Data I/O Corporation · NASDAQ:DAIO
Data I/O — Q3 2015 Earnings Presentation
22 slides from Data I/O's earnings presentation, 2015
Slide 1: 2015 Third Quarter Investor Presentation
Nasdaq: DAIO Anthony Ambrose President and CEO Data I/O Corporation 2015 Third Quarter Investor Presentation
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) • New products winning in the marketplace NASDAQ: DAIO • Announced breakthrough programming Headquarters: Redmond, WA technology, significantly increasing Data I/O’s competitiveness Established: 1972 • Automotive electronics dri
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: LumenX: Groundbreaking Programming Technology
LumenX: Groundbreaking Programming Technology Data I/O’s PSV7000 with LumenX Significantly Lowers the Total Cost of Program as One PSV7000 Can Now Do the Work of Multiple Competing Systems LumenX Details LunemX Reduces Cost of Programming • Launched August 2015 • Revolutionary performance, best in $
Slide 9: 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 10: 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 Programming Centers • Global footprint with headquarters in Redmond, 17% Automotive 30% Washington and offices located in Shang
Slide 11: 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 In-System Programming Programmers In Line Programmers
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: Infotainment Unit Growth: 2x in 4 Years
Infotainment Unit Growth: 2x in 4 years 14
Slide 15: 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 Present New Chal
Slide 16: PSV7000 Programming System
PSV7000 Programming System “We were able to do the work of two to three competitive systems with one PSV7000 from Data I/O” “We could not meet demand with our existing ISP system, and decided to standardize on the PSV7000” 16
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 Third-Quarter Highlights $30.0 (on a year-over-year basis unless noted): $25.0 Net sales of $6.2 million $20.0 On a constant currency basis, sales were up 4.6% $15.0 Net income of $439,000, or $0.05 per diluted share $10.0
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 • Reduced breakeven further in 2015 second quarter by entering into a lease for a new headquarters facility that will save the company $0.3 million per year • Ongoing cost improvement initiatives • Operatin
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