|
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
|
|
Washington,
D.C. 20549
|
|
|
|
CURRENT
REPORT
|
|
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
|
|
|
Date
of Report
(Date of earliest event
reported)
: August 1, 2019
|
|
Data
I/O Corporation
|
|
(Exact
name of registrant as specified in its charter)
|
|
|
|
Washington
|
0-10394
|
91-0864123
|
|
|
|
(State
or other jurisdiction of incorporation)
|
(Commission
File Number)
|
(IRS
Employer Identification No.)
|
|
|
|
6645
185th Ave. N.E., Suite 100, Redmond, WA 98052
|
|
(Address
of principal executive offices, including zip code)
|
|
|
|
(425)
881-6444
|
|
(Registrant’s
telephone number, including area code)
|
|
|
|
Not
Applicable
|
|
(Former
name or former address, if changed since last report)
|
Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions:
□
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
□ Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
□
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
□
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
|
Securities registered pursuant to
Section 12(b) of the Act:
|
|
|
|
Title
of each class
|
Trading
Symbol(s)
|
Name
of each exchange on which registered
|
|
Common
Stock
|
DAIO
|
NASDAQ
|
|
|
Indicate by check mark whether the
registrant is an emerging growth company as defined in Rule 405 of the
Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the
Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company □
If an emerging growth company, indicate
by check mark if the registrant has elected not to use the extended transition
period for complying with any new or revised financial accounting standards
provided pursuant to Section 13(a) of the Exchange Act □
EXHIBIT INDEX
|
Exhibit No.
|
Description
|
|
|
Press Release: Data I/O Reports Second Quarter 2019 Results
|
|
Joel Hatlen
|
Darrow
Associates, Inc.
|
|
Chief
Operating and Financial Officer
|
Jordan
Darrow
|
|
Data
I/O Corporation
6645
185
th
Ave. NE, Suite 100
|
(512)
551-9296
jdarrow@darrowir.com
|
|
Redmond,
WA 98052
|
|
|
(425)
881-6444
|
|
Data
I/O Reports Second Quarter 2019 Results
Redmond, WA,
Thursday – August 1, 2019 --
Data I/O
Corporation (NASDAQ: DAIO), the leading global provider of advanced data and
security programming solutions for flash, flash-memory based intelligent
devices and microcontrollers, today announced financial results for the second
quarter ended June 30, 2019.
Second Quarter 2019 Highlights
·
Net sales of $5.8 million; bookings of $5.1 million
·
Gross margin as a percentage of sales of over 61%
·
Net income of $127,000 or $0.02 diluted earnings per share
·
Adjusted earnings before interest, taxes, depreciation and
amortization (EBITDA)*, excluding equity compensation, of $728,000
·
Cash & Equivalents of $15.2 million; no debt
·
Repurchased 188,000 shares as part of a $2 million buyback
program authorized in October 2018
·
Automotive electronics, advanced programming and secure
provisioning leadership
o
Automotive represented 56% of bookings year to date through 2Q19
o
Appointed Michael Tidwell as Vice President of Marketing and
Business Development
o
Added Assembly Products LLC to expand sales in New York/New
England region of USA
o
Embedded
Technologies Conference speaking engagements included Managed & Secure
Programming for the Automotive World
o
Announced
support for NXP SE050 Secure Element; the fourth NXP product supported by the
SentriX®™ platform
*Adjusted EBITDA is a non-GAAP
financial measure. A reconciliation is provided in the tables of this press
release.
Management
Comments
Commenting on the
second quarter ended June 30, 2019, Anthony
Ambrose, President and CEO of Data I/O
Corporation, said, “The global market for programming capital equipment in the
second quarter remained in the down cycle that began last year. Automotive
sales declines, semiconductor cyclicality and global supply chain uncertainty
are headwinds to the deployment of capital right now, and we are adjusting our
planned 2019 spending and targets accordingly. Similar to the first quarter of
this year, our performance in the second quarter reflects our disciplined and
effective management practices. Margin strength and expense controls led to improved
earnings on lower revenue as compared to the first quarter. As we invest and
plan for the next upward cycle, we took the opportunity to return cash to
shareholders through the continuation of our stock buyback.
“The long-term catalysts for our business continue to be the secular
growth of electronic content in automobiles and IoT devices, and the increasing
need to secure these platforms. We
continued to invest in market development and R&D in the second quarter at
a robust level even as discretionary and variable expenses declined compared to
the first quarter and the prior year period.
“The investments we
have been making include our SentriX platform for IoT security. Revenue
adoption remains lower than we originally planned due to the longer time
required for security provisioning to be designed into OEM production models. Despite
the longer adoption cycle, we remain bullish on the market opportunity and our
position in this emerging market. The 5th SentriX system was brought online
in Europe in the second quarter.”
Financial Results
Net sales in the second
quarter of 2019 were $5.8 million, as compared with $7.2 million in the second
quarter of 2018. The year-over-year decline in sales was a result of a
cyclical downtrend in the industry that began at the end of 2017.
For the 2019 second quarter,
gross margin as a percentage of sales was 61.4%, as compared to 59.0% in the second
quarter of 2018. The second quarter 2019
level exceeded the higher end of the Company’s anticipated 2019 target due to a
favorable product mix and variances, primarily labor and overhead as well as
foreign currency effects.
Total operating
expenses in the second quarter of 2019 were $3.5 million, down from $4.0
million in the 2018 period. Spending declined across the board with the most
significant reductions due to lower variable incentive compensation accrual and
stock compensation. Data I/O continues to support its industry leading platform
of programming and provision solutions while emphasizing ongoing expense
management practices.
Operating income was
$75,000 for the second quarter of 2019, down from $246,000 for the second
quarter of 2018. Net income in the second quarter of 2019 was $127,000, or $0.02
per diluted share, compared with net income of $486,000, or $0.06 per diluted
share, in the second quarter of 2018. Included in net income is foreign
currency transaction gains of $69,000 for the second quarter of 2019 and
$269,000 for the same period of the prior year.
Earnings
Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) was $364,000 in
the second quarter of 2019, compared to $796,000 in the second quarter of 2018.
Adjusted EBITDA, excluding equity compensation, was $728,000 in the second quarter
of 2019, compared to $1.3 million in the second quarter of 2018.
Bookings in the second
quarter of 2019 were $5.1 million, compared to $7.2 million in the second quarter
of 2018 and $6.2 million in the first quarter of 2019. Backlog at June 30,
2019 was $1.4 million, as compared with $2.0 million at March 31, 2019.
Data I/O’s financial condition remains strong with cash of $15.2
million at June 30, 2019, up from $14.8 million at March 31, 2019. During the
second quarter, approximately $908,000 was used to buyback common stock. The
Company had net working capital of $19.5 million at June 30, 2019, down from
$20.4 million at March 31, 2019, which reflects the cash spent on the share
repurchase. The Company continues to have no debt.
Conference
Call Information
A
conference call discussing the second quarter ended June 30, 2019, 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 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 10133624. 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 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 markets. 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,
assuring 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. 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.
-
tables follow -