Data I/O Reports Fourth Quarter 2020 Results

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
December 31,

 

Twelve Months Ended
December 31,

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,
2020

December 31,
2019

 

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
December 31,

Twelve Months Ended
December 31,

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

-

 




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