2023 Revenue Growth of 16%; Bookings Momentum in Fourth Quarter;
Most New Customer Wins in 6 Years
Company Returns to Profitability on Higher Sales, Margin and Efficiency Improvements
Fourth Quarter 2023 Highlights
-
Net sales of
$6.9 million ; bookings of$7.2 million -
Quarter-end backlog of
$2.8 million - Gross margin as a percentage of sales of 58.0%
-
Net income of
$144,000 or$0.02 per diluted share -
Adjusted EBITDA* of
$514,000 -
Cash & Equivalents of
$12.3 million ; no debt
Full Year 2023 Highlights
-
Net sales of
$28.1 million ; bookings of$25.8 million - Gross margin as a percentage of sales of 57.7%
-
Net income of
$486,000 or$0.05 per diluted share -
Adjusted EBITDA of
$2.3 million -
Automotive Electronics represented 63% of bookings for 2023 - SentriX® software and pay-per-use revenues increased 150% from 2022
- Deployment of over 485 PSV systems worldwide
- 23 new customer wins
*Adjusted EBITDA is a non-GAAP financial measure. A reconciliation is provided in the tables of this press release.
Management Comments
Commenting on the fiscal year ended
“Automotive and industrial automation continue to represent the largest, fastest growing and most attractive market segments for our programming technologies. Demonstrating our leadership position in the markets we serve, we had over 23 new customer wins during 2023 worldwide and across all segments. Our sales funnel has significantly expanded with customers interested in our advanced programming technologies. We had strong growth in Systems as well as Adapters and Software/Services. We had excellent growth in the
“In 2023, we bolstered our leadership with the appointment of
“Our focus now is on continued growth from the Automotive, Industrial and Programming Center markets worldwide combined with tighter spending controls, process efficiencies and operating leverage to deliver strong bottom-line growth. We are excited by our outlook for 2024.”
Financial Results
Net sales in the fourth quarter of 2023 were
Fourth quarter 2023 bookings were
Gross margin as a percentage of sales was 58.0% in the fourth quarter of 2023, as compared to 55.5% in the prior year period. Full year gross margin improvement was similar at 57.7% for 2023 compared to 54.5% for 2022. The full year increase in gross margin as a percentage of sales primarily reflects higher sales volume, material cost reductions, and operational efficiency improvements.
Operating expenses for the fourth quarter of 2023 were
Net income in the fourth quarter of 2023 was
Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), which excludes equity compensation, was
The Company’s balance sheet remained strong with cash at the end of the fourth quarter of 2023 at
Financial Outlook for 2024
Based on continued strength amid a stable global operating environment, the Company is providing its financial outlook for 2024.
Conference Call Information
A conference call discussing financial results for the fourth quarter ended
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Forward Looking Statement and Non-GAAP financial measures
Statements in this news release concerning economic outlook, expected revenue, expected margins, expected savings, expected results, expected expenses, orders, deliveries, backlog and financial positions, semiconductor chip shortages, supply chain expectations, as well as any other statement that may be construed as a prediction of future performance or events are forward-looking statements which 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.
Forward-looking statement disclaimers also apply to the demand for the Company’s products and the impact from geopolitical conditions including any related international trade restrictions. These factors include uncertainties as to the ability to record revenues based upon the timing of product deliveries, shipping availability, installations and acceptance, accrual of expenses, coronavirus related business interruptions, changes in economic conditions, part shortages and other risks including those described in the Company’s filings on Forms 10-K and 10-Q with the
Non-GAAP financial measures, such as EBITDA and Adjusted EBITDA, excluding equity compensation, should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding the Company’s results and facilitate the comparison of results.
- tables follow -
|
||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
(in thousands, except per share amounts) |
||||||||
(UNAUDITED) |
||||||||
Three Months Ended
|
Twelve Months Ended
|
|||||||
2023 |
2022 |
2023 |
2022 |
|||||
|
|
|
|
|
||||
Cost of goods sold |
2,883 |
3,233 |
11,878 |
11,007 |
||||
Gross margin |
3,991 |
4,038 |
16,186 |
13,210 |
||||
Operating expenses: |
||||||||
Research and development |
1,602 |
1,478 |
6,524 |
6,083 |
||||
Selling, general and administrative |
2,211 |
1,933 |
9,214 |
7,876 |
||||
Total operating expenses |
3,813 |
3,411 |
15,738 |
13,959 |
||||
Operating income (loss) |
178 |
627 |
448 |
(749) |
||||
Non-operating income (loss): |
||||||||
Interest income |
65 |
23 |
190 |
34 |
||||
Gain on sale of assets |
- |
(1) |
- |
57 |
||||
Foreign currency transaction gain (loss) |
(65) |
(156) |
42 |
221 |
||||
Total non-operating income (loss) |
- |
(134) |
232 |
312 |
||||
Income (loss) before income taxes |
178 |
493 |
680 |
(437) |
||||
Income tax (expense) benefit |
(34) |
17 |
(194) |
(683) |
||||
Net income (loss) |
|
|
|
( |
||||
Basic earnings (loss) per share |
|
|
|
( |
||||
Diluted earnings (loss) per share |
|
|
|
( |
||||
Weighted-average basic shares |
9,021 |
8,816 |
8,941 |
8,741 |
||||
Weighted-average diluted shares |
9,096 |
8,942 |
9,073 |
8,741 |
|
|||
CONSOLIDATED BALANCE SHEETS |
|||
(in thousands, except share data) |
|||
(UNAUDITED) |
|||
|
|
||
ASSETS |
|||
CURRENT ASSETS: |
|||
Cash and cash equivalents |
|
|
|
Trade accounts receivable, net of allowance for |
|||
doubtful accounts of |
5,707 |
4,992 |
|
Inventories |
5,875 |
6,751 |
|
Other current assets |
690 |
645 |
|
TOTAL CURRENT ASSETS |
24,613 |
23,898 |
|
Property, plant and equipment – net |
1,359 |
1,072 |
|
Other assets |
1,429 |
2,195 |
|
TOTAL ASSETS |
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||
CURRENT LIABILITIES: |
|||
Accounts payable |
|
|
|
Accrued compensation |
2,003 |
1,670 |
|
Deferred revenue |
1,362 |
1,575 |
|
Other accrued liabilities |
1,438 |
1,596 |
|
Income taxes payable |
113 |
112 |
|
TOTAL CURRENT LIABILITIES |
6,188 |
6,319 |
|
Operating lease liabilities |
702 |
1,500 |
|
Long-term other payables |
192 |
237 |
|
COMMITMENTS |
- |
- |
|
STOCKHOLDERS’ EQUITY |
|||
Preferred stock - |
|||
Authorized, 5,000,000 shares, including |
|||
200,000 shares of Series A Junior Participating |
|||
Issued and outstanding, none |
- |
- |
|
Common stock, at stated value - |
|||
Authorized, 30,000,000 shares |
|||
Issued and outstanding, 9,020,819 shares as of |
|||
2023 and 8,816,381 shares as of |
22,731 |
21,897 |
|
Accumulated earnings (deficit) |
(2,645) |
(3,131) |
|
Accumulated other comprehensive income |
233 |
343 |
|
TOTAL STOCKHOLDERS’ EQUITY |
20,319 |
19,109 |
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||||||
NON-GAAP FINANCIAL MEASURE RECONCILIATION |
||||||||
Three Months Ended
|
Twelve Months Ended
|
|||||||
2023 |
2022 |
2023 |
2022 |
|||||
(in thousands) |
||||||||
Net Income (loss) |
|
|
|
( |
||||
Interest (income) |
(65) |
(23) |
(190) |
(34) |
||||
Taxes |
34 |
(17) |
194 |
683 |
||||
Depreciation and amortization |
140 |
120 |
608 |
560 |
||||
EBITDA earnings |
|
|
|
|
||||
Equity compensation |
261 |
241 |
1,190 |
1,176 |
||||
|
|
|
|
|||||
Adjusted EBITDA, excluding equity compensation |
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240222119777/en/
Vice President and CFO
Investor-Relations@dataio.com
(512) 551-9296
jdarrow@darrowir.com
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