DATA I/O CORP Q4 FY2024 earnings call

• Bill Wentworth discussed consultative sales approach, trimming executive team, using AI to reduce operating time, and focus on building algorithm library. - Gerald Ng highlighted financial performance, gross margin, operating expenses, balance sheet with strong cash position, no debt, and focus on cash optimization between subsidiaries.

Fourth quarter revenue was $5.2 million, down 25% from prior period. 2024 sales were $21.8 million, down 22% from 2023. Automotive electronics represented 59% of 2024 bookings (down from 63% in 2023). Asia revenue grew 14% in 2024. Reoccurring revenue (adapters and services) remained steady at 50% of full-year revenue. Order backlog was $3.5 million as of December 31, up $700,000 from start of year. Gross margin for fourth quarter was 52% and full year was 53%, down from 58% in 2023.

• Team and channel partners focused on driving sales improvement with new go-to-market and product strategies. - Improved cost structure expected to aid future business investments and mitigate supply chain uncertainties.

• Uncertainties from global and geopolitical events, international trade regulations, order levels, automotive and semiconductor industry activity, market acceptance of new products, economic conditions, parts shortages, and competitor activities.

Q: David Marsh asked about nonrecurring expenses and future SG&A/R&D.

A: Gerald Ng said one-time expenses in Q4 should be nonrecurring in 2025 but they'll continue driving efficiencies.

Q: Igor Novyartsev asked about tariffs and product manufacturing.

A: Gerald Ng and Bill Wentworth discussed mitigating tariffs, plans to move adapter manufacturing if needed, and resiliency built during COVID.

Q: George Marema asked about sequential lift off in revenue.

A: Bill Wentworth talked about consultative sales approach rollout and acceleration of traction.

Q: David Cannon asked about OpEx and orders.

A: Gerald Ng discussed OpEx run rate and Bill Wentworth mentioned improved signs in orders.

Q: Jeff McCaffrey asked about TAM expansion and political end game.

A: Bill Wentworth and Gerald Ng discussed service providers' end markets and impact of political and tariff uncertainties