Data I/O Corp (NASDAQ:DAIO) Q4 2018 Earnings Conference Call Transcript

Feb 21, 2019 • 05:00 pm ET

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Data I/O Corp (NASDAQ:DAIO) Q4 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon, and welcome to the Data I/O Corporation Fourth Quarter 2018 Financial Results Conference Call. All participants will be in listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note, this event is being recorded.

I would now like to turn the conference over to Jordan Darrow with Investor Relations. Please go ahead, sir.

Executive
Jordan Darrow

Thank you, and, again, welcome to everyone to the Data I/O Corporation fourth quarter and year-end 2018 financial results conference call. With me today are Anthony Ambrose, President and Chief Executive Officer of Data I/O Corporation, and Joel Hatlen, Vice President, Chief Operating Officer and Chief Financial Officer of Data I/O.

Before we begin, I'd like to remind you that statements made in this conference call concerning future revenues, results from operations, financial position, markets, economic conditions, estimated impact of tax reform, product releases, new industry partnerships and any other statements that may be construed as a prediction of future performance or events are forward-looking statements, which may 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.

These factors include uncertainties as to level of orders, ability to record revenues based upon the timing of product deliveries and installations, market acceptance of new products, changes in economic conditions and market demand, pricing and other activities by competitors and other risks including those described from time to time in the Company's filings on Form 10-K and 10-Q with the Securities and Exchange Commission, press releases and other communications.

The accuracy -- such forward-looking statements should not be unduly relied upon. Data I/O is under no duty to update any of these forward-looking statements.

I would now like to turn the call over to Anthony Ambrose, President and CEO of Data I/O.

Executive
Anthony Ambrose

Thank you very much, Jordan.

I'll start by commenting on 2018's full year results, give a little bit of an outlook on the overall market, what we think about 2019 and then I'll turn it over to Joel for some more detail on specific numbers.

So for the full year in 2018, we had revenues of $29.2 million and about $27 million in bookings. Net income for the year was $1.6 million, representing our fifth consecutive year of annual profitability. Our business continues to focus on automotive electronics with automotive bookings now representing 60% of our orders. We also continue to see growth in our new products. We sold about 240 of our PSV family automated programming systems through the end of 2018.

Our operating model continue to perform very well. Gross margins for the year were 59.4%, growing about 7 points over the past four years.

In our SentriX family, we closed the year with SentriX installed in four sites with 12 industry partners and a growing list of OEM engagements. So overall, a solid 2018.

Now, when we talk about our long-term outlook, I'd like to start with the