The following is a summary of the Data I/O Corporation (DAIO) Q2 2024 Earnings Call Transcript:
Financial Performance:
Data I/O reported a Q2 2024 revenue of $5.1 million, a decrease of 32% from the previous year.
Gross margin was at 55%, declining from previous year levels primarily due to lower sales volumes, despite marginal improvements over Q1 due to cost controls.
Reported a net loss of $797,000 in Q2 compared to a net income of $300,000 in the second quarter of 2023 largely due to lower revenue and a foreign tax expense.
Business Progress:
Highlighted strong traction in new customer acquisition, adding eight new customers in Q2.
Expressed continuous development in efficiency improvements including AI and machine learning to accelerate such gains.
Discussed operational readiness with existing manufacturing capacity to meet demand for automotive electronics as market conditions improve.
Noted significant achievement with the SentriX security provisioning platform setting a record for units processed.
Opportunities:
Expected to benefit from the shipping of a strong contractual backlog projected for the second half of 2024.
Emphasized opportunities in edge AI applications, particularly in sectors like automotive ADAS, IoT, and smart cities, which are expected to drive future demand.
Pointed to a firm backlog in bookings primarily from the IoT industrial and EMS markets, indicating resilient demand outside the automotive sector.
Projected a potential shift towards recovery in the automotive sector, though timing remains uncertain.
Risks:
Acknowledged current softness and delay in demand particularly from automotive sector in North America with significant impacts on North American revenue.
Mentioned the impact of political and economic conditions potentially delaying capital investments in the automotive industry.
More details: Data I/O IR
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