Data I/O (US:DAIO)2024-04-26 02:27Financial Data and Key Metrics Changes - The company reported Q1 2024 revenue of $6.1 million, down 16% from $7.2 million in the prior year period, attributed to lower backlog and timing of shipments [33] - Bookings for Q1 were $8.1 million, up 41% year-over-year, marking the highest bookings level in eleven quarters [19][33] - Gross margin for Q1 was 53%, a decline of 5 percentage points from the previous year, driven by lower sales volume and a higher mix of distributor channel sales [12] Business Line Data and Key Metrics Changes - The automotive sector remains the largest market, with significant programming demand driven by ADAS and edge AI applications [6][7] - Industrial IoT is the second largest market, positively impacted by edge AI, contributing to increased programming demand [6] - The backlog increased by $1.7 million to $4.5 million as of March 31, 2024, indicating strong future revenue potential [12] Market Data and Key Metrics Changes - The Americas region has shown strong performance, but there is a noted slowdown in demand for EVs, while EMEA has picked up in bookings and future opportunities [20][41] - Asia continues to be strong, particularly in Korea and China, with a focus on the EV industry [40] - Europe, which had been weak, is now showing strength with a strong bookings quarter in Q1 [41] Company Strategy and Development Direction - The company is focusing on disciplined growth targeting automotive, industrial, and programming center markets worldwide, with an emphasis on edge AI applications [28] - There is a commitment to innovation and investment in programming technology, as evidenced by the announcement of the 500th PSV System order [8] - The company aims to return gross margins to a normalized mid to high 80% range by the end of 2024 [49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating market opportunities despite uncertainties in global and geopolitical events [17] - The company anticipates a back-end loaded year with most backlog recognized as revenue in the second half of 2024 [19][38] - Management expects double-digit bookings growth for 2024, supported by strong operational discipline and cost reductions [13] Other Important Information - The company ended Q1 with $12 million in cash, slightly down from the beginning of the quarter, reflecting higher expenditures typical for Q1 [11] - The company has no debt and maintains a strong cash position, allowing it to navigate market challenges [34] Q&A Session Summary Question: Can you provide clarity on backlog and its geographical mix? - Management indicated that the backlog is expected to ship later in the year, with a significant portion tied to new customer sites requiring advance notice for orders [54] Question: What is the market pulse globally, especially regarding North America and overseas? - Management noted strength in Asian markets, particularly in the EV sector, while Europe is showing improved bookings after a period of weakness [40][41] Question: Which end markets are expected to drive orders in 2024? - Management highlighted that automotive and industrial markets remain fundamental, with edge AI being a connecting theme driving increased programming demand [44] Question: Can you elaborate on the interesting deals in the SentriX pipeline? - Management mentioned ongoing presales efforts in the IoT space, with several promising deals in the funnel, although the growth in unit sales continues to rise [45]