Data I/O announces second quarter results and letter of intent to acquire Reel-Tech Inc.REDMOND Redmond, city (1990 pop. 35,800), King co., W Wash., a suburb of Seattle, on Lake Sammamish; inc. 1912. Its economy centers around computer software (Microsoft Corp. , Wash.--(BUSINESS WIRE)--July 27, 1995--Data I/O (Input/Output) The transfer of data between the CPU and a peripheral device. Every transfer is an output from one device and an input to another. See PC input/output. I/O - Input/Output Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :DAIO DAIO Direkt-Anlage in Österreich (Austrian Discount Broker) DAIO Defense Agencies-Indianapolis Operations ) announced today a 51 percent increase in net income for the second quarter ended June 29, 1995, to $1.2 million compared with net income of $788,000 in the same period of 1994. Earnings per share increased 36 percent to 15 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. in the second quarter of 1995, compared with 11 cents per share in the prior year, as shares outstanding increased 8 percent in the same period. For the first half of 1995, net income increased to $2.3 million, or 30 cents per share, compared with net income of $400,000, or 5 cents per share, in 1994. Results for 1995 were favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. affected by certain tax benefits which improved net income by approximately $220,000, or 3 cents per share, in the second quarter and $410,000, or 5 cents per share, for the first half. Revenues of $16.1 million for the second quarter of 1995 were approximately equal to those in the same period of 1994. Revenues in 1995 were positively impacted by the weaker dollar relative to both the Japanese Yen “Yen” redirects here. For the other use, see Yen (disambiguation). “JPY” redirects here. For the Australian singer with the same moniker, see John Paul Young. and the German Mark, compared to 1994. Revenues in the first half of 1995 from the programmer (1) A hardware device used to customize a programmable logic chip such as a PAL, GAL, EPROM, etc. See PROM programmer. (2) A person who designs the logic for and writes the lines of codes of a computer program. market remained at levels consistent to those in 1994, after declining between 6 percent and 17 percent for the prior two years. Increases in revenues for the company's lower priced programmer offerings for both the engineering and manufacturing marketplace offset declines in its higher-priced programmer offerings. Revenues for design software declined approximately 11 percent in the second quarter of 1995 compared with the same period of 1994. This decline is due to reductions in revenues for the company's older software product offerings. FutureNet, which the company discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: selling in 1995, and ABEL Abel, son of Adam and Eve, in the Bible Abel, in the Bible, son of Adam and Eve, a shepherd, killed by his older brother, Cain; in the Gospel of St. Matthew, mentioned as the first martyr. , combined, declined approximately 31 percent from the prior year. These declines were partially offset by sales of the company's new Synario product line which grew 22 percent over the prior year. Revenues for the Synario product line now compose com·pose v. com·posed, com·pos·ing, com·pos·es v.tr. 1. To make up the constituent parts of; constitute or form: approximately one half of the total design software revenues compared with approximately one third in the second quarter of 1994. Offsetting revenue declines in the design software market, were increased revenues for automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. programming and handling systems. In the second quarter, revenues for such systems were up 9 percent over the year-earlier period while orders increased approximately 12 percent. For the second quarter of 1995, automated programming and handling systems accounted for approximately 26 percent of total revenues, compared with 24 percent in the second quarter of 1994. "During the quarter, we experienced continued demand for automated programming and handling systems, such as our ProMaster 9500, that was actually stronger than is reflected in sales for the period," said Bill Erxleben, president and chief executive officer. "We believe that the investments we have made in this market over the past four years will pay handsome dividends as this product line becomes an increasingly important growth and profitability component of Data I/O." As previously announced, the company shipped its first ProMaster 9500 automated handling system in the first quarter of 1995. These top-of-the-line systems sell for approximately $500,000 per unit. The ProMaster 9500 is designed to handle, program, test, and mark extremely delicate integrated circuits Integrated circuits Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. in a high-volume manufacturing environment. Due to production constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. , the company was unable to ship ProMaster 9500 units in the second quarter. However, it did receive orders for three more units, bringing the total backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. for ProMaster 9500 to four units or approximately $2.1 million. The company is expecting shipments of this product to resume in the third quarter, as production increases. Gross margins for the second quarter remained at approximately the levels recorded in 1994 as improvements due to manufacturing labor and overhead reductions, improved service margins, and the positive currency effects of a weaker dollar were offset by lower product margins. The shift in mix of product revenues from software to hardware and from higher-priced and higher margin programmers This is a list of programmers notable for their contributions to software, either as original author or architect, or for later additions. See also: Game programmer, List of computer scientists to the lower-priced alternatives have lowered the overall product gross margins. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. were down by approximately 2 percent due to declines in selling, general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. which offset increases in research and development expenditures. "Our dual programs of controlling operating expenses while emphasizing our new product lines enabled us to meet our profitability goals for the quarter," said Erxleben. "We intend to continue our investment in new product development as we expand our product lines, with emphasis on the manufacturing market, over the next several years." The company also announced the signing of an agreement in principal to purchase Reel-Tech Inc. of Indianapolis. Reel-Tech designs and manufacturers handling equipment primarily for use by semiconductor companies in their manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. . Revenues for Reel-Tech in 1994, were approximately $2.0 million. For the last year, Reel-Tech has been Data I/O's partner for the development and manufacture of handling equipment for the ProMaster 9500. "The two companies have worked together extremely well over the last year in bringing the ProMaster 9500 to market in a very short time frame and for a fraction of the cost of prior Data I/O product development projects," said Erxleben. "The materials handling Materials handling The loading, moving, and unloading of materials. The hundreds of different ways of handling materials are generally classified according to the type of equipment used. and marketing technology developed by Reel-Tech for use in semiconductor manufacturing is very complementary to that used in programming applications for commercial electronics manufacturing This article presents a typical manufacturing process of an electronic assembly. Component manufacturing Components such as resistors, capacitors and integrated circuits are generally made by specialized contractors. where Data I/O markets its automated programming and handling systems. The synergy The enhanced result of two or more people, groups or organizations working together. In other words, one and one equals three! It comes from the Greek "synergia," which means joint work and cooperative action. created by combining Reel-Tech and Data I/O should result in more efficient use of development expenditures and will allow Data I/O to leverage its close relationship with semiconductor companies by providing sales opportunities to their manufacturing operations, opening an entirely new marketplace to us." Data I/O expects to complete due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. , execute a definitive purchase agreement, and close this transaction in the third quarter of 1995. The company is currently investigating the potential of a charge to earnings in the third quarter related to this acquisition. Data I/O Corp. is a leading supplier of design and programming systems for users of programmable ICs See PLD. . Its products include electronic design automation software, IC programmers, automated handling systems used in manufacturing and PC card drives. The company has sales and service offices worldwide. -0-
Data I/O Corp.
Comparative Statements of Earnings
(in thousands except per share data)
Second Quarter
6/29/95 6/30/94 Percent
Change
Net sales $16,126 $16,131 0.0% Gross margin 8,803 8,772 0.4% Gross margin as percent of sales 54.6% 54.4% 0.2% Operating expenses: Research & development 2,397 2,246 6.7% Selling, general and administrative 4,967 5,284 -6.0% Operating income 1,439 1,242 15.9% Non-operating (income) expense: Interest, net (31) 47 Foreign currency exchange (1) 7 Income before taxes 1,471 1,188 23.8% Income tax expense 282 400 -29.5% Net income $1,189 $ 788 50.9% Earnings per share: Net income 15 cents 11 cents Weighted average common shares outstanding 7,930 7,360
Six Months Ended
6/29/95 6/30/94 Percent
Change
Net sales $32,334 $30,535 5.9% Gross margin 17,640 15,788 11.7% Gross margin as percent of sales 54.6% 51.7% 2.9% Operating expenses: Research & development 4,730 4,448 6.3% Selling, general and administrative 10,072 10,427 -3.4% Operating income 2,838 913 210.8% Non-operating (income) expense: Interest, net (68) 106 Foreign currency exchange 1 6 -83.3% Income before taxes 2,905 801 262.7% Income tax expense 575 412 39.6% Net income $2,330 $ 389 499.0% Earnings per share: Net income 30 cents 5 cents Weighted average common shares outstanding 7,875 7,347
Condensed Balance Sheet
(in thousands)
June 29, 1995 Dec. 29, 1994
Cash and cash equivalents $ 8,546 $ 7,279
Accounts receivable, net 12,425 10,145
Inventories 7,893 6,937
Current deferred tax asset and other assets 1,815 2,489
Land, building and equipment 10,413 10,737
Land held for resale 2,058 2,006
Other long-term assets 3,483 3,894
Total assets $ 46,633 $ 43,487
Current liabilities, excluding current
Portion of funded debt $ 16,088 $ 16,372
Total funded debt 2,638 1,940
Long-term deferred income tax 448 471
Other long-term payables 426 361
Shareholders' equity 27,033 24,343
Total liabilities and
shareholders' equity $ 46,633 $ 43,487
CONTACT: Data I/O Corp., Redmond, Wash. Steven M. Gordon, 206/881-6444, Ext. 2224 |
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