Data I/O Corporation (DAIO) Q3 2020 Earnings Conference Call October 30, 2020 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 Jaeson Allen Min Schmidt – Lake Street George Melas-Kyriazi – MKH Management Robert Anderson – Penbrook Operator Good afternoon and welcome to the Data I/O Corporation Third Quarter 2020 Financial Results Conference ...

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, 2020 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 2020 Earnings Conference Call August 4, 2020 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 Jaeson Schmidt - Lake Street Art Winston - Pilot Advisors Mark Spiegel - Stanphyl Capital Steve Spence - RBC Avi Fisher - Long Cast Advisers Operator Good afternoon and welcome to the Data I/O Corporation Second Quarte ...

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, 2020 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 ...

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]

Company Overview - Data I/O Corporation is a provider of programming systems used by manufacturers to securely program integrated circuits[3] - Approximately 60% of Data I/O's revenue comes from Automotive Electronics customers[5] - The company completed a $2 million stock buyback in 3Q19[5] Financial Performance - Sales (TTM) were $23.6 million[5] - Adjusted EBITDA (TTM) was $2.1 million[5] - Cash & Securities as of 9/30/19 were $15.2 million[5] - Third quarter 2019 net sales were $3.8 million, with bookings of $4.3 million[15] - Gross margin as a percentage of sales was over 52% in 3Q19[15] - Net loss in 3Q19 was $(844,000) or $(0.10) per share[15] Market and Growth Strategy - Automotive represented 57% of bookings year-to-date through 3Q19[15] - Capital equipment accounted for approximately 65% of 2018 sales[20] - Consumables accounted for approximately 24% of 2018 sales[20] - Software and maintenance accounted for approximately 11% of 2018 sales[20]

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 ...