Data I/O Announces Preliminary Fourth Quarter and Full Year 2023 Results
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Insights
Examining the preliminary financial results of Data I/O Corporation, several key points stand out. The reported 16% revenue growth for the year is a robust indicator of the company's performance, especially in the context of the microcontroller and security IC industry. This sector is known for its cyclicality and strong sales figures can signal underlying industry health. The automotive electronics market, making up 63% of the company's bookings, is particularly significant given its rapid expansion and increasing reliance on advanced electronic components.
The 23 new customer wins in 2023 may suggest effective market penetration and sales strategies, potentially leading to a more diversified and stable customer base. For investors, this could mean less volatility in earnings and a stronger long-term growth trajectory. With automotive silicon content expected to grow 10-15% annually, Data I/O Corporation seems well-positioned to capitalize on this trend, which could be a favorable sign for the company's future prospects.
From a financial perspective, the advance disclosure of preliminary financial results ahead of the non-deal roadshow and technology conference is a strategic move to garner investor interest. The net sales of $6.8 million for the quarter and $28 million for the year, coupled with bookings of $7.2 million, suggest a healthy order pipeline and operational efficiency. Investors should note, however, that the book-to-bill ratio, which is above 1 for the quarter, indicates more orders were received than could be billed, a sign of potential future revenue growth.
The company's performance should be evaluated against industry peers and market expectations to understand its relative position. The anticipation of detailed financial results and a conference call provides an opportunity for a deeper dive into the company's financial health, including margins, profitability and cash flow, which are critical for assessing the sustainability of the current growth trajectory.
For stakeholders in the automotive sector, Data I/O Corporation's focus on automotive electronics is particularly relevant. The automotive industry is undergoing a transformation with increased electrification, connectivity and automation, leading to a higher silicon content per vehicle. The company's alignment with this trend, as evidenced by the substantial portion of bookings from automotive electronics, positions it to benefit from industry tailwinds.
Analysts' projections of automotive silicon content growth provide a favorable backdrop for the company's future performance. However, it's important to consider factors such as competition, technological advancements and global automotive demand, which could impact the company's ability to maintain or increase its market share in this segment.
Strong Performance Disclosed Ahead of Non-Deal Roadshow with WestPark Capital and the A.G.P. Virtual Technology Conference
2023 Revenue Growth of
Preliminary Fourth Quarter and Full Year 2023 Results
-
Net sales of
$6.8 million $7.2 million -
Net sales of
$28 million - 23 new customer wins in 2023
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Automotive Electronics represented
63% of bookings
Management Comments
Commenting on the preliminary fourth quarter results ended December 31, 2023, Anthony Ambrose, President and CEO of Data I/O Corporation, said, “The Company ended the year on a high note. As we indicated in our remarks in early 2023, we anticipated double digit revenue growth for the year, and we delivered
“We look forward to sharing our exciting story and catalysts for ongoing growth and financial performance improvements with investors. The Company expects to report full financial results and conduct a conference call for the fourth quarter ended December 31, 2023 on February 22, 2024. Details for the conference call to discuss fourth quarter results will be announced on February 8th.”
About Data I/O Corporation
Since 1972, Data I/O has developed innovative solutions to enable the design and manufacture of electronic products for automotive, Internet-of-Things, medical, wireless, consumer electronics, industrial controls and other electronics devices. Today, our customers use Data I/O’s data programming solutions and security deployment platform to secure the global electronics supply chain and protect IoT device intellectual property from point of inception to deployment in the field. OEMs of any size can program and securely provision devices from early samples all the way to high volume production prior to shipping semiconductor devices to a manufacturing line. Data I/O enables customers to reliably, securely, and cost-effectively bring innovative new products to life. These solutions are backed by a portfolio of patents and a global network of Data I/O support and service professionals, ensuring success for our customers. Learn more at dataio.com/Company/Patents.
Forward Looking Statements and Disclaimers
Data I/O’s financial closing procedures for the fourth quarter and year-ended December 31, 2023 are not yet complete. It is possible that the final results may differ from the preliminary results between now and when results are finalized.
Statements in this news release concerning economic outlook, expected revenue, expected margins, expected savings, expected results, expected expenses, orders, deliveries, backlog and financial positions, semiconductor chip shortages, supply chain expectations, as well as any other statement that may be construed as a prediction of future performance or events are forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause actual results to differ materially from those expressed or implied by such statements.
Forward-looking statement disclaimers also apply to the demand for the Company’s products and the impact from geopolitical conditions including any related international trade restrictions. These factors include uncertainties as to the ability to record revenues based upon the timing of product deliveries, shipping availability, installations and acceptance, accrual of expenses, coronavirus related business interruptions, changes in economic conditions, part shortages and other risks including those described in the Company’s filings on Forms 10-K and 10-Q with the Securities and Exchange Commission (SEC), press releases and other communications.
The non-deal roadshow with WestPark Capital, Inc. is intended to support its research coverage of Data I/O. WestPark Capital, a full-service investment bank and brokerage firm, maintains research coverage of Data I/O. For access to this research, please contact WestPark Capital via its website at www.wpcapital.com. The research coverage and non-deal roadshow do not involve any compensation paid by Data I/O to WestPark Capital. Reference made to WestPark Capital and its equity research in connection with this announcement or any opinions, estimates or forecasts regarding Data I/O’s performance made by them are theirs alone and do not represent opinions, forecasts or predictions of Data I/O or its management. Data I/O does not by its reference above or distribution of marketing content in connection with its investor relations activities imply its endorsement of or concurrence with such information, conclusions or recommendations by WestPark Capital or its analysts providing research coverage of the Company.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240129643426/en/
Gerald Ng
Vice President and CFO
Data I/O Corporation
Darrow Associates, Inc.
Jordan Darrow
(512) 551-9296
jdarrow@darrowir.com
Source: Data I/O Corporation
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