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 ...

Financial Data and Key Metrics Changes - Cash decreased to $12.3 million as of March 31, 2022, down from $14.2 million at the end of the previous year and $13.6 million at the end of Q1 2021 [21] - Revenue for Q1 2022 was $5 million, a 17% decrease from $6 million in Q1 2021, primarily due to approximately $1 million in potential revenue lost from COVID-19 lockdowns in Shanghai [24][25] - Gross margin for Q1 2022 was 46.4%, down nine points from 55.5% in Q1 2021, attributed to sales volume and mix [29] Business Line Data and Key Metrics Changes - Automotive electronics accounted for approximately 63% of orders in Q1 2022, continuing to be the primary market [9][26] - Consumables increased to 33% of revenue sequentially, up from 30% in 2021 and 27% in 2020 [26] - Software and services revenues rose to 15% of revenue in Q1 2022, up from 12% in the prior year [26] Market Data and Key Metrics Changes - International sales represented approximately 94.2% of revenue in Q1 2022, compared to 95.3% in the same period last year [26] - Bookings for Q1 2022 were $6.2 million, equal to Q4 2021, and up 16% from $5.4 million in Q1 2021 [27][28] Company Strategy and Development Direction - The company is focusing on expanding sales opportunities, particularly in the $25 billion to $30 billion microcontroller industry, emphasizing security provisioning [15] - Acknowledgment of the importance of a resilient supply chain strategy, especially in light of recent geopolitical and pandemic-related challenges [52][56] - Plans to celebrate its 50th anniversary with a series of fireside chats to engage with the investment community [18] Management's Comments on Operating Environment and Future Outlook - Management adjusted short-term growth expectations due to economic challenges, with a resumption of growth contingent upon reopening in China and stabilization of supply chains [19] - Confidence in the company's industry-leading automotive presence and secure programming technology platform to capitalize on future demand [20][34] Other Important Information - The company has been awarded over 20 U.S. and international patents related to SentriX and security [16] - A significant backlog of $4.1 million as of March 31, 2022, compared to $2.9 million at the end of Q4 2021, reflecting stronger bookings and lockdown impacts [31] Q&A Session Summary Question: Has the fallout from the Russian invasion of Ukraine helped your security business? - Management noted increased awareness of cybersecurity threats, particularly for IoT devices, highlighting the need for robust security strategies [36] Question: Can you review some of the cash used in the quarter for annual expenses? - The cash change was primarily due to one-time seasonal payments, including a dividend withholding tax and planned disbursements for annual compensation [37] Question: What are the capital expenditures for the year? - Expected capital expenditures are in the range of $600,000 to $700,000, with about half allocated for sales demo systems [38] Question: How do you think about projected cash flow going forward? - Cash flow is expected to align with adjusted EBITDA, with a strong balance sheet and no debt, allowing for fluctuations based on working capital [40] Question: Can you talk about the opportunities to penetrate new markets via SentriX? - SentriX has applicability in both automotive and industrial IoT markets, with a growing customer base in industrial applications [60] Question: What skills are the new Board members bringing to the company? - New Board members bring experience in manufacturing and software, which is expected to enhance the company's strategic direction [69]

Sales Performance - Data I/O's programming solutions generated 58% of total sales in 2021, up from 56% in 2020, driven by capacity, process improvement, and technology advancements [12]. - Adapter sales accounted for 30% of total sales in 2021, increasing from 28% in 2020, reflecting capacity utilization and new customer products [14]. - Software and maintenance sales represented 12% of total sales in 2021, down from 16% in 2020, influenced by the installed base and added capabilities [14]. - Net sales for 2021 were $25,835,000, an increase of 27.3% compared to $20,328,000 in 2020 [108]. - Net sales in the U.S. for 2021 were $2.6 million, an increase from $1.5 million in 2020 [21]. - International sales represented approximately 90% of net sales in 2021, totaling $23.2 million, up from $18.8 million in 2020 [22]. - Equipment sales rose to $14,989,000 in 2021, up from $11,480,000 in 2020, marking an increase of about 30.5% [129]. - U.S. net sales increased to $2.607 million in 2021 from $1.516 million in 2020, representing a growth of 72% [164]. Financial Performance - Gross margin for 2021 was $14,720,000, representing a gross margin percentage of 57.1%, up from $10,822,000 in 2020 [108]. - Net loss for 2021 was $555,000, a significant improvement from a net loss of $3,964,000 in 2020 [108]. - Adjusted EBITDA for 2021 was $1,451,000, compared to an adjusted EBITDA of $(366,000) in 2020 [95]. - Operating income improved to a loss of $273,000 in 2021 from a loss of $3.078 million in 2020, indicating a significant reduction in losses [164]. - The total income tax expense for 2021 was $112,000, a decrease from $387,000 in 2020, reflecting improved tax management [160]. Research and Development - Research and development expenditures were $6.6 million in 2021, representing 26% of net sales [28]. - Research and development expenses for 2021 were $6,635,000, slightly higher than $6,357,000 in 2020 [108]. - The company has approximately 20 U.S. and international awarded patents related to its SentriX platform [29]. Market Trends and Demand - The company experienced a resurgence of orders in Q2 2021, attributed to increased vaccinations and customer business resumption [9]. - Demand slowed in Q3 2021 due to semiconductor supply shortages impacting customer capacity expansion plans [9]. - Data I/O's solutions target high-growth markets, particularly automotive electronics and IoT systems, which are expected to drive future sales growth [15]. - Industry analysts project strong growth in automotive electronics over the next decade, indicating a favorable market outlook for Data I/O [9]. Supply Chain and Operations - The company has maintained a resilient supply chain model, ensuring operational continuity despite COVID-19 related challenges [9]. - The company faced a slowdown in demand in Q3 2021 due to semiconductor supply chain issues, impacting production plans [141]. - The company has implemented additional supplier monitoring and increased inventory stock levels of key parts to enhance supply chain resilience [141]. Assets and Liabilities - Total current assets increased to $25,273,000 in 2021 from $23,250,000 in 2020, reflecting a growth of 8.7% [104]. - Total assets rose to $29,057,000 in 2021, up from $25,592,000 in 2020, marking an increase of 13.5% [104]. - Total stockholders' equity increased to $19,853,000 in 2021 from $19,639,000 in 2020, reflecting a growth of 1.1% [105]. - Total accrued liabilities rose to $1,413,000 in 2021, compared to $1,307,000 in 2020, marking an 8.1% increase [146]. Employee and Compensation - The company employs 95 individuals, with 46 located outside the U.S. [30]. - Share-based compensation for the year ended December 31, 2021, was $1,238,000, compared to $1,467,000 in 2020 [114]. - The Employee Stock Purchase Plan saw 4,484 shares purchased in 2021 at an average price of $5.38 per share, compared to 7,814 shares at $3.71 in 2020 [153]. Miscellaneous - The company has not experienced difficulties related to export regulations and does not require export licenses for its products [22]. - The company has a diverse Board of Directors and is committed to ESG initiatives, including a conflict mineral policy [32]. - The company did not engage in any share repurchase programs in 2021 [158]. - No impairment or impairment-related charges were recorded in 2021, contrasting with $943,000 in impairments recognized in the fourth quarter of 2020 [165].

Financial Data and Key Metrics Changes - The company reported a strong annual revenue growth of 27% in 2021, with net sales in Q4 2021 reaching $6.4 million, up 29% from $4.9 million in Q4 2020 [8][29] - Gross margin increased to 54.4% in Q4 2021 from 47% in the prior year, and for the full year, gross margin was 57% compared to 53.2% in 2020 [35][26] - The net loss for Q4 2021 was $205,000 or $0.02 per share, significantly improved from a net loss of $1.6 million or $0.20 per share in Q4 2020 [39] Business Line Data and Key Metrics Changes - The SentriX Security Provisioning Platform saw a doubling of sales in 2021, contributing to the overall revenue growth [8] - Recurring and consumable revenues represented $2.9 million or 46% of total revenues in Q4 2021, up from $2.4 million in Q4 2020 [32] - Automotive sales accounted for 58% of total sales, consistent with strong growth in the automotive electronics market [25][21] Market Data and Key Metrics Changes - International sales represented approximately 85.3% of net sales for Q4 2021, showing a slight decrease from 89.9% in 2020 [33] - The company anticipates that 6 million electric vehicles will be shipped in 2022, up from 4 million in 2021, indicating a significant growth opportunity in the EV segment [9][10] Company Strategy and Development Direction - The company aims for double-digit bookings growth in 2022, with a target of doubling SentriX bookings [24][26] - Long-term goals include achieving 50% of consolidated revenue from recurring sales, which includes software, services, and consumables [27][70] - The company is focused on enhancing marketing and support capabilities to target new customers, both directly and through channel partners [22][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying demand for automotive electronics, despite challenges from silicon shortages and geopolitical events [45][48] - The company plans to implement further price increases in response to inflation and rising costs [15][31] - Management highlighted the importance of environmental, social, and governance (ESG) issues, indicating a commitment to sustainable business practices [17] Other Important Information - The company appointed two new board members, enhancing governance and expertise in automotive and security sectors [18][19] - The company celebrated its 50th year in business in 2022, positioning itself to capitalize on high-growth trends in the industry [25] Q&A Session Summary Question: What are the order patterns seen in Q1 and confidence in bookings outlook for 2022? - Management noted a good start to Q1, with underlying demand in the automotive sector expected to improve as silicon shortages lessen [44][45] Question: Clarification on gross margin outlook for 2022? - The gross margin outlook is for the full year, with potential volatility on a quarterly basis due to sales mix and currency fluctuations [49][50] Question: Impact of supply chain issues and customer response to price increases? - Most customers understand the price increases due to similar pressures they face, and the company has proactively managed its supply chain to mitigate impacts [51][52] Question: Are there specific bottlenecks in the supply chain? - Management indicated that supply chain issues vary daily, but the company has a resilient supply chain strategy to manage these challenges [58][60] Question: Commentary on recurring revenue and bookings growth? - The long-term goal is for recurring revenue to reach 50% of consolidated revenue, with bookings growth expected to exceed 10% in 2022 [69][70] Question: Operating expenses outlook? - Operating expenses are expected to remain relatively flat, with potential increases tied to inflation and sales volume [81][82]

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 September 30, 2021 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) | --- | - ...

Data I/O Corporation (DAIO) Q3 2021 Earnings Conference Call October 29, 2021 5:00 PM ET Company Participants Jim Fanucchi - Darrow Associates, Investor Relations Anthony Ambrose - President & CEO Joel Hatlen - Vice President, COO & CFO Conference Call Participants Jaeson Schmidt - Lake Street Jeff Peterson - Austin Capital Orin Hirschman - AIGH Investment Partners Robert Anderson - Penbrook Management Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this ...

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, 2021 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) 91-0864123 (St ...

Data I/O Corporation (DAIO) Q2 2021 Earnings Conference Call July 29, 2021 5:00 PM ET Company Participants Jordan Darrow - Darrow Associates, Investor Relations Anthony Ambrose - President & Chief Executive Officer Joel Hatlen - Vice President, Chief Operating Officer & Chief Financial Officer Conference Call Participants Jaeson Schmidt - Lake Street Orin Hirschman - AIGH Investment Partners Dave Kanen - Kanen Wealth Management Operator Good afternoon and welcome to the Data I/O Corporation Second Quarter 2 ...