Revenue Performance - Second quarter revenue was $5.1 million, down 32% from $7.4 million in the prior year period[43] - Total programming systems revenue was $5.1 million, a decline of 31.6% from $7.4 million in the prior year[59] - Net sales for Q2 2024 were $5.1 million, a decrease of 31.6% compared to $7.4 million in Q2 2023, primarily due to backlog conversion timing and lower bookings in the Americas[60] - Equipment sales dropped by 48.4% year-over-year to $2.4 million, while total net sales for the first half of 2024 were $11.2 million, down 23.7% from $14.6 million in the same period last year[60] Bookings and Backlog - Bookings for the first half of 2024 were $13.7 million, slightly up from $13.3 million in the prior year[43] - The backlog increased by $2.6 million from the beginning of the year to $5.4 million as of June 30, 2024[43] - Backlog increased to approximately $5.4 million as of June 30, 2024, up from $2.8 million at the beginning of the year[61] Gross Margin and Expenses - Gross margin as a percentage of sales increased by 170 basis points from the first quarter of 2024[44] - Gross margin as a percentage of net sales decreased to 54.5% in Q2 2024 from 59.1% in Q2 2023, reflecting lower sales volume and product mix[62] - Operating expenses were reduced by 21% from the prior year period and 19% from the first quarter of 2024[44] - Research and development expenses in Q2 2024 were $1.4 million, down 17.8% from $1.7 million in Q2 2023, representing 27.9% of net sales[63] - Selling, general and administrative expenses decreased by 23.3% to $1.9 million in Q2 2024, accounting for 37.7% of net sales[64] International Sales - International sales accounted for 88.4% of total net sales in the second quarter[58] - International sales accounted for approximately 88% of total net sales in Q2 2024, up from 86% in Q2 2023[61] Financial Position - Cash and cash equivalents decreased to $11.4 million as of June 30, 2024, down $901,000 from December 31, 2023[67] - The company reported an EBITDA loss of approximately $379,000 in Q2 2024, compared to a gain of $490,000 in Q2 2023[72] Tax and Legal Matters - The effective tax rate was impacted by a valuation allowance of $9.3 million as of June 30, 2024, reflecting uncertainty in recognizing deferred tax assets[67] - As of June 30, 2024, the company was not a party to any material pending legal proceedings[76] Internal Controls and Procedures - The company evaluated the effectiveness of its disclosure controls and procedures, concluding they were effective at a reasonable level of assurance as of the evaluation date[73] - There were no changes in the company's internal controls during the reporting period that materially affected financial reporting[74] Strategic Focus - The company remains focused on growth in the automotive, industrial, and programming center markets while maintaining disciplined spending[44]
Data I/O (DAIO) - 2024 Q2 - Quarterly Report