REDMOND, WA — (Marketwired) — 04/30/15 — 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 quarter and year ended March 31, 2015.
(on a year-over-year basis unless noted):
Net sales of $5.9 million, up 23%
Net income of $49,000, or $0.01 per diluted share compared to a net loss of $343,000, or $0.04 per share
Adjusted EBITDA excluding equity compensation was $265,000
Bookings of $5.2 million driven by continued strength in global automotive and European markets
PSV3000 wins two recent awards for excellence in device programming
PSV5000 automated programming system introduced
“We were pleased to show strong revenue growth and a profit in the 2015 first quarter as positive momentum continued from customers in the automotive and European markets,” stated Anthony Ambrose, President and CEO. “Our revenues and profitability could have been even higher, but were negatively affected by the strong U.S. dollar, which reduced the value of first quarter sales by approximately $400,000. We were able to partially offset this impact by controlling expenses, especially through engineering improvements and manufacturing efficiencies. In addition, we implemented selective price increases during the first quarter to further offset the strengthening U.S. dollar. We are working hard to manage costs and improve efficiencies. While we expect currency headwinds to remain throughout 2015, we are confident our growing product offerings and expense management will continue to position us well for long-term profitable growth.”
Net sales in the 2015 first quarter were $5.9 million, compared with $4.8 million in the 2014 first quarter. The 23% increase in first quarter sales was primarily a result of higher shipments of our PSV7000 Automated Programming System.
For the 2015 first quarter, gross margin as a percentage of sales, was 48.4%, compared to 51.8% for the 2014 first quarter. The decline in gross margin was primarily a result of the impact of foreign currency exchange rates.
Net income in the 2015 first quarter was $49,000, or $0.01 per diluted share, compared with a net loss of $343,000, or $0.04 per share, in the 2014 first quarter.
Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) was $175,000 in the 2015 first quarter, compared to a loss of $178,000 in the 2014 first quarter. Adjusted EBITDA excluding equity compensation (a non-cash item) and restructure charges was $265,000 in the 2015 first quarter, compared to a loss of $80,000 in the 2014 first quarter.
Bookings in the 2015 first quarter were $5.2 million, compared to $5.8 million in the 2014 first quarter, and $5.4 million in the 2014 fourth quarter. Backlog at March 31, 2015 was $1.7 million, compared to $1.9 million at December 31, 2014, and $2.6 million at March 31, 2014. Deferred revenue was $1.0 million at March 31, 2015, compared to $1.5 million at March 31, 2014, and $1.8 million at December 31, 2014.
Mr. Ambrose continued: “We are encouraged with how 2015 is starting. The company has the best product line in recent history, as a result of successful development of high-quality programming systems that lower customers– total cost of programming. There is a strong secular trend in automotive electronics that demands significantly more programming capacity than is currently installed. The PSV7000 continues to perform above expectations and gain market share from customers in the automotive market. We are making progress winning new business for the PSV3000 and sold multiple units in the 2015 first quarter. The PSV3000, which was designed to meet the needs of Chinese and Asian local manufacturers moving from manual to automated programming, recently won the 2015 SMT China Vision Award for Device Programming and the 2015 EM Asia Innovation Award for Programming Systems. Most recently, we announced the PSV5000, which will replace our PS388 system and offers customers up to 50% less costs per programmed part and the lowest total cost of ownership compared to competitive products. Our balance sheet at March 31, 2015 remained strong with $8.9 million of cash, no debt, and excellent liquidity. With the leading family of programming products for nearly every application, we are well positioned to gain market share by reducing our customers total cost of programming and offering unparalleled global customer service and support.”
Data I/O will be attending B. Riley & Co., LLC–s 16th Annual Investor Conference on May 12-14, 2015 at the Loews Hollywood Hotel in Hollywood, California. Anthony Ambrose Data I/O–s President and CEO will be presenting at the conference on May 12 at 9:30 am PT. The webcast of the presentation may be accessed live through the link on the Investor Relations section of Data I/O–s website or directly at . Mr. Ambrose will also be available to schedule 1 on 1 investor meetings.
A conference call discussing the financial results for the first quarter ended March 31, 2015 will follow this release today at 2:00 pm PT/5:00 pm ET. To listen to the conference call, please dial (800) 230-1766, 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 (800) 475-6701, access code: 358008. The conference call will also be simultaneously webcast 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 webcast 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 and restructure charge, 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.
–Financial Results Follow–
Joel Hatlen
Vice President and Chief Financial Officer
Data I/O Corporation
6464 185th Ave. NE, Suite 101
Redmond, WA 98052
(425) 881-6444
SM Berger & Company, Inc.
Andrew Berger
Managing Director
(216) 464-6400
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