Data I/o Corporation · NASDAQ:DAIO
Data I/o — Investor Presentation (June 2023)
30 slides from Data I/o's investor presentation, June 2023
Slide 1: Bringing Devices to Life
Bringing Devices to Life Nasdaq: DAIO
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: Investment in DAIO
Investment in DAIO • Publicly traded pure play targeting the rapidly growing automotive electronics and IoT/industrial/factory automation markets • High operating leverage, $20M in NOLs and no debt -- $1.32 per share in cash • Optionality with SentriX® security deployment; multiple ways of software
Slide 4: Data I/O at a Glance
Data I/O at a Glance Founded in Patents ISO 9001:2015 Global Service 1972 Certifications & Support What We Do We enable global automotive and industrial electronics manufacturing Solutions We deliver Programming Equipment, Consumables and Services for Global Manufacturers of Electronic Systems 100 >
Slide 5: Supporting the Secure Digital World
Supporting the Secure Digital World Data I/O’s programming systems are used by the world’s leading manufacturers to securely program chips and bring their devices to life. Semi Supplier OEM Programming Center Final Assembly Post Production Develop Manufacture: OEMs, Contract Manufacturers, Programmi
Slide 6: Company Snapshot
Company Snapshot Recent Achievements and Trends Company Snapshot (1)(2) • Global Leader in programming revenue. Over 450 PSV systems sold since NASDAQ: DAIO inception in 2013 representing over 1.5 billion units/year capacity in the installed base Headquarters: Redmond, WA • Strong momentum in Automo
Slide 7: Market Outlook
Bringin g De vices to Life Market Outlook
Slide 8: Serving Customers Globally in Growing Markets
Serving Customers Globally in Growing Markets • The largest programming company in the world, 2-3 times larger than the next programming company • Trusted supplier to 18 of the top 20 automotive electronics suppliers • 20 or more new customers for 2 consecutive years • Providing mission critical med
Slide 9: Analysts Predict a Tripling of Automotive Silicon Content in 10 years
Analysts Predict a Tripling of Automotive Silicon Content in 10 years Growth in Global Semiconductor Market Total Automotive Semiconductor Forecast Value by Vertical Market by Application ($ billions) Source: McKinsey & Company report, April 2022 CONFIDENTIAL 9
Slide 10: 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 11: IoT Growth Across a Number of Markets
IoT Growth Across a Number of Markets CONFIDENTIAL 11
Slide 12: 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 12
Slide 13: 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 14: OEMs Using Our SentriX Technology
OEMs Using Our SentriX® 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
Slide 15: Global Deployment
Global Deployment SentriX Service Providers* Silicon Partners Technology Partners *Announced deployments CONFIDENTIAL 15
Slide 16: 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 17: Financial Overview
Bringin g De vices to Life Financial Overview
Slide 18: Financial Overview: Q1 2023 Highlights and 2022 Insights
Financial Overview First Quarter 2023 Highlights 2022 Insights • Net sales of $7.2 million; bookings of $5.7 million • Net sales up 11% in 2H22 from prior year period; 4Q22 up 14% from 4Q21 • Quarter-end backlog of $3.2 million • FX reduced revenues in 2022 by est. $1M • Gross margin as a percentage
Slide 19: Financial Outlook for 2023
Financial Outlook for 2023 • Positioned for revenue growth, increased net income and cash flow generation in 2023 • Double-digit revenue growth in 2023, consistent with the long-term double-digit semiconductor growth rate in the automotive electronics industry • Gross margins expected to be in the m
Slide 20: Balance Sheet and Capital Structure Overview
Balance Sheet and Capital Structure Overview Balance Sheet Highlights Balance Sheet Strategy At March 31, 2023: • Important to maintain strong balance sheet in a • $11.9 million in cash and cash equivalents cyclical industry, with ~57% of revenues from capital • No debt equipment sales • $18.0 milli
Slide 21: Growing Recurring Revenue Mix
Growing Recurring Revenue Mix Capital Equipment Adapters Software, SentriX, Service • Approx. 57% of 2022 sales • Approx. 30% of 2022 sales • Approx. 13% of 2022 sales • Data programming and security • Usually last 3-24 months • Annual software/service contracts provisioning systems • Device support
Slide 22: Investment Merits: Positioned for Long-Term Growth
Investment Merits: Positioned for Long-Term Growth End market expansion Increasing Recurring in Automotive, IoT and Revenue Industrial Strong balance sheet and operating leverage NASDAQ: DAIO Experienced management Growth in Global sales, support security deployment and infrastructure Strong Booking
Slide 23: 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 23
Slide 24: Backup & Financial Reconciliation
24 Backup & Financial Reconciliation Bringin g De vices to Life Appendix
Slide 25: 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 26: 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 27: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation NON-GAAP FINANCIAL MEASURE RECONCILIATION Three Months Ended March 31, 2023 2022 (in thousands) Net Income (loss) $95 ($1,820) Interest (income) (35) (1) Taxes 35 458 Depreciation and amortization 158 140 EBITDA earnings (loss) $253 ($1,223) Equity compensation 249 291
Slide 28: Adjusted EBITDA Reconciliation – 2014-2022
Adjusted EBITDA Reconciliation – 2014-2022 NON-GAAP FINANCIAL MEASURE RECONCILIATION Twelve Months Ended December 31, (in thousands) 2022 2021 2020 2019 2018 2017 2016 2015 2014 Net Income (loss) ($1,120) ($555) ($3,964) ($1,187) $1,606 $5,449 $1,656 $927 $1,099 Interest (income) expense ($34) ($11)
Slide 29: Income Statement
Income Statement CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (UNAUDITED) Three Months Ended March 31, 2023 2022 Net Sales $7,231 $4,965 Cost of goods sold 2,929 2,662 Gross margin 4,302 2,303 Operating expenses: Research and development 1,625 1,616 Selling, general
Slide 30: Balance Sheet
Balance Sheet CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) (UNAUDITED) March 31, December 31, 2023 2022 ASSETS CURRENT ASSETS: Cash and cash equivalents $11,868 $11,510 Trade accounts receivable, net of allowance for doubtful accounts of $142 and $147, respectively 4,932 4,992 I