Data I/O Provides Update on Operations Amid COVID-19 Outbreaks in China
March 29 2022 - 4:05PM
Business Wire
Data I/O Corporation (NASDAQ: DAIO), the leading global provider
of advanced data and security deployment solutions for flash,
flash-memory based intelligent devices and microcontrollers, today
provided an update on operations relating to the Russia invasion of
Ukraine and the recent COVID-19 (or “coronavirus”) outbreaks in
China. The commentary that follows is attributable to Anthony
Ambrose, President and CEO of Data I/O Corporation.
“The Company operates in China through a wholly owned
subsidiary, with manufacturing, administration, service and sales
operations located in the city of Shanghai.
“According to published reports, outbreaks of the Omicron
variant of COVID-19 in China led to a record-breaking level of new
local COVID-19 cases that have so far this year exceeded the cases
recorded in 2021. In recent weeks, new COVID cases have been
reported in Beijing and Shanghai, as well as in the provinces of
Guangdong, Jiangsu, Shandong and Zhejiang. In response, the
Shanghai government announced further restrictions on operations
that are expected to shut down our facility from March 29 through
April 5. With the prior COVID restrictions and now the shutdown,
revenue shipments of approximately $1 million are held up and
delayed until the second quarter. Most of our Shanghai employees
are working remotely providing technical support to our
customers.
“Our operations in China have remained open since the onset of
the COVID-19 pandemic approximately 2 years ago. We maintain remote
working procedures for non-manufacturing and non-factory floor
personnel in China. This does not, however, remove our
responsibilities from operating safe workplaces, protecting our
team members and communities, and abiding by local regulations. As
such, some of our team members in China have been unable to report
to work due to quarantine and travel restrictions. In addition,
some key customers and supply chain partners are experiencing
similar workplace challenges and are unable to deliver parts and
equipment to us or accept our products that have been manufactured.
The primary issue we are presently encountering in China is the
quarantining and temporary closure or lockdowns of certain
technology zones where our customers are located, as well as
logistics issues due to freight forwarders’ inability to pick up
systems. This will in turn impact our revenue recognition,
inventory and other financial performance measures. We have not
received any requests to cancel orders to date and expect to
deliver finished systems and other products as soon as the
limitations are lifted. If required, we can move production to our
Redmond facility; but we do not anticipate this will be required
for these shipments.
“Due to the invasion of Ukraine, economic and trade restrictions
have been imposed against Russia. Data I/O has no operations in
Ukraine or Russia, and we remain in compliance with all relevant
international trade regulations.”
Financial results for the first quarter ended March 31, 2022 are
scheduled to be reported on April 28, 2022, with a conference call
to be conducted on that day. Conference call details will be
announced on or about April 14, 2022.
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
Statements in this news release concerning economic outlook,
expected revenue, expected margins, expected savings, expected
results, orders, deliveries, backlog and financial positions,
silicon 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 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, 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220329005948/en/
Joel Hatlen Chief Operating and Financial Officer Data I/O
Corporation 6645 185th Ave. NE, Suite 100 Redmond, WA 98052
Darrow Associates, Inc. Jordan Darrow (512) 551-9296
jdarrow@darrowir.com
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