Data I/O Reports Fourth Quarter 2022 Results

Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), which excludes equity compensation, was $831,000 in the fourth quarter of 2022, compared to Adjusted EBITDA of $117,000 in the fourth quarter of 2021. For the full year, Adjusted EBITDA was $1,265,000 in 2022, compared to $1,451,000 in 2021.

Data I/O’s balance sheet remained strong with cash at the end of the fourth quarter of 2022 of $11.5 million, up from $11.0 million at September 30, 2022 and down from $14.2 million at December 31, 2021. The increase in cash from September 30, 2022 primarily reflects operating profitability during the quarter. As is customary in the first quarter of each year, the Company expects a net use of cash for the payment of annual public company costs and satisfaction of year-end compensation. Data I/O had net working capital of $17.6 million at December 31, 2022, up from $16.5 million at September 30, 2022 and down from $18.5 million at the end of the 2021. The Company continues to have no debt.

Financial Outlook for 2023

Based on improved visibility and ongoing strength in its primary end markets, the Company is providing its financial outlook for 2023. Data I/O expects double-digit bookings growth in 2023, consistent with the long-term double-digit semiconductor growth rate in the automotive electronics industry. Gross margins are expected to be in the mid-to-high 50% range for the year. Operating expenses for 2023 are expected to be consistent with 2022, except for variability in incentive compensation, sales commissions, and currency.

Data I/O also announced today that after over 30 years with the company its Chief Operating and Financial Officer, Joel Hatlen, intends to retire in the second half of 2023. A succession plan is being implemented to ensure a smooth transition.

Conference Call Information

A conference call discussing financial results for the fourth quarter ended December 31, 2022 will follow this release today at 2 p.m. Pacific Time/5 p.m. Eastern Time. To listen to the conference call, please dial 412-317-5788. 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 3804255. 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 electronics devices. Today, our customers use Data I/O’s data programming solutions and security deployment platform to secure the global electronics supply chain and protect IoT device intellectual property from point of inception to deployment in the field. OEMs of any size can program and securely provision devices from early samples all the way to high volume production prior to shipping semiconductor devices to a manufacturing line. Data I/O enables customers to reliably, securely, and cost-effectively bring innovative new products to life. These solutions are backed by a portfolio of patents and a global network of Data I/O support and service professionals, ensuring success for our customers. See: dataio.com/Company/Patents.

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, semiconductor chip shortages, supply chain expectations, 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 Shanghai’s COVID-19 lockdowns, 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, and the Russian invasion of Ukraine including any related international trade restrictions. These factors include uncertainties as to the ability to record revenues based upon the timing of product deliveries, shipping availability, installations and acceptance, accrual of expenses, coronavirus related business interruptions, changes in economic conditions, part shortages and other risks including those described in the Company's filings on Forms 10-K and 10-Q 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.

- tables follow -

 
 
 

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,

 

 

2022

 

2021

 

2022

 

2021

 

Net Sales

$7,271

 

$6,357

 

$24,217

 

$25,835

 

Cost of goods sold

3,233

 

2,900

 

11,007

 

11,115

 

Gross margin

4,038

 

3,457

 

13,210

 

14,720

 

Operating expenses:

Research and development

1,478

 

1,626

 

6,083

 

6,635

 

Selling, general and administrative

1,933

 

2,026

 

7,876

 

8,358

 

Total operating expenses

3,411

 

3,652

 

13,959

 

14,993

 

Operating income (loss)

627

 

(195

)

(749

)

(273

)

Non-operating income (loss):

Interest income

23

 

-

 

34

 

11

 

Gain on sale of assets

(1

)

21

 

57

 

21

 

Foreign currency transaction gain (loss)

(156

)

(138

)

221

 

(202

)

Total non-operating income (loss)

(134

)

(117

)

312

 

(170

)

Income (loss) before income taxes

493

 

(312

)

(437

)

(443

)

Income tax (expense) benefit

17

 

107

 

(683

)

(112

)

Net income (loss)

$510

 

($205

)

($1,120

)

($555

)

 
 

Basic earnings (loss) per share

$0.06

 

($0.02

)

($0.13

)

($0.06

)

Diluted earnings (loss) per share

$0.06

 

($0.02

)

($0.13

)

($0.06

)

Weighted-average basic shares

8,816

 

8,621

 

8,741

 

8,545

 

Weighted-average diluted shares

8,942

 

8,621

 

8,741

 

8,545

 

 
 
 
 

DATA I/O CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(UNAUDITED)
 

 

 

December 31,

2022

 

December 31,

2021

 

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$11,510

 

$14,190

 

Trade accounts receivable, net of allowance for doubtful accounts of $147 and $89, respectively

4,992

 

3,995

 

Inventories

6,751

 

6,351

 

Other current assets

645

 

737

 

TOTAL CURRENT ASSETS

23,898

 

25,273

 

 

Property, plant and equipment – net

1,072

 

946

 

Other assets

2,195

 

2,838

 

TOTAL ASSETS

$27,165

 

$29,057

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Accounts payable

$1,366

 

$1,373

 

Accrued compensation

1,670

 

2,496

 

Deferred revenue

1,575

 

1,507

 

Other accrued liabilities

1,596

 

1,413

 

Income taxes payable

112

 

-

 

TOTAL CURRENT LIABILITIES

6,319

 

6,789

 

 

Operating lease liabilities

1,500

 

2,277

 

Long-term other payables

237

 

138

 

 

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, 8,816,381 shares as of December 31, 2022 and 8,621,007 shares as of December 31, 2021

21,897

 

20,886

 

Accumulated earnings (deficit)

(3,131

)

(2,011

)

Accumulated other comprehensive income

343

 

978

 

TOTAL STOCKHOLDERS’ EQUITY

19,109

 

19,853

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$27,165

 

$29,057

 

 
 
 
 

DATA I/O CORPORATION
NON-GAAP FINANCIAL MEASURE RECONCILIATION
 

 

 

 

Three Months Ended

December 31,

 

Twelve Months Ended

December 31,

 

 

2022

 

2021

 

2022

 

2021

(in thousands)

Net Income (loss)

$510

 

($205

)

($1,120

)

($555

)

Interest (income)

(23

)

-

 

(34

)

(11

)

Taxes

(17

)

(107

)

683

 

112

 

Depreciation and amortization

120

 

150

 

560

 

667

 

EBITDA earnings (loss)

$590

 

($162

)

$89

 

$213

 

 

Equity compensation

241

 

279

 

1,176

 

1,238

 

 

 

 

 

Adjusted EBITDA, excluding equity compensation

$831

 

$117

 

$1,265

 

$1,451

 

 
 




© 2024 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us
ShareCG™ is a trademark of Internet Business Systems, Inc.

Report a Bug Report Abuse Make a Suggestion About Privacy Policy Contact Us User Agreement Advertise