UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ________________ Commission file number: 0-10394 DATA I/O CORPORATION (Exact name of registrant as specified in its charter) (State or oth ...

Financial Data and Key Metrics Changes - The first quarter of 2023 saw revenues of $7.2 million, a 46% increase from $5 million in Q1 2022, while remaining flat sequentially [21][84] - Gross margins improved to 59.5% in Q1 2023, up from 55.5% in Q4 2022 and 46.4% in Q1 2022, attributed to favorable currency exchange rates and product mix [81][84] - Net income for Q1 2023 was $95,000 or $0.01 per share, compared to a net income of $510,000 or $0.06 per share in Q4 2022 and a net loss of $1.8 million or $0.21 per share in Q1 2022 [22] Business Line Data and Key Metrics Changes - Automotive electronics orders accounted for 63% of Q1 2023 bookings, with capital equipment making up 56% of revenue, consumables 31%, and software and services 13% [21][84] - The company reported a strong pay-per-use revenue from the SentriX platform and established significant partnerships in Japan during Q1 [7][12] Market Data and Key Metrics Changes - International sales represented approximately 87% of total revenue in Q1 2023, indicating a strong global market presence [21] - There was observed softness in the Chinese market due to COVID recovery and upcoming automotive emissions regulations, but expectations for improvement in the second half of the year were noted [12][60] Company Strategy and Development Direction - The company is focused on long-term growth in the automotive electronics market, driven by the increasing adoption of electric vehicles and advancements in active safety systems [13][14] - The SentriX platform is positioned to benefit from new government regulations demanding better security in IoT devices, which is expected to create a long-term tailwind for the business [6][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit revenue growth in 2023, supported by a strong sales funnel and expected flat operating expenses [19][22] - The management highlighted the importance of adapting to government regulations and the need for enhanced security in product designs, which is anticipated to drive demand for their offerings [36][54] Other Important Information - The company ended Q1 2023 with $11.9 million in cash, an increase from $11.5 million at the end of 2022, reflecting improved financial health [16] - The backlog decreased to $3.2 million from $4.8 million at the end of 2022, indicating a return to more normal operational levels [87] Q&A Session Summary Question: Can you discuss the gross margins for Q1? - Management attributed the strong gross margins to good revenues, a normal operating environment, favorable currency exchange rates, and a beneficial channel mix [26][27] Question: How many of the new customer wins are in automotive versus industrial? - The majority of the 10 new customer wins were in automotive, with a split of approximately 6 to 4 or 7 to 3 [31][32] Question: What are the key factors driving excitement for the rest of the year? - Management highlighted the recovery in the automotive sector, the impact of government regulations, and the increasing demand for security in product designs as key factors [33][36] Question: How will the Cybersecurity Act impact purchasing decisions? - The management indicated that the act is prompting companies to prioritize security in new product designs, which is expected to create a long-term demand for their products [36][54] Question: What is the sales model in different regions? - The company utilizes a mix of direct sales and distribution depending on the region, optimizing their approach to meet local needs [62]

Sales Performance - In 2022, equipment sales accounted for 57% of total sales, while adapter sales were 30% and software and maintenance sales were 13%[25]. - In 2022, net sales in the U.S. were $1.8 million, a decrease from $2.6 million in 2021 and an increase from $1.5 million in 2020[33]. - International sales accounted for approximately 93% of net sales in 2022, compared to 90% in 2021 and 93% in 2020[34]. - Net international sales for 2022 were $22.4 million, down from $23.2 million in 2021 and up from $18.8 million in 2020[35]. - The backlog of pending orders was approximately $4.8 million as of December 31, 2022, compared to $2.9 million in 2021 and $3.9 million in 2020[41]. Market Conditions - The company experienced supply chain disruptions due to COVID-19, particularly with a two and a half month shutdown of operations in Shanghai, impacting shipping times and customer demand[15]. - The strengthening of the US Dollar against foreign currencies, especially the Euro and Yuan, created significant headwinds for translated consolidated revenues[15]. - The semiconductor chip shortages that began in mid-2021 continued to affect operations into 2022, leading to supply chain unreliability[15]. - The company reported that the automotive electronics market remains strong, driven by long-term forecasts for growth over the next decade[15]. Product and Technology - The SentriX security deployment system operates on a pay-per-part basis, contributing to recurring revenue streams alongside consumables and service fees[24]. - The PSV7000 Automated Programming System is particularly well-adopted in the automotive electronics sector, supporting security deployment upgrades[20]. - The LumenX programming engine is designed for high-performance programming of large NAND FLASH and microcontrollers, addressing increasing memory densities[23]. - Data I/O's solutions target high-volume markets, specifically automotive electronics and IoT systems, which are expected to grow significantly[28]. Research and Development - Research and development expenditures in 2022 were $6.1 million, representing 25% of net sales, down from 26% in 2021 and 31% in 2020[43]. - The company focuses its R&D efforts on strategic growth markets, including automotive electronics, IoT, and security deployment[42]. - The company has approximately 20 U.S. and international awarded patents related to the SentriX platform and security provisioning[44]. Workforce and Management - As of December 31, 2022, the company had a total of 95 employees, with 45 located outside the U.S.[47]. - The company experienced challenges in recruiting assembly technicians and software development engineers due to tight labor markets in 2022[48]. - Rajeev Gulati has been with Data I/O since July 2013, serving as Chief Technology Officer and Vice President of Engineering, bringing extensive experience from AMD and other tech companies[56]. - Michael Tidwell joined Data I/O in May 2019 as Vice President of Marketing and Business Development, previously holding key positions in AI and software security sectors[57]. Corporate Governance and ESG - The company has a diverse Board of Directors and is committed to ESG initiatives, including community engagement and environmental responsibility[50]. Market Risk - No quantitative or qualitative disclosures about market risk were applicable in the current report[175].

Data I/O Corporation (DAIO) Q4 2022 Earnings Conference Call February 23, 2023 5:00 PM ET Company Participants Jordan Darrow - Investor Relations Anthony Ambrose - President and Chief Executive Officer Joel Hatlen - Chief Operating Officer and Chief Financial Officer Conference Call Participants David Kanen - Kanen Wealth Management David Marsh - Singular Research Matt Winthrop - Equitable Chris Wachowski - Private Investor Operator Good afternoon and welcome to the Data I/O Fourth Quarter 2022 Financial Re ...

Bringing Devices to Life Data j2 Nasdaq: DAIO Anthony Ambrose November 2022 Safe Harbor Statements in this presentation concerning economic outlook, expected revenue, expected margins, expected savings, expected results, orders, deliveries, backlog and financial positions, semiconductor 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, uncertaint ...

Financial Performance - Net sales for Q3 2022 were $7.2 million, a 7% increase from $6.7 million in Q3 2021, driven by higher demand for equipment and adapter sales[95]. - Recurring and consumable revenues accounted for $3.2 million or 44% of total revenues in Q3 2022, up from $2.7 million or 39% in Q3 2021[95]. - International sales represented approximately 91% of total net sales in Q3 2022, compared to 86% in the prior year[96]. - Bookings in Q3 2022 were $7.1 million, an increase from $5.0 million in Q3 2021, influenced by recovery from the Covid-19 related Shanghai shutdown[97]. - Gross margin for Q3 2022 was 57.0%, down from 60.7% in Q3 2021, primarily due to the strength of the US dollar[99]. - Net income for September 30, 2022, was a loss of $1,630,000 compared to a loss of $350,000 for September 30, 2021[114]. - Adjusted EBITDA for September 30, 2022, was $435,000, down from $1,334,000 for September 30, 2021, representing a decrease of approximately 67.4%[114]. - EBITDA earnings for September 30, 2022, were a loss of $500,000, compared to earnings of $374,000 for September 30, 2021[114]. - The company reported taxes of $700,000 for September 30, 2022, compared to $219,000 for September 30, 2021, indicating a significant increase[114]. - Depreciation and amortization expenses were $441,000 for September 30, 2022, down from $516,000 for September 30, 2021[114]. Operational Challenges - The company is facing challenges due to semiconductor chip shortages, which have caused automotive plant interruptions and increased demand for consumable adapters[71]. - Future results are uncertain due to various factors, including the impact of COVID-19, geopolitical issues, and semiconductor shortages, which may affect revenue projections[65]. - The company continues to focus on research and development in strategic growth markets, including automotive electronics and IoT programming technologies, with an emphasis on secure supply chain solutions[69]. - The Shanghai facility, which was impacted by COVID-19 lockdowns, is now operational and has contributed to a resilient supply chain with dual production capabilities[72]. - The company is managing costs carefully and executing strategies for cash preservation amid ongoing inflation impacts and supply chain issues[68]. Financial Position - The company maintains a strong cash position and balance sheet, allowing for long-term investments in market expansion and new technologies[67]. - Working capital at September 30, 2022, was $16.5 million, a decrease of approximately $2.0 million from December 31, 2021[107]. - As of September 30, 2022, the unamortized future equity compensation expense is $2,371,000 with a remaining weighted average amortization period of 2.64 years[64]. Cost Management - Warranty accruals are based on expected material and labor costs, and an increase in warranty claims could adversely affect gross margins[88]. - Selling, general and administrative expenses in Q3 2022 were $2.0 million, down 11.2% from $2.2 million in Q3 2021[101]. - Research and development expenses in Q3 2022 were $1.4 million, a decrease of 17.2% from $1.7 million in Q3 2021[100]. - The company plans to manage capital expenditures carefully, focusing on internally developed products and equipment[108]. Compliance and Controls - The company evaluated its disclosure controls and procedures and concluded they were effective as of the evaluation date[117]. - There were no changes in internal controls that materially affected financial reporting during the reporting period[120]. - As of September 30, 2022, the company was not involved in any material pending legal proceedings[121]. Tax and Equity Compensation - The company is committed to maintaining tax valuation allowances due to the uncertain economic outlook and loss history, limiting the recognition of net deferred tax assets[89]. - Equity compensation increased to $935,000 for the year ending September 30, 2022, from $960,000 for the same period in 2021[114].

Data I/O Corporation (DAIO) Q3 2022 Earnings Conference Call October 27, 2022 5:00 PM ET Company Participants Jordan Darrow - Investor Relations Anthony Ambrose - President and Chief Executive Officer Joel Hatlen - Chief Operating Officer and Chief Financial Officer Conference Call Participants Brendan McCarthy - Singular Research Avi Fisher - Long Cast Advisers Operator Good afternoon, and welcome to the Data I/O Third Quarter 2022 Financial Results Conference Call. All participants will be in a listen-onl ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ________________ Commission file number: 0-10394 DATA I/O CORPORATION (Exact name of registrant as specified in its charter) Washington (St ...

Data I/O Corporation (DAIO) Q2 2022 Earnings Conference Call July 28, 2022 5:00 PM ET Company Participants Jordan Darrow - IR Anthony Ambrose - President and CEO Joel Hatlen - COO and CFO Conference Call Participants David Wright - Henry Investment Trust Operator Good afternoon and welcome to the Data I/O Second Quarter 2022 Financial Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Op ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ________________ Commission file number: 0-10394 DATA I/O CORPORATION (Exact name of registrant as specified in its charter) Washington 91 ...