Data I/O Corp (DAIO) Q3 2024 Earnings Call Highlights: Navigating Market Challenges with ...

• Revenue: $5.4 million in Q3, down 17% from $6.6 million in the prior year period.

• Cash Balance: $12.4 million as of September 30th, up $1 million from Q2.

• Adjusted EBITDA: Positive $37,000 in Q3.

• Accounts Receivable: $2.6 million with DSO improving to 43 days from 55 days in Q2.

• Inventory: $6.6 million, increased from $5.9 million at the beginning of the year.

• Net Working Capital: $17.6 million at the end of Q3, unchanged from Q2.

• Gross Margin: 54% in Q3, comparable to prior quarter and prior year.

• Operating Expenses: $3.2 million in Q3, down $334,000 or 9% from the prior year.

• Net Loss: $307,000 for Q3, an improvement of $490,000 from Q2's net loss of $797,000.

• Backlog: $4.7 million as of September 30th, down $700,000 from the start of the quarter.

• Warning! GuruFocus has detected 4 Warning Sign with ALFVF.

Release Date: October 24, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Data I/O Corp (NASDAQ:DAIO) maintains a strong cash position with $12.4 million at the end of Q3, marking the highest level in 10 quarters.

• Operating expenses have been reduced by more than $1 million year-to-date, reflecting an 11% decrease from the previous year.

• The company achieved a positive adjusted EBITDA of $37,000 in Q3, indicating effective cost management despite revenue challenges.

• Data I/O Corp (NASDAQ:DAIO) has a strong backlog of $4.7 million, which is expected to contribute to future revenue as market conditions improve.

• The company is actively pursuing diversification of revenue streams by engaging with electronic supply chain component suppliers to expand beyond the automotive electronics sector.

• Third quarter revenue decreased by 17% to $5.4 million compared to the prior year, primarily due to slowdowns in the automotive electronics market.

• The company reported a net loss of $307,000 for Q3, although this was an improvement from the previous quarter's loss.

• Automotive market headwinds in the Americas and Europe have led to reduced customer capacity expansion and lower system shipments.

• Inventory levels increased to $6.6 million due to lower sales year-to-date and anticipation of future backlog reductions.

• The company's growth strategy is still in transition, with new product and market initiatives yet to be fully realized, creating uncertainty about the timeline for returning to growth.

Q: Can you discuss the current state of the automotive market and the expected timeline for recovery in demand? A: Bill Wentworth, President & CEO: The automotive market has been choppy, largely due to overshooting in EV and hybrid content expansion. While the pace of growth is not significant yet, we expect recovery to begin next year as new models are introduced. We believe we are at the bottom of the trough and anticipate an upward trend soon.