Data I/O Corporation · NASDAQ:DAIO
Data I/O — Investor Presentation (August 2012)
25 slides from Data I/O's investor presentation, Aug 21, 2012
Slide 1: Joel Hatlen, Vice President & CFO, August 21, 2012
Joel Hatlen, Vice President & CFO August 21, 2012 1
Slide 2: Forward-looking statements
“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 earnings release as
Slide 3: Core Focus Areas and Financial Overview
Core Focus Flash Memory and Microcontroller programming for Areas electronics manufacturing Key Markets Wireless, Automotive, Consumer, and Industrial Electronics Presence Global, HQ in Redmond, WA with facilities in Germany and China Personnel 100 employees @ 12/31/11 with 17 in Germany and 26 in C
Slide 4: What we do – solutions for programming semiconductor devices
What we do – solutions for programming semiconductor devices Device Programming In‐System Programming Device Circuit Board Product Level Level Level Automatic Test End of Line Equipment Programming DAIO’s Factory Integration Software (FIS) Customer’s Manufacturing Execution Software (MES)
Slide 5: DAIO's world-class customers
DAIO’s world‐class customers Automotive Consumer & Wireless Industrial btv holding
Slide 6: The majority of the high volume production lines are in Asia
The majority of the high volume production lines are in Asia More than half the production lines in Asia are in China FLXHD is targeted at volume programming of eMMC devices in Asia Data I/O China is a key part of our strategy for Asia Electronics (PCB) Data I/O’s Asian focus assembly plants
Slide 7: Employment by region; Employment in China
Employment by region Employment in China Note: sales function was outsourced in 2007 to distributors 7
Slide 8: Markets Growth Drivers
Markets Growth Drivers Wireless Smartphone growth is accelerating driven by Apple and Android handsets Consumer Tablet computers and eReaders provided by Apple, HTC, RIM, Nokia, Toshiba, Huawei, Amazon, Samsung, Barnes & Noble and Motorola consume large quantities of Flash Automotive Electronics is
Slide 9: Sales by Region; Sales by Category
Sales by Region Sales by Category 9
Slide 10: *Does not include sales of FlashPak our manual programmer used widely throughout Asia
*Does not include sales of FlashPak our manual programmer used widely throughout Asia 10
Slide 11: *Source: Advance Durable Goods – computers & electronic products component
11 *Source: Advance Durable Goods – computers & electronic products component
Slide 12: Quarterly orders, revenue and income
Q1 Q2 Q3 Q4 2011 Q1’12 Q2’12 Orders $6,098 $7,257 $7,061 $5,128 $25,544 $4,241 $5,189 Revenue 7,043 6,849 7,051 5,723 26,666 3,679 $5,360 Gross 59.1% 58.5% 55.9% 54.5% 57.1% 52.8% 54.9% Margin R&D 1,352 1,276 1,482 1,360 5,470 1,392 1,427 SG&A 2,172 2,215 2,101 1,816 8,304 2,250 1,984 Operating 3,52
Slide 13: Cash, assets and equity by quarter
Q1’1 Q2’11 Q3’11 Q4’11 Q1’12 Q2’12 1 Cash & securities $19.0 $17.0 $18.4 $18.1 $12.3 $11.0 Acct. receivable 5.5 5.3 4.8 4.4 1.9 3.6 Inventory 3.5 3.9 3.8 4.0 4.5 4.6 Fixed assets 1.2 1.3 1.2 1.5 1.4 1.3 Other 0.6 3.6 3.4 3.3 3.2 3.1 Total assets $29.8 $31.1 $31.6 $31.3 $23.3 $23.6 Current liabilitie
Slide 14: Accomplishments and Impact
Accomplishment Impact Focused on eMMC devices used in Drove sales in Asia to a new record in 2011 Smartphones, tablets, & e-readers Introduced Super-boost for Drove adoption of FlashPak and FLX for FlashCore III eMMC applications – key to the above Basis of new architecture for next generation progr
Slide 15: Highest levels of Quality and Process Control
Highest levels of Quality and Process Control Configurable for multiple SMT machines Comes with Factory Integration Software 15
Slide 16: RoadRunner3 ensures quality with Factory Integration Software
RoadRunner3 ensures quality with Factory Integration Software (FIS) Factory Integration IP Management One RoadRunner3 pte Quality AUTOMOTIVE WIRELESS CONSUMER INDUSTRIAL > ROADRUNNER? \ by “4 6, ) oh Pky 99 65 x DA ae Ae ORK ~ - . (Cae 2 LD Loy . 4 . Y < . ‘ J y y a ° MEDICAL EMS
Slide 17: Factory Integration Software benefits
Reduces the chance of operator error ◦ Automates job selection and download ◦ Avoids the risk of scrap and rework Ensures traceability to industry standards Provides management data for decision- making ◦ Tracks yield ◦ Archives programming results and data records Improves productivity thro
Slide 18: Algorithms and applications are hardware independent
Algorithms and x86 applications are hardware independent Algorithms and applications can be XEM6110-LX45 ported to any hardware configuration System descriptions define hardware Or any FPGA-board configurations Algorithms and applications are reusable Hardware independent Hardware-specific a
Slide 19: Azido benefits and development use
Used in development of Data I/O’s next generation programmer architecture Azido benefits demonstrated at Field- Programmable Custom Computing Machine (FCCM) symposium in July in Toronto by Virginia Tech ◦ Attended by leading RC researchers from Microsoft Research, Agilent, Cypress, Rochester Ins
Slide 20: FLXHD duplicates up to 32GB eMMC and 64GB SD
Duplicates up to 32GB eMMC and 64GB SD Provides 40 duplication sites for high throughput Speeds to 22MB/s A very attractive price/performance ratio ~30% below competitive offerings Key features 20
Slide 21: 70% of smartphones expected to use eMMC by end of 2012
70% of Smartphones are expected to use eMMC by the end of 2012 21
Slide 22: Flash memory shipments and programming demand
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Slide 23: Outlook from business leaders in Asia
The hope of business leaders in Asia is that the new products to be launched in the fall combined with the iPhone5 and Windows8 will drive an overall upturn. The CEO of Micron said last week, “I’m quite optimistic the first half of next year can be significantly stronger for NAND. “It’s tougher to
Slide 24: Electronics and semiconductor forecast
Q4’11 Q1’12 Q2’12 Q3’12 Q4’12 2011 2012 2013 Electronics $471.9 $451.2 $447.6 $467.8 $507.6 $1,834 $1,874 $2028 Production, $B Sequential change -4.4% -0.8% 4.5% 8.5% 2.2% 8.2% Semiconductor $60.6 $58.4 $61.4 $66.1 $67.2 $252.4 $253.1 $277.9 Sales, $B Sequential change -3.7% 5.2% 7.6% 1.6% 0.3% 9.8%
Slide 25: Visibility is still limited, but Q3 is generally our strongest quarter
Visibility is still limited, but Q3 is generally our strongest quarter. JP Morgan reported August 8th that they were turning positive on the tech sector after “a cautious/bearish stance since March.” ◦ China’s fourth quarter outlook has been raised for the first time in six months. ◦ They see a