Data I/O (US:DAIO)2023-08-13 16:00Financial Performance - In Q2 2023, the company reported net sales of $5,935,000 for automated programming systems, a 62.9% increase compared to $3,644,000 in Q2 2022[79] - Non-automated programming systems generated $1,463,000 in Q2 2023, reflecting a 30.0% increase from $1,125,000 in Q2 2022[79] - The company achieved profitability for the fourth consecutive quarter, indicating a return to more normal operations after previous disruptions[59] - Net sales for Q2 2023 were $7.4 million, a 55.1% increase from $4.8 million in Q2 2022, driven by recovery from COVID-19 restrictions and supply chain improvements[80] - Gross margin for Q2 2023 was 59.1%, an increase from 57.8% in Q2 2022, attributed to higher sales volume and improved product mix[85] - EBITDA for Q2 2023 was $490,000, compared to a loss of $445,000 in Q2 2022, indicating improved operational performance[102] - Net income for Q2 2023 was $300,000, compared to a net loss of $657,000 in Q2 2022, indicating a significant improvement[103] - Adjusted EBITDA, excluding equity compensation, reached $870,000 in Q2 2023, compared to a loss of $65,000 in Q2 2022, showcasing strong operational efficiency[103] - For the first half of 2023, net income was $395,000, a recovery from a net loss of $2,477,000 in the same period of 2022[103] - The total adjusted EBITDA for the first half of 2023 was $1,372,000, compared to a loss of $996,000 in the first half of 2022, highlighting a turnaround in financial performance[103] Market and Sales Trends - International sales accounted for approximately 86.3% of total net sales in Q2 2023, down from 89.2% in the same period last year[81] - Year-to-date bookings reached $13.3 million, up from $12.6 million in the prior year, despite softness in China demand due to new automotive emission standards[83] - The strong dollar began to reverse in Q4 2022, providing a favorable impact on revenue through Q2 2023, particularly against the Euro[61] Research and Development - The company is focusing R&D efforts on automotive electronics and IoT programming technologies, aiming to enhance secure supply chain solutions and automated programming systems[62] - Research and development expenses in Q2 2023 were $1.72 million, a 10.5% increase from $1.56 million in Q2 2022, reflecting investment in product lines[87] Operational Efficiency - The company plans to continue reducing inventory levels throughout 2023, indicating improved supply chain management[60] - The impact of semiconductor shortages is still present but is being managed effectively, with expectations for improvement in 2023[61] - The company is adapting to global economic challenges, including inflation and interest rate hikes, while focusing on cost management and growth strategies[61] Financial Position - The company maintains a strong cash position, allowing for continued investment in market expansion and new product development[64] - Working capital at June 30, 2023, was $18.0 million, an increase of $0.4 million compared to December 31, 2022[95] - The company reported a backlog of approximately $3.8 million as of June 30, 2023, up from $3.2 million at March 31, 2023[84] Expenses - Selling, general, and administrative expenses rose to $2.49 million in Q2 2023, a 29.1% increase from $1.93 million in Q2 2022, driven by higher commissions and recruiting fees[89] - Interest income surged to $49,000 in Q2 2023, a 4800% increase from $1,000 in Q2 2022, due to higher interest rates and invested balances[91] - The company reported a total depreciation and amortization expense of $130,000 for Q2 2023, slightly down from $152,000 in Q2 2022[103] - Equity compensation expenses remained consistent at $380,000 for both Q2 2023 and Q2 2022, indicating stable compensation practices[103]