Financial Performance - Net sales for Q3 2024 were $5.4 million, a decrease of 17% compared to $6.6 million in Q3 2023[7] - Recurring services and consumable adapter sales increased by 6% year-over-year, while system sales declined by 34%[7] - Net loss for Q3 2024 was ($307,000), or ($0.03) per share, compared to a net loss of ($53,000), or ($0.01) per share in Q3 2023[9] - Adjusted EBITDA for Q3 2024 was $37,000, down from $402,000 in Q3 2023[9] - Net income for the three months ended September 30, 2024, was a loss of $307 thousand compared to a loss of $53 thousand in the same period of 2023[18] - Adjusted EBITDA, excluding equity compensation, was $37 thousand for the three months ended September 30, 2024, down from $402 thousand in the same period of 2023[18] Expenses and Margins - Gross margin as a percentage of sales was 53.9% in Q3 2024, slightly up from 53.7% in the prior year[8] - Operating expenses decreased by 9% year-over-year to $3.2 million, with contributions from all operational areas[9] Cash and Assets - Cash at the end of Q3 2024 was $12.4 million, up from $11.4 million on June 30, 2024[10] - Total current assets decreased from $24,613 thousand as of December 31, 2023, to $22,160 thousand as of September 30, 2024, a decline of approximately 10%[17] - Trade accounts receivable decreased significantly from $5,707 thousand to $2,607 thousand, representing a reduction of about 54%[17] - Total assets decreased from $27,401 thousand to $24,843 thousand, a decline of approximately 9%[17] - Total current liabilities decreased from $6,188 thousand to $4,546 thousand, a reduction of about 26%[17] - The company continues to have no debt, maintaining a strong balance sheet with net working capital of $17.6 million[10] Equity and Earnings - Accumulated earnings (deficit) worsened from ($2,645) thousand to ($4,556) thousand, indicating a deeper loss[17] - Total stockholders' equity decreased from $20,319 thousand to $19,189 thousand, a reduction of about 6%[17] - Equity compensation increased slightly from $300 thousand to $304 thousand for the three months ended September 30, 2024[18] Strategic Direction - The company aims to diversify its market approach beyond automotive electronics to strengthen its position in other sectors[7] Backlog and Inventory - Backlog as of September 30, 2024, was $4.7 million, down $0.7 million from the start of the quarter[8] Property and Equipment - Property, plant, and equipment decreased from $1,359 thousand to $928 thousand, a decline of approximately 32%[17]
Data I/O (DAIO) - 2024 Q3 - Quarterly Results