Data I/O Corporation (DAIO) Q1 2020 Earnings Conference Call April 30, 2020 5:00 PM ET Company Participants Jordan Darrow - Investor Relations Anthony Ambrose - President & Chief Executive Officer Joel Hatlen - Chief Operating Officer & Chief Financial Officer Conference Call Participants Jaeson Schmidt - Lake Street George Melas - MKH Management Mark Spiegel - Stanphyl Capital Avi Fisher - Long Cast Advisers Operator And welcome to the Data I/O Corporation First Quarter 2020 Financial Results Conference C ...

Market Focus - Data I/O Corporation's programming solutions target high-growth areas, particularly automotive electronics and IoT systems, with a focus on security deployment and IP protection[11]. - The company is focusing on strategic growth markets including automotive electronics, IoT, and security deployment, with plans to expand hiring and R&D related to the SentriX platform in 2020[45]. - Growth drivers for automotive electronics include increasing microcontroller density and the demand for advanced features in vehicles[31]. Sales Performance - In 2019, equipment sales accounted for 58% of total sales, down from 65% in 2018, while software and maintenance sales increased to 16% from 11%[23]. - U.S. net sales for 2019 were $1.7 million, a decrease from $3.4 million in 2018 and $2.9 million in 2017[34]. - International sales accounted for approximately 92% of net sales in 2019, with net international sales of $19.8 million, down from $25.8 million in 2018 and $31.2 million in 2017[36][37]. - In 2019, one customer, Data Copy Limited, accounted for approximately 11% of net sales, while Bosch and Data Copy represented 16% and 13% of net sales in 2018[32]. - The backlog of pending orders was approximately $2.9 million as of December 31, 2019, compared to $1.9 million in 2018 and $4.0 million in 2017[44]. Product Offerings - The PSV family of automated programming systems includes the PSV2800, PSV7000, PSV5000, and PSV3000, with prices ranging from $75,000 to $550,000[19]. - The SentriX security deployment system operates on a pay-per-part basis, contributing to recurring revenue through consumables and service fees[21]. - The company’s automated programming systems integrate data programming and security deployment, addressing the increasing complexity and security needs of modern electronic devices[15]. - The SentriX system allows secure provisioning of keys and certificates, enhancing the security of IoT devices across a global network[25]. Financials and Investments - Research and development expenditures were $6.5 million in 2019, representing 29.9% of net sales, compared to $7.4 million (25.2%) in 2018 and $6.9 million (20.3%) in 2017[46]. - Data I/O's solutions are positioned to benefit from the growing semiconductor market, driven by increased demand for programmable devices and security[28]. Competition and Market Position - The competition in the programming systems market is highly fragmented, with low-cost automated solutions gaining market share, primarily competing on price[39]. - The company believes it continues to be the largest competitor in the programming systems equipment market and has been gaining market share with new products[41]. Manufacturing and Workforce - Manufacturing is primarily done in Redmond, Washington, and Shanghai, China, with both facilities ISO 9001:2015 certified[42]. - As of December 31, 2019, the company had a total of 96 employees, with 46 located outside the U.S.[50]. Regulatory and Compliance - The company has not experienced difficulties related to export regulations and has not made sales to blacklisted countries[37][38].

Financial Data and Key Metrics Changes - Net sales in Q4 2019 were $5.9 million, down from $7.9 million in Q4 2018, but up from $3.8 million in Q3 2019 [14] - For the full year 2019, sales were $21.6 million compared to $29.2 million in 2018 [14] - The net loss in Q4 2019 was $496,000 or $0.06 per share, compared to net income of $648,000 or $0.08 per diluted share in Q4 2018 [19] - The GAAP net loss for 2019 was $1.2 million or $0.14 per diluted share, compared to net income of $1.6 million or $0.19 per diluted share in 2018 [19] - Gross margin for Q4 2019 was 55.9%, down from 58.2% in Q4 2018, primarily impacted by fixed costs and tariffs [16] Business Line Data and Key Metrics Changes - Capital equipment sales represented 64% of revenues in Q4 2019, down from 65% in Q4 2018, while adapters and consumables accounted for 22% of revenues, down from 24% [15] - For the full year 2019, capital equipment sales were 58% of revenues, compared to 65% in 2018 [15] Market Data and Key Metrics Changes - International sales represented approximately 94% of total net sales in Q4 2019, up from 92% in Q4 2018 [15] - Backlog at December 31, 2019, was $2.9 million, up from $1.7 million at September 30, 2019 [20] Company Strategy and Development Direction - The company plans to invest for the long term to retain and extend its leadership position in programming, particularly in automotive electronics and security for IoT [8] - The strategy for SentriX includes expanding presence and simplifying operations in 2020, with a focus on market development and R&D initiatives [12][18] Management's Comments on Operating Environment and Future Outlook - Management noted that the coronavirus has impacted supply chain and demand creation, particularly in Asia, but they believe their multi-source supply chain will minimize short-term disruptions [9][11] - There are indications that the market may be bottoming out in China, with some customers seeing increased activity [11] - The company remains optimistic about long-term growth despite short-term challenges, maintaining a strong balance sheet and no debt [30] Other Important Information - The company had $13.9 million in cash at the end of 2019 and repurchased 302,000 shares during the year [21] - Days sales outstanding (DSO) were below the 60-day target range but increased slightly from the previous quarter due to higher revenues [22] Q&A Session Summary Question: Can you comment on the linearity of orders in Q4 and what you're seeing in the first couple of months of Q1? - Management indicated that order strength continued throughout Q4 and some backlog rolled into Q1, but there are concerns about demand in China due to the coronavirus [24] Question: Will there be orders in the Internet of Things category during 2020? - Management confirmed plans for a more public presence in IoT and noted traction with SentriX, with ongoing negotiations for additional systems [26] Question: How do you see the coronavirus changing market demand for your products? - Management acknowledged short-term disruptions but emphasized that Data I/O is well-prepared to navigate challenges due to its strong balance sheet and debt-free status [30]

NASDAQ: DAIO Data I/O Corporation December 2019 Investor Presentation Safe Harbor The matters that we discuss today will include forward- looking statements that involve risks factors that could cause Data I/O Corporation's results to differ materially from management's current expectations. We encourage you to review the Safe Harbor statement contained in the earnings release as well as our most recent SEC filings for a complete description. Additionally, those forward-looking statements are made as of tod ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 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) Washi ...

Data I/O Corporation. (DAIO) Q3 2019 Earnings Conference Call October 31, 2019 5:00 PM ET Executives Jordan Darrow - IR, Manager Anthony Ambrose - President, CEO Joel Hatlen - CFO, COO Analysts Jaeson Schmidt - Lake Street Robert Anderson - Penbrook Arthur Winston - Pilot Advisors Operator Good day, and welcome to the Data I/O Corporation Third Quarter 2019 Financial Results Conference Call and Webcast. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there ...

NASDAQ: DAIO Data I/O Corporation September 2019 Investor Presentation Safe Harbor The matters that we discuss today will include forward- looking statements that involve risks factors that could cause Data I/O Corporation's results to differ materially from management's current expectations. We encourage you to review the Safe Harbor statement contained in the earnings release as well as our most recent SEC filings for a complete description. Additionally, those forward-looking statements are made as of to ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 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 ...

Data I/O Corporation (DAIO) Q2 2019 Earnings Conference Call August 1, 2019 5:00 PM ET Company Participants Jordan Darrow - Investor Relations Manager Anthony Ambrose - President & Chief Executive Officer Joel Hatlen - Chief Operating Officer & Chief Financial Officer Conference Call Participants Robert Anderson - Penbrook Management Avi Fisher - Long Cast Advisers Operator Good day, and welcome to the Data I/O Corporation Second Quarter 2019 Financial Results Conference Call and Webcast. All participants w ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 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) Washingto ...