITIES: |
|||
| Accounts payable |
$1,245 |
$1,151 |
|
| Accrued compensation |
1,509 |
1,541 |
|
| Deferred revenue |
1,068 |
1,387 |
|
| Other accrued liabilities |
1,307 |
1,372 |
|
| Income taxes payable |
62 |
31 |
|
| TOTAL CURRENT LIABILITIES |
5,191 |
5,482 |
|
| Operating lease liabilities |
588 |
1,178 |
|
| Long-term other payables |
174 |
91 |
|
| 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, 8,416,335 shares as of December 31, |
|||
| 2020 and 8,212,748 shares as of December 31, 2019 |
20,071 |
18,748 |
|
| Accumulated earnings (deficit) |
(1,456) |
2,508 |
|
| Accumulated other comprehensive income |
1,024 |
274 |
|
| TOTAL STOCKHOLDERS’ EQUITY |
19,639 |
21,530 |
|
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$25,592 |
$28,281 |
|
| DATA I/O CORPORATION |
||||||||
| NON-GAAP FINANCIAL MEASURE RECONCILIATION |
||||||||
|
Three Months Ended
|
Twelve Months Ended
|
|||||||
| 2020 |
2019 |
2020 |
2019 |
|||||
| (in thousands) |
||||||||
| Net Income (loss) |
($1,646) |
($496) |
($3,964) |
($1,187) |
||||
| Interest (income) |
(1) |
(6) |
(14) |
(53) |
||||
| Taxes |
(55) |
(21) |
387 |
31 |
||||
| Depreciation and amortization |
194 |
196 |
815 |
868 |
||||
| EBITDA |
($1,508) |
($327) |
($2,776) |
($341) |
||||
| Equity compensation |
371 |
260 |
1,467 |
1,171 |
||||
| Impairment & related charges |
943 |
- |
943 |
- |
||||
| Adjusted EBITDA, excluding equity compensation and impairment & related charges |
($194) |
($67) |
($366) |
$830 |
||||
| (in thousands) |
||||||||
| Gross Margin |
$2,322 |
$3,280 |
$10,822 |
$12,550 |
||||
| Impairment related obsolete inventory charges |
291 |
- |
291 |
- |
||||
| Adjusted gross margin excluding impairment related obsolete inventory charges |
$2,613 |
$3,280 |
$11,113 |
$12,550 |
||||
| Gross Margin as a % of sales |
47.0% |
55.9% |
53.2% |
58.2% |
||||
| Impairment related obsolete inventory charges as a % of sales |
5.9% |
0.0% |
1.5% |
0.0% |
||||
| Adjusted gross margin excluding impairment related obsolete inventory charges as a % of sales |
52.9% |
55.9% |
54.7% |
58.2% |
||||
| Impairment & related charges include the following: |
||||||||
| (in thousands) |
||||||||
| Impairment charges |
$652 |
- |
$652 |
- |
||||
| Obsolete inventory charges |
291 |
- |
291 |
- |
||||
| Total impairment & related charges |
$943 |
- |
$943 |
- |
||||
