Financial Performance - Net sales for Q2 2024 were $5.1 million, a decrease of 32% compared to $7.4 million in Q2 2023[16] - Total bookings in Q2 2024 were $5.6 million, down from $7.6 million in the prior year, with first half bookings of $13.7 million slightly increasing from $13.3 million year-over-year[12][16] - The net loss for Q2 2024 was ($797,000), or ($0.09) per share, compared to net income of $300,000, or $0.03 per share, in Q2 2023[19] - Adjusted EBITDA, excluding equity compensation, was $3 thousand for the three months ended June 30, 2024, down from $870 thousand in the same period of 2023[33] - EBITDA earnings for the six months ended June 30, 2024, were a loss of $1,024 thousand, compared to earnings of $743 thousand for the same period in 2023[33] Cost and Expense Management - Gross margin as a percentage of sales was 54.5% in Q2 2024, down from 59.1% in the prior year, primarily due to lower sales volume and product mix[17] - Operating expenses in Q2 2024 were $3.3 million, a reduction of 21% from the prior year and 19% from Q1 2024[18] - Significant improvements in direct product costs and operating expense reductions are expected to aid in achieving profitability goals in the near and long term[15] Cash and Liquidity - Cash and equivalents at the end of Q2 2024 were $11.4 million, down from $12.3 million at the end of 2023, with no debt reported[20] - The company repatriated $3.4 million of cash from its China subsidiary, incurring a dividend withholding tax of $337,000[13][15] - Cash and cash equivalents decreased from $12,341 million to $11,440 million, a decline of about 7.3%[31] Balance Sheet and Assets - Total assets decreased from $27,401 million as of December 31, 2023, to $24,087 million as of June 30, 2024, representing a decline of approximately 12.5%[31] - Current liabilities decreased from $6,188 million as of December 31, 2023, to $4,494 million as of June 30, 2024, a reduction of approximately 27.4%[31] - Total stockholders' equity decreased from $20,319 million to $18,918 million, a decline of about 6.9%[31] - Accumulated earnings (deficit) worsened from a deficit of $2,645 million to a deficit of $4,249 million[31] Inventory and Backlog - Backlog at the end of Q2 2024 was $5.4 million, an increase from $4.5 million at the end of Q1 2024[12][16] - Inventories increased from $5,875 million to $6,741 million, reflecting an increase of approximately 14.7%[31] Customer Acquisition - The company achieved 8 new customer wins in Q2 2024, totaling 13 for the year[12]
Data I/O (DAIO) - 2024 Q2 - Quarterly Results