Data I/O Corporation · NASDAQ:DAIO
Data I/O — Investor Presentation (June 2024)
24 slides from Data I/O's investor presentation, June 2024
Slide 1: Bringing Devices to Life
Bringing Devices to Life Nasdaq: DAIO Anthony Ambrose June 2024
Slide 2: Safe Harbor
Safe Harbor Statements in this presentation concerning economic outlook, expected revenue, expected margins, expected savings, expected results, orders, deliveries, backlog and financial positions, semiconductor chip shortages, supply chain expectations, as well as any other statement that may be co
Slide 3: Data I/O at a Glance
Data I/O at a Glance Founded in Patents ISO 9001:2015 Global Service 1972 Certifications & Support What We Do We enable global automotive and industrial electronics manufacturing Solutions We deliver Programming Equipment, Consumables and Services for Global Manufacturers of Electronic Systems 100 >
Slide 4: Supporting the Secure Digital World
Supporting the Secure Digital World Semi Supplier OEM Programming Center Final Assembly Post Production Develop Manufacture: OEMs, Contract Manufacturers, Programming Centers Consume: End Users Silicon Chips to be programmed: Flash Memory Final Products Microcontrollers Secure Elements Data Programm
Slide 5: Serving Customers Globally in Growing Markets
Serving Customers Globally in Growing Markets • The largest programming company in the world, 2-3 times larger than the next programming company • Trusted supplier to 18 of the top 20 automotive electronics suppliers • 20 or more new customers for 3 consecutive years • Providing mission critical med
Slide 6: Market Outlook
Bringin g De vices to Life Market Outlook
Slide 7: Growth Strategies
Growth Strategies Innovation Market Partnerships Expansion and M&A Growth Strategy Global Service Talent & & Support People CONFIDENTIAL 7
Slide 8: Emerging Edge AI Applications Drive Broad Market Opportunity
Emerging Edge AI Applications Drive Broad Market Opportunity Industrial Automotive / ADAS Smart Cities Automation IoT Smart Meters Wearables Medical Smart Homes CONFIDENTIAL 8
Slide 9: AI Represents a Tremendous Opportunity for DAIO
AI Represents a Tremendous Opportunity for DAIO Involves Our Key Impacts ~90% of Our Data + Security Growth Drivers Business 11% Growth in Code Size 26% Growth in Complexity 63% Unit Growth Automotive Industrial Programming Centers CONFIDENTIAL 9
Slide 10: Data I/O Supports Automotive Electronics Growth Areas
Data I/O Supports Automotive Electronics Growth Areas Total Automotive Semiconductor Forecast by Application Infotainment / Connectivity IVI ADAS / Autonomous Driving / Edge AI Electrification Security Source: McKinsey CONFIDENTIAL 8 10
Slide 11: Automotive Electronics Growth Areas
Automotive Electronics Growth Areas Infotainment/ Electrification ADAS/Autonomous Connectivity Security IVI Driving/Edge AI 2D map / application New powertrain Sensors Vehicle Ridesharing Heads-up display Charging High performance Infrastructure Car sharing infrastructure computing Digital cluster C
Slide 12: IoT Device Security by SentriX
IoT Device Security by SentriX® SentriX secures the global electronics supply chain and protects IoT device intellectual property from point of inception to deployment in the field With more than 20 security patents granted, SentriX from Data I/O offers a unique and highly differentiated approach fo
Slide 13: OEMs Using Our Security Provisioning Technology
OEMs Using Our Security Provisioning Technology Electric Vehicle Manufacturer Water Meter OEM An electric vehicle manufacturer Heated and chilled water is using a trusted platform metering is being mandated in module to secure its supply chain Germany and requires strong and prevent cloning of its s
Slide 14: Financial Overview
Bringin g De vices to Life Financial Overview
Slide 15: Company Snapshot
Company Snapshot Recent Achievements and Trends Company Snapshot (1)(2) NASDAQ: DAIO • Global Leader in programming revenue. Over 500 PSV systems sold since inception in 2013 representing over 1.5 billion units/year capacity in the Headquarters: Redmond, WA installed base Established: 1972 • Strong
Slide 16: Growing Recurring Revenue Mix - Systems
Growing Recurring Revenue Mix - Systems Growth in PSV system installed base is catalyst for diversification in recurring revenue mix 2023 Revenue 13% 29% 58% Systems Adapters Software (Contracts,SW,SentriX) More systems in the field drives an increase in: • Adapter sales • Field upgrades • Software
Slide 17: Growing Recurring Revenue Mix - Adapters
Growing Recurring Revenue Mix - Adapters 2023 Revenue Adapter Revenue Growth Drivers: • More systems deployed in the field 13% • High system utilization = repeat adapter orders • New customers / projects = new adapters 29% • Multisource semiconductor devices = new algorithms and adapters 58% Systems
Slide 18: Growing Recurring Revenue Mix – Software, SentriX, Service
Growing Recurring Revenue Mix – Software, SentriX, Service 2023 Revenue Software, SentriX, Service Revenue Growth Drivers: • New customers / projects = new algorithms for new adapters 13% • More systems = more service contracts • New software and licensed new features extends system capability and p
Slide 19: Financial Outlook
Financial Outlook 2024 Double-digit bookings growth with back-end loaded revenue GM% mid-to-high 50% range Continued operating expenses and inventory management controls Strong operating leverage in model – approximately 40% of sales Continue to have no debt CONFIDENTIAL 19
Slide 20: Investment Merits: Positioned for Long-Term Growth
Investment Merits: Positioned for Long-Term Growth End market growth Increasing Recurring in Automotive, IoT and Revenue Industrial Strong balance sheet NASDAQ: DAIO Experienced and operating leverage management Growth in Global sales, support security deployment and infrastructure Long Term Secular
Slide 21: Thank You!
Thank You! NASDAQ: DAIO For more information, please go to https://www.dataio.com/Company/Investor-Relations/Data-I-O-Profile NASDAQ: DAIO CONFIDENTIAL 21
Slide 22: IoT Growth Across a Number of Markets
IoT Growth Across a Number of Markets Source: Statista Market Insights: https://www.statista.com/outlook/tmo/internet-of-things/worldwide#revenue CONFIDENTIAL 22
Slide 23: 2023 Annual Financial Outlook
2023 Annual Financial Outlook 2023 OUTLOOK 2023 RESULTS Revenue growth, driving margins, improving cash flow Revenue grew, margins improved, cash up and invested in and investing in our future our future Double-digit revenues growth 16% revenues growth Recurring revenues toward 50% in 3-5 years
Slide 24: Balance Sheet and Capital Structure Overview
Balance Sheet and Capital Structure Overview Balance Sheet Highlights Balance Sheet Strategy At March 31, 2024: • Important to maintain strong balance sheet in a • $12.0 million in cash and cash equivalents cyclical industry, with ~58% of revenues from • No debt system sales • $18.1 million of net w