Data I/O (US:DAIO)2023-03-29 16:00Sales Performance - In 2022, equipment sales accounted for 57% of total sales, while adapter sales were 30% and software and maintenance sales were 13%[25]. - In 2022, net sales in the U.S. were $1.8 million, a decrease from $2.6 million in 2021 and an increase from $1.5 million in 2020[33]. - International sales accounted for approximately 93% of net sales in 2022, compared to 90% in 2021 and 93% in 2020[34]. - Net international sales for 2022 were $22.4 million, down from $23.2 million in 2021 and up from $18.8 million in 2020[35]. - The backlog of pending orders was approximately $4.8 million as of December 31, 2022, compared to $2.9 million in 2021 and $3.9 million in 2020[41]. Market Conditions - The company experienced supply chain disruptions due to COVID-19, particularly with a two and a half month shutdown of operations in Shanghai, impacting shipping times and customer demand[15]. - The strengthening of the US Dollar against foreign currencies, especially the Euro and Yuan, created significant headwinds for translated consolidated revenues[15]. - The semiconductor chip shortages that began in mid-2021 continued to affect operations into 2022, leading to supply chain unreliability[15]. - The company reported that the automotive electronics market remains strong, driven by long-term forecasts for growth over the next decade[15]. Product and Technology - The SentriX security deployment system operates on a pay-per-part basis, contributing to recurring revenue streams alongside consumables and service fees[24]. - The PSV7000 Automated Programming System is particularly well-adopted in the automotive electronics sector, supporting security deployment upgrades[20]. - The LumenX programming engine is designed for high-performance programming of large NAND FLASH and microcontrollers, addressing increasing memory densities[23]. - Data I/O's solutions target high-volume markets, specifically automotive electronics and IoT systems, which are expected to grow significantly[28]. Research and Development - Research and development expenditures in 2022 were $6.1 million, representing 25% of net sales, down from 26% in 2021 and 31% in 2020[43]. - The company focuses its R&D efforts on strategic growth markets, including automotive electronics, IoT, and security deployment[42]. - The company has approximately 20 U.S. and international awarded patents related to the SentriX platform and security provisioning[44]. Workforce and Management - As of December 31, 2022, the company had a total of 95 employees, with 45 located outside the U.S.[47]. - The company experienced challenges in recruiting assembly technicians and software development engineers due to tight labor markets in 2022[48]. - Rajeev Gulati has been with Data I/O since July 2013, serving as Chief Technology Officer and Vice President of Engineering, bringing extensive experience from AMD and other tech companies[56]. - Michael Tidwell joined Data I/O in May 2019 as Vice President of Marketing and Business Development, previously holding key positions in AI and software security sectors[57]. Corporate Governance and ESG - The company has a diverse Board of Directors and is committed to ESG initiatives, including community engagement and environmental responsibility[50]. Market Risk - No quantitative or qualitative disclosures about market risk were applicable in the current report[175].