Data I/o Corporation · NASDAQ:DAIO
Data I/o — Investor Presentation (September 2022)
32 slides from Data I/o's investor presentation, September 2022
Slide 1: Bringing Devices to Life
Bringing Devices to Life Nasdaq: DAIO Anthony Ambrose September 2022
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 • Silicon Device Programming Equipment • Security Deployment as-a-Service Solutions We deliver the most secure and efficient systems to deploy firmware, data and secrets into IoT and automot
Slide 4: Company Snapshot
Company Snapshot Recent Achievements and Trends Company Snapshot (1)(2) • Global Leader in programming revenue. Over 420 PSV systems sold since inception NASDAQ: DAIO representing over 1.5 billion units/year capacity in the installed base. Installed base growth drives increase in recurring revenue o
Slide 5: Investment in DAIO
Investment in DAIO • Publicly traded pure play targeting the rapidly growing automotive electronics market • Strong cash generator, high operating leverage and no debt -- $1.18 per share in cash • Optionality with SentriX security deployment; multiple ways of software monetization targeting all clou
Slide 6: Supporting the Secure Digital World
Data I/O’s programming systems are used by the world’s Supporting the Secure Digital World leading manufacturers, programming centers, and contract manufacturers, to securely program integrated circuits and bring their devices to life. Semi Supplier OEM Programming Center Final Assembly Post Product
Slide 7: Serving Customers Globally in Growing Markets
Serving Customers Globally in Growing Markets • The largest programming company in the world, 2-3 times larger than the next programming company • Trusted supplier to 8 out of the top 9 and 18 of the top 20 automotive electronics suppliers • Providing mission critical medical applications for Class
Slide 8: Market Leading Technology
Market Leading Technology Industry Leading Products History of Innovation Over 35 Industry Awards Data I/O’s products are viewed as the “gold Automated Handlers standard” for advanced programming Service Excellence Award for equipment, IP management and security World-Class Device solutions Programm
Slide 9: Market Outlook
Bringin g De vices to Life Market Outlook
Slide 10: Analysts Predict Strong Growth in Automotive Semiconductor Content, Led by Electrification
Analysts Predict Strong Growth in Automotive Semiconductor Content, Led by Electrification Growth in Global Semiconductor Market Total Automotive Semiconductor Forecast Value by Vertical Market ($ millions) ($ billions) Source: McKinsey & Company report, April 2022 CONFIDENTIAL 10
Slide 11: Automotive Electronics Growth Areas
Automotive Electronics Growth Areas Infotainment/ Electrification ADAS/Autonomous Connectivity Security IVI Driving 2D map / application New powertrain Sensors Vehicle Ridesharing Heads-up display Charging High performance Infrastructure Car sharing infrastructure computing Digital Cluster Cloud Fle
Slide 12: How Data I/O Markets Grow
How Data I/O Markets Grow Market Forces Programming Impact IoT and Automotive Growth Unit Growth • More Semiconductor Content • Devices Get Smaller • Move Towards Automation Products will increase their code size as Bit Growth customers want more features Products will be more secure, creating new A
Slide 13: Automotive Electronics Primary Market Catalysts
Automotive Electronics Primary Market Catalysts Autonomous Driving Electrification of Vehicles (EVs) New Systems Deployed Increase in Memory Size Increase in # and Size of Programmable Silicon Autonomous Driving graphic credit: Synopsis EV graphic credit: KPMG Automotive Semiconductor Market Model C
Slide 14: IoT Growth Across a Number of Markets
IoT Growth Across a Number of Markets CONFIDENTIAL 14
Slide 15: IoT Device Security by SentriX
IoT Device Security by SentriX® Based on Data I/O's award-winning PSV family of products, the SentriX security deployment platform supports hardware-based security for mass-market IoT edge devices and enables OEMs to protect revenue generating business models and secure their supply chain. OEMs requ
Slide 16: OEMs Using Our Technology
OEMs Using Our Technology Smart Lock Company Water Meter OEM Smart locks and the brands of the Heated and chilled water metering OEMs manufacturing them is being mandated in Germany depend on robust security and and requires strong security to low power consumption found in protect revenue and meet
Slide 17: New Partnerships for Growth
New Partnerships for Growth SentriX Deployments Silicon Partners Technology Partners CONFIDENTIAL 17
Slide 18: Billions of Security Enabled Devices
Billions of Security Enabled Devices 2023 Security Market: “Secure” MCUs with 3-4 Billion Units Embedded Secure Elements Standalone Secure Elements AICs, ESEs, TPMs “Traditional” MCUs Smart Card MCUs Total Market: >25 Billion Units Source: ABI Research, Company Estimates CONFIDENTIAL 18
Slide 19: Our Opportunity with SentriX
Our Opportunity with SentriX • The Internet of Things is a huge growth market, with security of supply chain and protection of firmware top of mind • Data I/O and SentriX partners provide a scalable, easy to develop and deploy service for customers of all sizes. Initial applications are the ‘tip of
Slide 20: Financial Overview
Bringin g De vices to Life Financial Overview
Slide 21: Financial Overview Second Quarter 2022 Highlights
Financial Overview Second Quarter 2022 Highlights • Net sales of $4.8 million; bookings of $6.4 million • Quarter-end backlog of $5.8 million • Gross margin as a percentage of sales of 57.8% • Net loss of ($657,000) or ($0.08) per share • Adjusted EBITDA* of ($65,000) • Cash & Equivalents of $10.3 m
Slide 22: Balance Sheet and Capital Structure Overview
Balance Sheet and Capital Structure Overview Balance Sheet Highlights Balance Sheet Strategy At June 30, 2022: • Important to maintain strong balance sheet in a • $10.3 million in cash and cash equivalents cyclical industry, with about 60% of revenues from • No debt capital equipment sales • $15.9 m
Slide 23: Growing Recurring Revenue Mix
Growing Recurring Revenue Mix Capital Equipment Adapters Software, SentriX, Service • Approx. 58% of 2021 sales • Approx. 30% of 2021 sales • Approx. 12% of 2021 sales • Off-line and in-line programming systems • Usually last 3-24 months • Annual Software/Service Contracts • Automated systems cost $
Slide 24: Operations Update
Operations Update Data I/O Shanghai Operations partially re-opened in May and fully re-opened June 1. We are now shipping systems and adapters from Shanghai. We cleared out the systems backlog from the first quarter by the end of June, and in July became fully operational. Data I/O Redmond Operation
Slide 25: Investment Merits: Positioned for Long-Term Growth
Investment Merits: Positioned for Long-Term Growth End market expansion Strong global brand in automotive and Internet with industry-leading of Things products Strong balance sheet and operating leverage NASDAQ: DAIO Experienced management Growth in Global sales, support security deployment and infr
Slide 26: 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 26
Slide 27: Appendix
27 Management Team & Backup Financial Reconciliation Bringin g De vices to Life Appendix
Slide 28: An Experienced Team of Technology Leaders
An Experienced Team of Technology Leaders Anthony Ambrose - President and CEO Anthony Ambrose joined Data I/O in October 2012 as President, CEO and a Board Member. With a passion for product development and new technology, he led product divisions and global engineering teams at Intel and Radisys fo
Slide 29: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation NON-GAAP FINANCIAL MEASURE RECONCILIATION Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (in thousands) Net Income (loss) ($657) ($29) ($2,477) ($362) Interest (income) (1) - (2) (3) Taxes 61 75 519 107 Depreciation and amortization 152 150 2
Slide 30: Adjusted EBITDA Reconciliation – 2014-2021
Adjusted EBITDA Reconciliation – 2014-2021 NON-GAAP FINANCIAL MEASURE RECONCILIATION Twelve Months Ended December 31, (in thousands) 2021 2020 2019 2018 2017 2016 2015 2014 Net Income (loss) ($555) ($3,964) ($1,187) $1,606 $5,449 $1,656 $927 $1,099 Interest (income) expense ($11) ($14) ($53) ($37) (
Slide 31: Income Statement
Income Statement CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (UNAUDITED) Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Net Sales $4,769 $6,733 $9,734 $12,748 Cost of goods sold 2,011 2,896 4,673 5,573 Gross margin 2,758 3,837 5,061 7,175
Slide 32: Balance Sheet
Balance Sheet CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) (UNAUDITED) June 30, December 31, 2022 2021 ASSETS CURRENT ASSETS: Cash and cash equivalents $10,291 $14,190 Trade accounts receivable, net of allowance for doubtful accounts of $83 and $89, respectively 4,165 3,995 Inve