Data I/O Corporation · NASDAQ:DAIO
Data I/O — IR CEO Summit June 2015
22 slides from Data I/O's conference presentation, July 2015
Slide 1: Investor Presentation July 2015
Nasdaq: DAIO Anthony Ambrose President and CEO Data I/O Corporation Investor Presentation July 2015
Slide 2: Safe Harbor
Safe Harbor “The matters that we discuss today will include forward-looking statements that involve risks factors that could cause Data I/O Corporation’s results to differ materially from management’s current expectations. We encourage you to review the Safe Harbor statement contained in the earning
Slide 3: Who We Are
Who We Are “Data I/O helps enable the digital world by designing, manufacturing, and selling programming systems to global electronic device manufacturers.” 3
Slide 4: Supporting the Digital World
Supporting the Digital World Data I/O’s programming systems are used by the world’s leading manufacturers, programming centers, and contract manufacturers, to program integrated circuits and bring their devices to life. Circuits Need Options for Data I/O Final End User To Be Programming On-Line or O
Slide 5: Company Snapshot
Company Snapshot Recent Achievements and Trends Company Snapshot (1)(2) • Focused business strategy that is achieving NASDAQ: DAIO operating and financial milestones Headquarters: Redmond, WA • Ranked 22nd in Puget Sound Business Journal’s 2015 Fastest Growing Public Companies list Established: 1972
Slide 6: Diverse Offering of Market Leading Programming Systems
Diverse Offering of Market Leading Programming Systems Diverse Product Offerings History of Innovation Automated Off-Line • Data I/O’s products are viewed as the “gold standard” for advanced programming equipment and IP property management solutions. • Invested $4.7 million in R&D in 2014 to create
Slide 7: PSV Product Line
PSV Product Line • PSV series programming systems offer customers automated, off-line systems with medium and high volume output, and high rate of change. • The PSV7000 is the world’s premier automated programming system with the speed, flexibility and fast changeover to handle any job at the lowest
Slide 8: Razor/Razorblade Model
Razor/Razorblade Model Equipment Consumables • 60% of 2014 Sales Adapters Software and Maintenance • Off-line and in-line programming systems • Automated systems cost $65,000 to $628,100 • Manual systems cost $675 to • Target 25% of sales • 12% of 2014 Sales $32,400 • 28% of 2014 Sales • Annual soft
Slide 9: Servicing Customers Globally in Growing Markets
Servicing Customers Globally in Growing Markets • Data I/O delivers cutting edge products and technology to 2014 Sales by End Markets hundreds of customers around the globe Programing • Global footprint with headquarters in Redmond, Centers Automotive 17% Washington and offices located in Shanghai,
Slide 10: The Programming Market is Segmented
The Programming Market is Segmented Device Programming in Production is done many ways, depending on code size, factory size, device type, and installed equipment Data I/O’s Current Markets Future Addressable Markets Manual Automated Off-Line and Programming In-System Programmers In Line Programmers
Slide 11: Positioned for Growth
Positioned for Growth Gain Market Share Current Customers/Traditional Markets • The PSV7000 has reinvigorated Data I/O’s global automotive and industrial customer base • Winning new and former customers • Upgrading the installed base • PSV7000 now deployed on four continents Expand Market Opportunit
Slide 12: Growth of Electronic Systems in Automobiles
Growth of Electronic Systems in Automobiles According to The Clemson University Vehicular Electronics Laboratory, a typical automobile on the road today has over 50 computer controlled electronic systems. http://www.cvel.clemson.edu/auto/systems/auto-systems.html 12
Slide 13: Technology Arms Race in Automotive Infotainment
Technology Arms Race in Automotive Infotainment Instrument Clusters are changing dramatically within the automotive industry. Simple instruments have given way to powerful graphical computers with large FLASH memories. The Audi TT has upgraded its legacy dashboard technology to the Audi Virtual Cock
Slide 14: PSV Line Positioned For Growth in Automotive Electronics
PSV Line Positioned For Growth in Automotive Electronics Data I/O’s PSV product line is uniquely positioned to service automobile electronic manufacturers requirements for large FLASH programming Automotive Electronics Programming Data I/O Solutions Uniquely Positioned Requirements Presents New Chal
Slide 15: PSV7000 Answers Automotive Electronics Manufacturers Needs
PSV7000 Answers Automotive Electronics Manufacturers Needs “We were able to do the work of two to three competitive systems with one PSV7000 from Data I/O” -- Global Automotive Infotainment Leader PSV7000 Large Capacity, High-Speed and Integrated Laser Marking Velocity, Versatility, Value Configurab
Slide 16: Lower Total Cost of Programming
Lower Total Cost of Programming PSV7000 with FlashCORE III vs. Competitor In an automotive infotainment application, Data I/O’s current PSV7000 technology lowered the total cost of programming for a customer to $0.15 per circuit compared to competitive offerings that had a total cost of programming
Slide 17: Automotive Electronics Decades Long Secular Trend
Automotive Electronics Decades Long Secular Trend Acceptance of electronic automotive technology is in its infancy. As more smart content is put into cars, programming requirements will continue to increase from today’s standards. Registered Vehicles with IoT Application by Region World Market, Fore
Slide 18: Long-Term Growth Influenced by Internet of Things
Long-Term Growth Influenced by Internet of Things Connectivity + Intelligence + Security = Demand for Programming Increasing Demand for Programming According to Gartner: IoT Semiconductor Revenue by Electronic Equipment • Endpoints of the Internet of Things (IoT) will grow at a 35.2% CAGR from 2013
Slide 19: Financial Overview
Financial Overview Annual Sales (in millions) Financial Highlights 2015 First-Quarter Highlights $30.0 (on a year-over-year basis unless noted): $25.0 Net sales of $5.9 million, up 23% $20.0 Net income of $49,000, or $0.01 per diluted share $15.0 compared to a net loss of $343,000, or $0.04 per
Slide 20: Balance Sheet and Capital Structure Overview
Balance Sheet and Capital Structure Overview Annual Adjusted EBITDA Overview $6.0 • Important to maintain strong balance sheet $4.0 • Financial flexibility allows the company to: o Withstand downturns in semiconductor $2.0 cycle $- o Invest in organic and acquisitive growth opportunities $(2.0) • $5
Slide 21: Financial Model
Financial Model • 2012 and 2013 cost cutting significantly lowered Data I/O’s breakeven point • Ongoing cost improvement initiatives • Operating leverage produces meaningful incremental profitability Annual Revenues 21
Slide 22: Positioned for Long-Term Growth
Positioned for Long-Term Growth Strong Brand with Market Leading Expansion Products Strong Stable Financially & Balance Seasoned Positioned For Management Sheet Growth Significant Global Sales and Operating Infrastructure Leverage Improved CAPEX Environment 22