Circuits Assembly Online Magazine - Data I/O Extends Q2 Losses on Restructuring Charges

REDMOND, WA -- Data I/O reported second-quarter net sales slipped from a year ago but were up sequentially. The maker of chip programming equipment reported revenue of $5.3 million for the period ended June 30, down 1.9% from a year ago and up 11% from last quarter.

The net loss of $624,000 compares with a net loss of $57,000 in the second quarter 2012. The current quarter's loss includes a restructuring charge of $642,000 to reduce operating costs, address excess space costs, and provide capacity to hire critical resources. Operating income before the restructuring charges was $37,000.

Orders for the quarter were up 30% from last year and 41% sequentially to $6.7 million. The increase was primarily due to customers in the consumer electronics and wireless markets in Asia and the Americas.

“I was pleased with the actions during the quarter to manage the business”, said president and CEO Anthony Ambrose. “Building cash, controlling receivables, and reducing inventories were financial accomplishments during the quarter. The restructuring actions taken since Q2 of last year have saved $1.5 million per year in annualized ongoing expenses, lowered our revenue breakeven point, and provided the headroom to hire critical resources for new product development.”

Separately, the company named Rajeev Gulati vice president and chief technology officer. Gulati was most director of engineering at AMD, responsible for tools and compiler strategy and execution. He has an extensive background in software, systems and applying technology to develop new markets from his work at AMD, Freescale, Metrowerks (Motorola), Apple and IBM.