Redmond, WA, Monday October 29, 2012 - Data I/O Corporation
(NASDAQ: DAIO), the leading provider of e-MMC, Flash and
Microcontroller device programming and IP management
solutions used in wireless, consumer electronics and
automotive electronics, today announced financial results
for the third quarter ended September 30, 2012.
Revenues for the third quarter of 2012 were $4.3 million,
down 39 percent compared with $7.1 million in the third
quarter of 2011. Revenues were down from the $5.4 million
in the second quarter of 2012. Net loss in the third
quarter of 2012 was ($1.3) million, or ($0.17) per share,
compared with net income of $130,000 or $0.01 per diluted
share, in the third quarter of 2011.
Orders for the third quarter of 2012 were $4.1 million,
down 42% compared with $7.1 million in the third quarter of
2011. On a regional basis, orders were down in Asia 53%,
Europe 39% and the Americas 34% compared to the third
quarter of 2011. Data I/O ended the quarter with a backlog
of $1.0 million, compared to $1.3 million at the end of the
third quarter of 2011 and $1.1 million at the end of the
second quarter of 2012.
The Company believes the decline in orders and revenue
relates primarily to a continuing trend of reduced capital
spending resulting from a downturn in Asia-based
electronics manufacturing and economic uncertainty related
to the European sovereign debt situation. On a regional
basis, revenue declined in Asia 57%, Europe 40% and the
Americas 17% compared to the third quarter of 2011.
Gross margin as a percentage of sales in the third quarter
of 2012 was 44.7%, compared with 55.9% in the third quarter
of 2011. The decrease compared to the third quarter of 2011
was primarily due to the decreased sales volume in relation
to relatively fixed production costs and an inventory
excess and obsolescence charge of $164,000.
Operating expenses decreased by $284,000 in the third
quarter of 2012 compared to the same period in 2011.
Research and Development decreased by $53,000 in the third
quarter of 2012 compared to the same period in 2011 due to
less project contractors and materials. Selling, General
and Administrative expenses costs declined $445,000
primarily attributable to lower professional fees, lower
incentive compensation, and lower sales commissions related
to sales volume. Included in the third quarter of 2012
operating expense was $214,000 of restructuring charges,
primarily related to severance. The restructuring actions
taken are expected to lower quarterly operating costs by
The Company's cash position increased slightly during the
third quarter to $11.2 million. The change in cash was
primarily attributable to decreasing accounts receivable by
$596,000 to $3 million and inventories by $567,000 to $4.1
million at September 30, 2012, offsetting the loss for the
quarter. The Company remains debt free and has 7.7 million
shares outstanding at September 30, 2012.
"As announced on October 25th, we are pleased to welcome
Anthony Ambrose to Data I/O as Fred Hume's successor,"
stated Doug Brown, Chairman of the Board of Directors. "We
are excited by the strategic skills, electronics systems
experience and operational capabilities he brings to the
Company. We want to express our thanks to Fred Hume for his
service to Data I/O."
"I am excited and honored to be joining Data
I/O," said Anthony Ambrose. "Data I/O is a worldwide
leader in device programming systems and I look forward to
applying all of my experience to grow the business."
Conference Call Information
A conference call discussing the third quarter and 2012
financial results and introducing Anthony Ambrose 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) 332-0802 passcode: DAIO. A taped 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:
267798. 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
http://www.dataio.com 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.
About Data I/O Corporation
Celebrating 40 years of expertise in delivering
intellectual property to programmable devices,
Data I/O offers complete, integrated manufacturing
solutions in wireless, automotive, programming center,
semiconductor, and industrial control market segments for
OEM, ODM, EMS and semiconductor companies. Data I/O is
the leader in programming and provides hardware and
software solutions for turn-key programming and device
testing services, as well as in-system (on-board), in-line
(right before use at the SMT line), or in-socket (off-line)
programming. These solutions are scalable for small, medium
and large volume applications with different device
mixes. Data I/O Corporation has headquarters in
Redmond, Wash., with sales and services worldwide. For
further information, visit the company's website at
Forward Looking Statement
Statements in this news release concerning expected
revenue, expected margins, expected income or loss, orders
and financial positions, cash position, share repurchases,
new products, restructure actions and 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 ability to record
revenues based upon the timing of product deliveries and
installations, 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.