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 ...

Part I. Financial Information [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Unaudited consolidated financial statements for Q2 2019 reflect decreased net sales, net income, total assets, and stockholders' equity, incorporating new lease accounting under ASC 842 Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2019 | December 31, 2018 | | :--- | :--- | :--- | | Cash and cash equivalents | $15,165 | $18,343 | | Total Current Assets | $24,813 | $27,920 | | Total Assets | $29,690 | $30,723 | | Total Current Liabilities | $5,272 | $6,855 | | Total Liabilities | $6,961 | $7,366 | | Total Stockholders' Equity | $22,729 | $23,357 | Consolidated Statement of Operations Highlights (in thousands, except per share) | Metric | Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $5,834 | $7,204 | $11,892 | $14,834 | | Gross margin | $3,584 | $4,249 | $7,269 | $8,665 | | Operating income | $75 | $246 | $105 | $590 | | Net income | $127 | $486 | $153 | $616 | | Diluted EPS | $0.02 | $0.06 | $0.02 | $0.07 | Consolidated Statement of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | | :--- | :--- | :--- | | Net cash used in operating activities | ($1,455) | ($798) | | Net cash used in investing activities | ($305) | ($491) | | Net cash used in financing activities | ($1,442) | ($420) | | **Net decrease in cash** | **($3,202)** | **($1,709)** | - The company adopted the new lease accounting standard, ASC 842, on January 1, 2019, resulting in the recognition of a **$2,176 thousand** right-of-use asset and corresponding lease liabilities on the balance sheet[39](index=39&type=chunk)[40](index=40&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the **19% decline** in Q2 2019 net sales due to automotive electronics downturn, improved gross margin, reduced operating expenses, and cash decrease from share repurchases and incentive compensation - The company is experiencing a capital spending cyclical downturn and is focusing on automotive electronics, IoT, and security provisioning to drive future growth[65](index=65&type=chunk)[66](index=66&type=chunk) Net Sales by Type (in thousands) | Sales Type | Q2 2019 | Q2 2018 | % Change | | :--- | :--- | :--- | :--- | | Equipment sales | $3,537 | $4,665 | (24.2)% | | Adapter sales | $1,421 | $1,750 | (18.8)% | | Software and maintenance | $876 | $789 | 11.0% | | **Total** | **$5,834** | **$7,204** | **(19.0)%** | - Net sales for Q2 2019 declined **19.0%** to **$5.8 million** compared to Q2 2018, primarily due to slower Automotive Electronics cyclical demand[89](index=89&type=chunk) - Gross margin as a percentage of sales increased to **61.4%** in Q2 2019 from **59.0%** in Q2 2018, mainly due to a favorable product mix and favorable overhead and currency variances[93](index=93&type=chunk) - Both R&D and SG&A expenses were lower in Q2 2019 compared to Q2 2018, primarily due to lower headcount-related costs, incentive compensation, and stock-based compensation[94](index=94&type=chunk)[95](index=95&type=chunk) - Cash decreased by **$3.2 million** since year-end 2018, mainly from paying 2018 accrued incentive compensation and repurchasing shares[100](index=100&type=chunk) Non-GAAP Reconciliation: Adjusted EBITDA (in thousands) | Metric | Q2 2019 | Q2 2018 | H1 2019 | H1 2018 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $127 | $486 | $153 | $616 | | EBITDA | $364 | $796 | $553 | $1,193 | | Adjusted EBITDA | $728 | $1,269 | $1,204 | $1,843 | [Quantitative and Qualitative Disclosures About Market Risk](index=25&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not applicable for the current reporting period - Not applicable[112](index=112&type=chunk) [Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of June 30, 2019, with no material changes to internal controls over financial reporting - Based on an evaluation as of the end of the quarter, the CEO and CFO concluded that the company's disclosure controls and procedures were effective at a reasonable level of assurance[113](index=113&type=chunk) - No changes were made during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[114](index=114&type=chunk) Part II. Other Information [Legal Proceedings](index=25&type=section&id=Item%201.%20Legal%20Proceedings) As of June 30, 2019, the company was not a party to any material pending legal proceedings - As of June 30, 2019, Data I/O was not involved in any material pending legal proceedings[115](index=115&type=chunk) [Risk Factors](index=25&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2018 - There are no material changes to the Risk Factors described in the Annual Report on Form 10-K for the year ended December 31, 2018[116](index=116&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=25&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase program, approved in October 2018, to buy back up to **$2 million** of stock - On October 31, 2018, the Board of Directors approved a share repurchase program to buy back up to **$2 million** of stock through October 31, 2019[62](index=62&type=chunk)[105](index=105&type=chunk) Share Repurchases in Q2 2019 | Month | Shares Purchased | Average Price Paid | | :--- | :--- | :--- | | April 2019 | 69,141 | $5.36 | | May 2019 | 69,798 | $4.61 | | June 2019 | 49,255 | $4.42 | | **Q2 Total** | **188,194** | **$4.81** | [Defaults Upon Senior Securities](index=26&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[118](index=118&type=chunk) [Mine Safety Disclosures](index=26&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not Applicable[118](index=118&type=chunk) [Other Information](index=26&type=section&id=Item%205.%20Other%20Information) The company reported no other information for this period - None[118](index=118&type=chunk) [Exhibits](index=26&type=section&id=Item%206.%20Exhibits) The report lists filed exhibits, including CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act, and Interactive Data Files - Exhibits filed include certifications from the Chief Executive Officer and Chief Financial Officer as required by the Sarbanes-Oxley Act (Sections 302 and 906)[118](index=118&type=chunk)

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 ...

Data I/O Corporation (DAIO) Q1 2019 Earnings Conference Call April 25, 2019 5:00 PM ET Company Participants Jordan Darrow - IR Anthony Ambrose - President, CEO Joel Hatlen - CFO, COO, VP of Operations & Finance, Treasurer and Secretary Conference Call Participants Jaeson Schmidt - Lake Street Robert Anderson - Penbrook Arthur Winston - Pilot Advisors George Melas - MKH Management Operator Good afternoon, and welcome to the Data I-O First Quarter 2019 Financial Results Conference Call. All participants will ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 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 91-0864123 (S ...

Nasdaq: DAIO Data I/O Corporation March 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 today, ...

Financial Data and Key Metrics Changes - For the full year 2018, revenues were $29.2 million, down 14% from $34.1 million in 2017, with net income of $1.6 million, marking the fifth consecutive year of profitability [7][28][36] - Gross margins for 2018 were 59.4%, an increase from 58.9% in 2017, while Q4 2018 gross margin was 58.2%, slightly down from 58.5% in Q4 2017 [30][34] - Operating income for Q4 2018 was $744,000, up from $404,000 in Q3 2018 but down from $1.2 million in Q4 2017 [33] Business Line Data and Key Metrics Changes - Automotive bookings represented 60% of total orders, with a total of 240 PSV family automated programming systems sold by the end of 2018 [8][9] - Capital equipment sales accounted for 65% of total revenues in 2018, while adapters and consumables made up 24% [28][63] Market Data and Key Metrics Changes - International sales constituted approximately 92% of total net sales in Q4 2018, with Europe being the strongest territory [27] - The automotive electronics industry is projected to grow at a compounded annual growth rate of 10% to 15% for semiconductor content in cars, and 30% to 40% for flash memory [11][12] Company Strategy and Development Direction - The company aims to maintain industry leadership in automotive electronics and expand its presence in the IoT security market through the SentriX platform [15][16] - A multi-year strategy is in place to capitalize on the shift from eMMC to UFS interfaces in automotive applications, enhancing customer retention [13][14] Management's Comments on Operating Environment and Future Outlook - The management expects 2019 to resemble 2018, with single-digit bookings growth anticipated, influenced by macroeconomic factors such as tariffs and trade tensions [25][42] - The company is optimistic about the automotive sector's growth and the potential for increased semiconductor content per vehicle [23][24] Other Important Information - The company had cash of $18.3 million at the end of Q4 2018, down from $18.9 million at the end of Q3 2018, reflecting part of a $2 million share repurchase program [40][41] - Days sales outstanding were 43 days at the end of 2018, indicating effective receivables collection [41] Q&A Session Summary Question: Will 2019 be a growth year compared to 2018? - Management indicated that double-digit bookings growth is possible, but it depends on various factors including tariffs and economic conditions [46][47] Question: What is the primary pushback from customers regarding SentriX? - Management noted that there is no significant pushback; rather, customers appreciate the flexibility of SentriX, and the challenge lies in getting new products to market [48][49] Question: Where do you see possible acceleration of revenues? - Management highlighted long-term growth in automotive electronics and the potential for the SentriX platform to drive revenue through a new recurring revenue model [52][56]