REDMOND, WA — (Marketwired) — 10/30/14 — 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, 2014.
Net sales of $6.2 million in Q3 2014, up 16% from Q3 2013 and up 11% sequentially from Q2 2014. Quarterly sales achieved a three year high.
Net income of $646,000 in Q3 2014, compared to a net income of $146,000 in Q3 2013 and $447,000 in Q2 2014.
Adjusted EBITDA excluding equity compensation was $818,000 in Q3 2014.
Bookings of $5.4 million in Q3 2014.
PSV7000 Automated Programming System continues to lead sales growth with first multiple order customers, Asia automotive growth, and “Internet of Things” wins.
New PSV3000 Automated Programming System wins the Global SMT Award for Programming at NEPCON Shenzhen in September.
“We were very pleased to report strong profits and revenue growth in Q3, again led by the PSV7000,” said Anthony Ambrose, President and CEO. “The PSV7000 continues to win in the marketplace, with strong momentum now extending to Asia in Q3. During the quarter, we won two global automotive bookings in China in highly competitive situations. We also had repeat customers purchasing their second and third systems, respectively. These are examples of how we are gaining market share and building a strong recurring revenue base. At the cost effective entry point of our automated product line, the PSV3000 was formally launched in Asian markets during the third quarter and was also recognized with the Global SMT Award for Programming. Overall, we are seeing global strength in automotive infotainment and industrial –Internet of Things– applications, along with conversions to automated programming.”
Net sales in the third quarter of 2014 were $6.2 million up 16% compared with $5.4 million in the third quarter of 2013 and up 11% sequentially from $5.6 million in the second quarter of 2014. Net income in the third quarter of 2014 was $646,000, or $0.08 per share, compared with net income of $146,000 or $0.02 per share, in the third quarter of 2013. For the third quarter of 2014, gross margin as a percentage of sales was 54.6%, compared to 47.7% in the third quarter of 2013. Bookings in the third quarter of 2014 were $5.4 million, up 25% compared to $4.3 million in the third quarter of 2013. Backlog at September 30, 2014 was $2.0 million compared to $1.3 million at September 30, 2013. Deferred revenue at September 30, 2014 was $1.8 million compared to $1.3 million at September 30, 2013.
Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) was $728,000 in the third quarter of 2014, compared to $228,000 in the third quarter of 2013. Equity compensation expense (a non-cash item) in the third quarter of 2014 and 2013 was $90,000 and $102,000, respectively. Adjusted EBITDA excluding equity compensation was $818,000 in the third quarter of 2014, compared to $330,000 in the third quarter of 2013.
A conference call discussing the third quarter ended September 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) 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: 339917. 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 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.
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.
Statements in this news release concerning economic outlook, expected revenue, expected margins, 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. These factors include uncertainties as to the ability to record revenues based upon the timing of product deliveries, installations and acceptance, 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.
Contact:
Joel Hatlen
Vice President and Chief Financial Officer
Data I/O Corporation
6464 185th Ave. NE, Suite 101
Redmond, WA 98052
(425) 881-6444
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