REDMOND, WA – Data I/O Corp. posted net sales in the third quarter of $3.8 million, down 41.5% year-over-year. The year-over-year decline was a result of a cyclical downtrend in the industry that began at the end of 2017 and demand impacted by international trade and geopolitical issues in 2019, says the firm.
The company posted a net loss of $844,000, compared with net income of $342,000 in the third quarter of 2018, as well as an operating loss of $1 million, compared to operating income of $404,000 in the same period last year.
Total operating expenses in the third quarter were $3 million, a decrease of 18.9% year-over-year. Research and development expenses of $1.5 million declined from $1.8 million in the prior year period but represented 40% of sales, compared with 28% of sales in the third quarter of 2018.
Orders were $4.3 million, compared to $7 million in the prior-year quarter. Backlog at Sept. 30 was $1.7 million, compared with $1.4 million at June 30.
“Our financial results for the period reflect the market challenges we had experienced throughout the first half of the year, which deteriorated as we entered the third quarter,” said Anthony Ambrose, president and CEO of Data I/O. “The down cycle for semiconductor programming capital equipment that began last year was exacerbated this year by geopolitical issues and international trade challenges, which have wreaked havoc on the electronics supply chain and softened demand for automobiles. In turn, this has reduced near-term capital expenditure purchases by OEMs and programming centers, with particular impact on our primary vertical market of automotive electronics.”
Data I/O had cash of $15.2 million at Sept. 30.