Sales Performance - In 2024, equipment sales accounted for 51% of total sales, down from 58% in 2023, while adapter sales increased to 33% from 29%[27]. - Net sales in the U.S. for 2024 were $1.4 million, a decrease from $2.8 million in 2023 and $1.8 million in 2022[33]. - Total net sales decreased to $21,769 million in 2024 from $28,064 million in 2023, representing a decline of approximately 22%[191]. - Total revenue for 2024 was $21.769 million, a decrease of 22.4% from $28.064 million in 2023[224]. - Equipment sales decreased by 32.8% to $10.985 million in 2024 from $16.343 million in 2023[224]. - International sales accounted for approximately 94%, 90%, and 93% of net sales in 2024, 2023, and 2022, respectively, indicating a strong reliance on global markets[87]. Financial Results - Gross margin fell to $11,606 million in 2024, down from $16,186 million in 2023, a decrease of about 28%[191]. - Operating loss for 2024 was $3,038 million compared to an operating income of $448 million in 2023, indicating a significant downturn[191]. - Net loss for 2024 was $3,093 million, contrasting with a net income of $486 million in 2023[191]. - Total current assets decreased to $21,157 million in 2024 from $24,613 million in 2023, a reduction of approximately 14%[189]. - Total liabilities decreased to $7,344 million in 2024 from $7,882 million in 2023, a decline of about 7%[190]. - Cash and cash equivalents at the end of 2024 were $10,326 million, down from $12,341 million at the end of 2023, a decrease of approximately 16%[198]. - Total stockholders' equity decreased to $17,626 million in 2024 from $20,319 million in 2023, a decline of approximately 13%[190]. Customer and Market Dynamics - The company sold products to approximately 197 customers globally in 2024, with two customers representing 34% of net sales[30][31]. - The company has concentrated on automotive electronics customers, with orders from this segment representing 59% in 2024, 63% in 2023, and 61% in 2022, highlighting potential risks if demand decreases[68]. - Significant customers represented 34% of net sales in 2024, up from 24% in 2023[235]. Research and Development - Research and development expenditures were $6.2 million in 2024, representing 29% of net sales, compared to $6.5 million (23%) in 2023 and $6.1 million (25%) in 2022[45]. - The company is investing significantly in new product initiatives, particularly in security deployment, although market acceptance remains uncertain, which could affect expected returns on investment[64]. Operational Challenges - The company experienced lower shipments of automated systems in the Americas and Europe due to economic uncertainties, partially offset by revenue growth in Asia[17]. - The company faces challenges in adapting to new technological trends, which could impact competitiveness and financial results if timely product innovation is not achieved[66]. - The company relies on a small number of suppliers for key components, which may lead to shortages and adversely affect business operations[81]. - Fluctuations in quarterly operating results are expected, with revenue heavily dependent on orders received within each quarter, potentially leading to financial instability[91]. Management and Governance - The new CEO, William Wentworth, was appointed in the fourth quarter of 2024 following the retirement of Anthony Ambrose[18]. - The company is committed to environmental, social, and governance (ESG) responsibilities, including purchasing sustainable electric power and reducing carbon emissions[50][52]. - The company must navigate compliance with various international regulations, including CE certification and RoHS directives, to maintain market access in Europe[88]. Risks and Uncertainties - The company is exposed to geopolitical risks, including trade tensions and conflicts, which could disrupt supply chains and impact financial performance[63]. - Cybersecurity risks could lead to liabilities and costs, as well as damage to data or customer access to information systems[103]. - The company has incurred operating losses in five of the last ten years and may struggle to generate sufficient revenue to achieve profitability[96]. - The company may need to raise additional capital due to past and future revenues being insufficient to support operational expenses and business expansion[98]. Employee and Workforce - As of December 31, 2024, the company had a total of 95 employees, with 45 located outside the U.S., and emphasizes competitive pay and benefits to attract and retain skilled employees[49]. - The loss of key employees could adversely affect operations, as many employees are highly skilled and in great demand within the industry[97].

Data I/O to Demonstrate New Unified Programming Platform Strategy at the Upcoming IPC APEX ExpoNewly refreshed manual programmers engineered to seamlessly support design through production and beyond on a single platformMarch 17, 2025 9:00 AM EDT | Source: Data I/O Corp.Redmond, Washington--(Newsfile Corp. - March 17, 2025) - Data I/O Corporation (NASDAQ: DAIO), the leading global provider of advanced security and data deployment solutions for microcontrollers, security ICs and memory devices, ...

Financial Performance - Net sales for Q4 2024 were $5.2 million, a decrease of 25% compared to $6.9 million in Q4 2023[15]. - For the full year 2024, net sales totaled $21.8 million, down 22% from $28.1 million in 2023[15]. - Q4 2024 bookings were $4.1 million, down 42% from $7.2 million in Q4 2023, while total bookings for 2024 were $22.5 million, a 13% decline from $25.8 million in 2023[16]. - The net loss for Q4 2024 was ($1.2) million or ($0.13) per share, compared to net income of $144,000 or $0.02 per share in Q4 2023[19]. - Net income for the twelve months ended December 31, 2024, was a loss of $3,093 thousand, compared to a profit of $486 thousand in 2023[33]. - Adjusted EBITDA for Q4 2024 was ($1.1) million, compared to $514,000 in the prior year period, with full year Adjusted EBITDA at ($1.4) million in 2024, down from $2.3 million in 2023[20]. - Adjusted EBITDA, excluding equity compensation, fell from $2,288 thousand in 2023 to a loss of $1,439 thousand in 2024[33]. - EBITDA earnings for the three months ended December 31, 2024, were a loss of $1,124 thousand, compared to earnings of $253 thousand in the same period of 2023[33]. Margins and Expenses - Gross margin for Q4 2024 was 52.2%, down from 58.0% in the prior year, with full year gross margin at 53.3%, compared to 57.7% in 2023[17]. - Operating expenses for Q4 2024 were $4.0 million, up 5% from the prior year, including approximately $500,000 in one-time charges related to organizational changes[18]. Cash and Assets - Cash at the end of Q4 2024 was $10.3 million, a decrease of $2 million from $12.3 million on December 31, 2023[21]. - Total current assets decreased from $24,613 million in 2023 to $21,157 million in 2024, a decline of approximately 13.5%[31]. - Cash and cash equivalents decreased from $12,341 million in 2023 to $10,326 million in 2024, a decline of 16.3%[31]. - Trade accounts receivable decreased from $5,707 million in 2023 to $3,960 million in 2024, a decline of approximately 30.6%[31]. - Inventories increased from $5,875 million in 2023 to $6,212 million in 2024, an increase of about 5.7%[31]. Liabilities and Equity - Total liabilities decreased from $27,401 million in 2023 to $24,970 million in 2024, a reduction of about 9.9%[31]. - Total stockholders' equity decreased from $20,319 million in 2023 to $17,626 million in 2024, a decrease of approximately 13.3%[31]. - Accumulated earnings (deficit) worsened from a deficit of $2,645 thousand in 2023 to a deficit of $5,738 thousand in 2024[31]. Market Dynamics - Automotive electronics represented 59% of 2024 bookings, down from 63% in 2023, indicating a shift in market dynamics[15]. - The company continues to focus on optimizing its core programming platform and enhancing its sales process to drive profitability and market share[9].

Financial Data and Key Metrics Changes - Fourth quarter revenue was $5.2 million, down 25% from the prior period, and full year sales were $21.8 million, down 22% from $28.1 million in 2023 [28][35] - Gross margin for the fourth quarter was 52% and for the full year was 53%, down from 58% in 2023, primarily due to lower sales volume [31] - The company incurred a net loss of $1.2 million for the fourth quarter and $3.1 million for the full year, compared to a net profit of $144,000 in the fourth quarter and $486,000 for the full year 2023 [35] Business Line Data and Key Metrics Changes - Automotive electronics represented 59% of 2024 bookings, down from 63% in 2023, with significant declines in the Americas and European markets [29] - Asia revenue grew by 14% for the year, contrasting with the declines in other regions [30] Market Data and Key Metrics Changes - Order backlog remained strong at $3.5 million as of December 31, up $700,000 from the start of the year [30] - The company reported a decrease in operating expenses for the full year, down $1.1 million or 7% from the prior year [34] Company Strategy and Development Direction - The company is focusing on building out its algorithm library, which is crucial for customer support and market share growth [19] - A consultative sales approach has been implemented, reducing the sales cycle from over 140 days to 70 days in early 2024 [13][14] - The company aims to return to profitability and accelerate top-line growth by expanding into new markets and enhancing operational efficiencies [25][40] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of automotive market headwinds and political changes on growth perspectives, emphasizing the need to diversify beyond the automotive sector [53][54] - There is optimism regarding Q1 performance, with bookings expected to improve compared to Q4 [60][106] Other Important Information - The company maintains a healthy cash position with no debt, ending the year with $10.3 million in cash [38][40] - The company is actively managing tariff impacts and exploring ways to mitigate costs associated with international trade [71][72] Q&A Session Summary Question: Clarification on nonrecurring expenses - Gerald Ng confirmed that the one-time expenses in Q4 should not recur in 2025, and the company will continue to drive efficiencies [48] Question: Sales funnel and expectations for the year - Bill Wentworth discussed the impact of the political environment and the automotive industry slowdown, but noted that Q1 bookings are strengthening [53][60] Question: Tariff impact on manufacturing - Gerald Ng explained the company's international footprint helps mitigate tariff impacts, and they are actively managing material costs [70][72] Question: Success of electric vehicles in Asia - Bill Wentworth indicated that while electrification contributes to demand, traditional combustion engine vehicles still drive significant technology content [82] Question: Future revenue expectations - Gerald Ng stated that while they do not provide forward-looking guidance, the goal is to improve revenue and leverage a strong backlog [92][93] Question: Adapter sales and customer engagement - Bill Wentworth highlighted a 20% increase in adapter activity early in the year, indicating positive engagement with service providers [113] Question: End markets for service providers - Bill Wentworth noted that service providers support a diverse range of vertical markets beyond automotive, including consumer electronics and IoT [135]

Financial Performance - Third quarter revenue was $5.4 million, down 17% from $6.6 million in the prior year period[54] - Net sales in Q3 2024 were $5.4 million, down 17% from $6.6 million in Q3 2023, primarily due to increased uncertainty in automotive electronics and slowed customer capacity expansion[77] - Total programming systems revenue for the third quarter was $5.4 million, a decrease of 17.3% compared to the previous year[76] - The company reported a net loss of $307,000 in Q3 2024, compared to a loss of $53,000 in Q3 2023[92] Revenue Breakdown - Automotive market system sales were below expectations, while consumables, software, and services grew 6%, representing 50% of year-to-date revenue[55] - Automated programming systems revenue was $4.0 million, down 23.8% year-over-year, while non-automated programming systems revenue increased by 9%[76] - Recurring services and consumable adapter sales increased by 6% year-over-year, while system sales declined by 34% in the same period[78] - The Asia channel grew 29% in the third quarter and 26% year-to-date, offsetting declines in the Americas and Europe[54] Expenses and Cost Management - Operating expenses for the third quarter were $3.2 million, a decrease of $334,000 or 9% year-over-year[56] - Research and development expenses decreased by 2.1% in Q3 2024 to $1.5 million compared to $1.6 million in Q3 2023, reflecting lower consulting costs[80] - Selling, general and administrative expenses decreased by 15% in Q3 2024 to $1.7 million, primarily due to lower sales commissions and efficiency improvements[81] - The company is focusing on managing costs to mitigate revenue shortfalls and fund future growth initiatives[56] Cash and Working Capital - The company expects continued near-term market headwinds but remains financially solid with a strong cash position and no debt[57] - Working capital decreased by $811,000 to $17.6 million as of September 30, 2024, due to lower revenue and higher inventories[85] - Interest income increased by 73.2% in Q3 2024 to $71,000 compared to $41,000 in Q3 2023, driven by higher average interest rates[82] Corporate Changes and Governance - A CEO transition occurred with William "Bill" Wentworth becoming CEO effective October 1, 2024, replacing Anthony Ambrose[58] - No changes were made in internal controls that materially affected financial reporting[95] - As of September 30, 2024, the company was not a party to any material pending legal proceedings[96] Tax and Valuation - The effective tax rate was affected by a valuation allowance of $9.3 million as of September 30, 2024, limiting the recognition of net deferred tax assets[83] - The company has no significant capital expenditure plans but will continue to manage expenditures to support business development[86]

Financial Performance - Net sales for Q3 2024 were $5.4 million, a decrease of 17% compared to $6.6 million in Q3 2023[7] - Recurring services and consumable adapter sales increased by 6% year-over-year, while system sales declined by 34%[7] - Net loss for Q3 2024 was ($307,000), or ($0.03) per share, compared to a net loss of ($53,000), or ($0.01) per share in Q3 2023[9] - Adjusted EBITDA for Q3 2024 was $37,000, down from $402,000 in Q3 2023[9] - Net income for the three months ended September 30, 2024, was a loss of $307 thousand compared to a loss of $53 thousand in the same period of 2023[18] - Adjusted EBITDA, excluding equity compensation, was $37 thousand for the three months ended September 30, 2024, down from $402 thousand in the same period of 2023[18] Expenses and Margins - Gross margin as a percentage of sales was 53.9% in Q3 2024, slightly up from 53.7% in the prior year[8] - Operating expenses decreased by 9% year-over-year to $3.2 million, with contributions from all operational areas[9] Cash and Assets - Cash at the end of Q3 2024 was $12.4 million, up from $11.4 million on June 30, 2024[10] - Total current assets decreased from $24,613 thousand as of December 31, 2023, to $22,160 thousand as of September 30, 2024, a decline of approximately 10%[17] - Trade accounts receivable decreased significantly from $5,707 thousand to $2,607 thousand, representing a reduction of about 54%[17] - Total assets decreased from $27,401 thousand to $24,843 thousand, a decline of approximately 9%[17] - Total current liabilities decreased from $6,188 thousand to $4,546 thousand, a reduction of about 26%[17] - The company continues to have no debt, maintaining a strong balance sheet with net working capital of $17.6 million[10] Equity and Earnings - Accumulated earnings (deficit) worsened from ($2,645) thousand to ($4,556) thousand, indicating a deeper loss[17] - Total stockholders' equity decreased from $20,319 thousand to $19,189 thousand, a reduction of about 6%[17] - Equity compensation increased slightly from $300 thousand to $304 thousand for the three months ended September 30, 2024[18] Strategic Direction - The company aims to diversify its market approach beyond automotive electronics to strengthen its position in other sectors[7] Backlog and Inventory - Backlog as of September 30, 2024, was $4.7 million, down $0.7 million from the start of the quarter[8] Property and Equipment - Property, plant, and equipment decreased from $1,359 thousand to $928 thousand, a decline of approximately 32%[17]

Financial Data and Key Metrics Changes - Third quarter revenue was $5.4 million, down 17% from $6.6 million in the prior year period [11] - Year-to-date operating expenses decreased by more than $1 million, or 11% from last year [8] - Cash balance at the end of Q3 was $12.4 million, up $1 million from $11.4 million at the end of Q2 [10] - The company incurred a net loss of $307,000 for Q3, an improvement from a net loss of $797,000 in Q2 [14] Business Line Data and Key Metrics Changes - Automotive Electronics revenue was below expectations due to increased uncertainty and slowed customer capacity expansion [11] - Asia channel grew 29% in Q3 and 26% year-to-date, offsetting declines in other regions [11] - Consumables, software, and services grew 6% in Q3, representing 50% of total year-to-date revenue [11] Market Data and Key Metrics Changes - Backlog remained strong at $4.7 million as of September 30, down only $700,000 from the start of the quarter [12] - Days sales outstanding (DSO) improved to 43 days compared to 55 days at the end of Q2 [10] Company Strategy and Development Direction - The company intends to diversify revenue streams and enhance customer experience by collaborating with customers and suppliers [7] - Focus on expanding into new markets and engaging with electronic supply chain component suppliers [8] - Plans to optimize existing products and explore new business models to drive higher margins [7][25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged current market headwinds in the automotive sector but expressed optimism for recovery in the coming year [16] - The company remains focused on providing product innovation and quality despite challenges [14] - Future growth strategies will include both organic and inorganic opportunities [24] Other Important Information - The company has no debt and maintains a healthy balance sheet [10] - Upcoming events include the NASDAQ Closing Bell Ringing ceremony and the LD Micro Main Event Conference [15] Q&A Session Summary Question: Activity pace in the automotive sector - Management noted a choppy market with expectations for some recovery in the next year, driven by new models and production increases [16] Question: Opportunities in new markets - Management highlighted potential partnerships with global component distribution companies and EMS contract manufacturers to diversify customer base [18] Question: Executive compensation concerns - Management explained that executive compensation is reviewed by the Board and tied to company performance, ensuring alignment with shareholder interests [21] Question: Transition to a growth strategy - Management discussed short-term initiatives focused on current products and longer-term opportunities for product optimization and market expansion [24][25]

Revenue Performance - Second quarter revenue was $5.1 million, down 32% from $7.4 million in the prior year period[43] - Total programming systems revenue was $5.1 million, a decline of 31.6% from $7.4 million in the prior year[59] - Net sales for Q2 2024 were $5.1 million, a decrease of 31.6% compared to $7.4 million in Q2 2023, primarily due to backlog conversion timing and lower bookings in the Americas[60] - Equipment sales dropped by 48.4% year-over-year to $2.4 million, while total net sales for the first half of 2024 were $11.2 million, down 23.7% from $14.6 million in the same period last year[60] Bookings and Backlog - Bookings for the first half of 2024 were $13.7 million, slightly up from $13.3 million in the prior year[43] - The backlog increased by $2.6 million from the beginning of the year to $5.4 million as of June 30, 2024[43] - Backlog increased to approximately $5.4 million as of June 30, 2024, up from $2.8 million at the beginning of the year[61] Gross Margin and Expenses - Gross margin as a percentage of sales increased by 170 basis points from the first quarter of 2024[44] - Gross margin as a percentage of net sales decreased to 54.5% in Q2 2024 from 59.1% in Q2 2023, reflecting lower sales volume and product mix[62] - Operating expenses were reduced by 21% from the prior year period and 19% from the first quarter of 2024[44] - Research and development expenses in Q2 2024 were $1.4 million, down 17.8% from $1.7 million in Q2 2023, representing 27.9% of net sales[63] - Selling, general and administrative expenses decreased by 23.3% to $1.9 million in Q2 2024, accounting for 37.7% of net sales[64] International Sales - International sales accounted for 88.4% of total net sales in the second quarter[58] - International sales accounted for approximately 88% of total net sales in Q2 2024, up from 86% in Q2 2023[61] Financial Position - Cash and cash equivalents decreased to $11.4 million as of June 30, 2024, down $901,000 from December 31, 2023[67] - The company reported an EBITDA loss of approximately $379,000 in Q2 2024, compared to a gain of $490,000 in Q2 2023[72] Tax and Legal Matters - The effective tax rate was impacted by a valuation allowance of $9.3 million as of June 30, 2024, reflecting uncertainty in recognizing deferred tax assets[67] - As of June 30, 2024, the company was not a party to any material pending legal proceedings[76] Internal Controls and Procedures - The company evaluated the effectiveness of its disclosure controls and procedures, concluding they were effective at a reasonable level of assurance as of the evaluation date[73] - There were no changes in the company's internal controls during the reporting period that materially affected financial reporting[74] Strategic Focus - The company remains focused on growth in the automotive, industrial, and programming center markets while maintaining disciplined spending[44]

Financial Performance - Net sales for Q2 2024 were $5.1 million, a decrease of 32% compared to $7.4 million in Q2 2023[16] - Total bookings in Q2 2024 were $5.6 million, down from $7.6 million in the prior year, with first half bookings of $13.7 million slightly increasing from $13.3 million year-over-year[12][16] - The net loss for Q2 2024 was ($797,000), or ($0.09) per share, compared to net income of $300,000, or $0.03 per share, in Q2 2023[19] - Adjusted EBITDA, excluding equity compensation, was $3 thousand for the three months ended June 30, 2024, down from $870 thousand in the same period of 2023[33] - EBITDA earnings for the six months ended June 30, 2024, were a loss of $1,024 thousand, compared to earnings of $743 thousand for the same period in 2023[33] Cost and Expense Management - Gross margin as a percentage of sales was 54.5% in Q2 2024, down from 59.1% in the prior year, primarily due to lower sales volume and product mix[17] - Operating expenses in Q2 2024 were $3.3 million, a reduction of 21% from the prior year and 19% from Q1 2024[18] - Significant improvements in direct product costs and operating expense reductions are expected to aid in achieving profitability goals in the near and long term[15] Cash and Liquidity - Cash and equivalents at the end of Q2 2024 were $11.4 million, down from $12.3 million at the end of 2023, with no debt reported[20] - The company repatriated $3.4 million of cash from its China subsidiary, incurring a dividend withholding tax of $337,000[13][15] - Cash and cash equivalents decreased from $12,341 million to $11,440 million, a decline of about 7.3%[31] Balance Sheet and Assets - Total assets decreased from $27,401 million as of December 31, 2023, to $24,087 million as of June 30, 2024, representing a decline of approximately 12.5%[31] - Current liabilities decreased from $6,188 million as of December 31, 2023, to $4,494 million as of June 30, 2024, a reduction of approximately 27.4%[31] - Total stockholders' equity decreased from $20,319 million to $18,918 million, a decline of about 6.9%[31] - Accumulated earnings (deficit) worsened from a deficit of $2,645 million to a deficit of $4,249 million[31] Inventory and Backlog - Backlog at the end of Q2 2024 was $5.4 million, an increase from $4.5 million at the end of Q1 2024[12][16] - Inventories increased from $5,875 million to $6,741 million, reflecting an increase of approximately 14.7%[31] Customer Acquisition - The company achieved 8 new customer wins in Q2 2024, totaling 13 for the year[12]

Financial Data and Key Metrics Changes - The company reported a second quarter revenue of $5.1 million, down 32% from $7.4 million in the prior year, primarily due to sluggishness in the Americas region and delays in backlog conversion to shipments [10][45] - Gross margins for Q2 were at 55%, a decrease of 3 percentage points from the previous year, but improved by 2 percentage points from Q1 2024 due to better product mix and cost control efforts [11] - The company incurred a net loss of $797,000 for Q2 compared to a net income of $300,000 in the same period last year, largely attributed to lower revenue and a foreign tax expense related to cash repatriated from China [45] Business Line Data and Key Metrics Changes - Bookings for the first half of the year reached $13.7 million, slightly up from $13.3 million in the prior year, with strong opportunity conversion in Asia and Europe [4][10] - Consumables, software, and services accounted for 49% of total year-to-date revenue, helping to offset the current softness in capital expenditure systems in the Americas [29] Market Data and Key Metrics Changes - The company experienced strength in programming centers, industrial IoT, and EMS markets, while the automotive sector showed weakness, particularly in North America [22] - The Americas region has seen a significant decline in demand, contrasting with strong performance in Asia and EMEA sales regions [3][25] Company Strategy and Development Direction - The company is focusing on long-term structural efficiency improvements, including deploying AI and machine learning capabilities to enhance process efficiencies and reduce costs [5] - Despite current automotive market headwinds, the company maintains a strong backlog and is prepared to fulfill orders in the second half of 2024, leveraging improved cost management [27][26] Management's Comments on Operating Environment and Future Outlook - Management noted that the softness in automotive demand is viewed as an inventory correction and a shift in product mix from electric vehicles to hybrids and internal combustion engines [6] - The company remains optimistic about the long-term growth in electronics content in vehicles and is prepared to respond quickly once demand returns [7][26] Other Important Information - Cash position remained steady at $11.4 million as of June 30, down slightly from $12 million at the end of Q1, benefiting from strong customer collections and lower operating expenses [9] - The company has no debt and continues to manage its balance sheet effectively, with accounts receivable at $3.3 million and inventory at $6.7 million [28] Q&A Session Summary Question: What is the potential for gross margins to improve with increased revenues? - Management indicated that with a normal mix, gross margins could potentially reach the high 50s or even 60% with significant volume increases [32] Question: What is the variable expense on the next million dollars of revenue? - Management discussed that variable expenses would depend on the sales mix, with direct sales incurring higher expenses compared to distribution [33][49] Question: Can you provide insights on the global landscape, particularly in China and India? - Management confirmed that Asia, particularly China, has shown promising opportunities, while the Americas have faced significant declines in demand [36][37] Question: What gives confidence that backlog orders will not be canceled? - Management noted that historically, customers do not cancel orders once placed, although they have the right to do so until shipment [62] Question: Are there any incremental expense reductions expected in the second half of the year? - Management indicated that while some efficiencies have been achieved, there may be smaller incremental improvements moving forward [50] Question: How is AI impacting the business? - Management highlighted that AI, particularly in Edge AI applications, is expected to drive demand and increase code size, benefiting the company [51][52]