Data I/o Corp (DAIO) Q3 Revenue Beat
Data I/o Corp (NASDAQ: DAIO) reported Q3 EPS of ($0.09), which may not compare to the analyst estimate of ($0.07). Revenue for the quarter came in at $5.6 million versus the consensus estimate of $4.9 million. Adjusted earnings before interest, taxes, depreciation, amortization excluding equity compensation, (EBITDAS), of $169,000
Commenting on the third quarter ended September 30, 2020, Anthony Ambrose, President and CEO of Data I/O Corporation, said, “We are excited to report strong growth sequentially from the second quarter in revenues and bookings, while year-over-year third quarter revenues increased 56%. Our turnaround in financial performance in the third quarter of 2020 is bolstered by what appears to be a bottoming out of our primary addressable market for automotive electronics in the second quarter.
“We are seeing strength and return to normalcy in China and parts of Asia. EMEA, Americas, and much of Asia still have travel restrictions which are forcing remote meetings with customers and partners. Despite the difficulty of not meeting in person, we were able to win a significant multi-system order in the third quarter for UFS and other programming requirements at a large, multinational tier 1 automotive electronics supplier. Data I/O’s award-winning support, installed base in automotive electronics, and performance for value were key factors in the decision.
“Continued advancements were made for our SentriX platform in the third quarter. Earlier this week, we announced the next generation SentriX Security Deployment as-a-Service including updated hardware and SentriX Product Creator. SentriX Product Creator is the software tool suite used by OEMs, silicon vendors and programming facilities to define and collaborate on security features provisioned on SentriX. The SentriX Product Creator tool supports two security deployment models: fully customizable and SentriX GO pre-configured security profiles. These enhancements greatly simplify the customer experience for deploying common IoT security use cases, such as device authentication, cloud onboarding, establishing and managing identity, and secure boot. We support both custom and SentriX GO models on several semiconductor families, and expect to have more to announce in the fourth quarter.
“We are pleased to announce the addition of Sally Washlow to the Board of Directors, effective October 28, 2020. As a consultant, and former Chief Executive Officer for Cedar Electronics Corporation, Ms. Washlow brings experience to the board as an operating leader in the security and automotive electronics markets. From 2015 to 2017, Ms. Washlow was the CEO of Cedar Electronics Corporation, a supplier of radar detectors, GPS systems, dash cameras and other electronic products, and led the integration of the Cobra and Escort electronics businesses. She currently serves on the Board of Directors of Costar Technologies, Inc. (OTC Markets Group: CSTI), a provider of security solutions and industrial vision products. She will serve on Data I/O’s Nominating and Corporate Governance and Compensation Committees. Ms. Washlow replaces J.D. Delafield, who resigned. We would like to thank Mr. Delafield for his service on the board and wish him well in his future endeavors.
“As I am sure you are aware, 2020 has been an extraordinary year in management. We took sharp and distinct action at the onset of COVID-19, with our temporary measures doing their job in preserving cash while we maintained our capabilities to innovate and deliver as an essential business. As conditions improved in the third quarter, we began to return to more normal operations. By preserving human and financial capital, maintaining our research and development and supporting our customers despite travel restrictions, we believe we are emerging stronger than our competition, better equipped to address the needs of our customers and able to produce operating leverage as the recovery takes hold. This is reflected in the progress shown in our third quarter 2020 financial performance.
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