Data I/O Corporation

Good afternoon and welcome to the Data.io Third Quarter 2024 Financial Results Conference Call. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Mr. Jordan Darrow, Investor Relations. Please go ahead, sir.

Thank you, Operator, and welcome to the Data.io Corporation Third Quarter 2024 Financial Results Conference Call. With me today are the company's President and CEO, Bill Wentworth, and Chief Financial Officer and Vice President, Jerry Eng. Before we begin, I'd like to remind you that statements made in this conference call concerning future events, results from operations, financial position, markets, economic conditions, supply chain expectations, estimated impact of tax and other regulatory reform, product releases, new industry partnerships, and any other statements 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. These factors include uncertainties as the impact on global and geopolitical events, international trade regulations, order levels for the company, and the activity level of the automotive and semiconductor industry overall, ability to record revenues based on the timing of product deliveries and installations, market acceptance of new products, changes in economic conditions and market demand, part shortages, pricing, and other activities by competitors and other risks, including those described from time to time in the company's filings on Forms 10-K and 10-Q with the Securities and Exchange Commission, press releases, and other communications. The accuracy and completeness of forward-looking statements should not be unduly relied upon. Data.io is under no duty to update any forward-looking statements. And now I would like to turn over the call to Bill Wentworth, President and CEO of Data.io. Thank you very much, Jordan.

It is an honor to be presiding over this call, which is my first with Data.io. While I was appointed to serve on the company's board of directors last year, we announced a managed CEO transition plan in August of this year as president effective September 1st and CEO 1st of October. We'll address our recent financial performance for the third quarter ending September 30th later on this call. It may be helpful in discussing my background experiences that are extremely relevant to the future direction of data I own. I've had 30 years of experience with data programming since a very young age of 16. That began when I worked for my father's distribution company. After getting exposure in the technology industry, I founded Source Electronics, an independent regional programming services provider, with a partner in 1988. At Source, I started my career as VP of Operations and used DataIO's programming solutions extensively through our operations. As Source expanded to become a national independent programming service provider, the semiconductor industry had significant growth in the late 90s and early 2000s, which drove Source to expand into international markets. As CEO of Source... We needed financing to expand into international markets, which led to a strategic investment from HIG Capital in April of 2001. As we grew the business in the early 2000s, we decided to sell the business to Avnet in 2008, providing a significant investor return. Fast forward to present day, I see a big opportunity in an industry that I know very well. We intend to address the industry's current challenges And I'm very excited to lead Data.io, given the market opportunities, and set the stage for the heightened value creation for our customers, business partners, and shareholders. Now let's drill into how we would do this. Since recently joining the company, our team has thoroughly engaged in discovery, assessment, and planning of new strategies to drive significant value to our customers in the markets we serve today. The initial findings are encouraging as we set a new direction to address our existing markets and serve new markets of DataRail's future growth. DataRail intends to partner with its customers, suppliers, and enhance the overall customer experience. The company will be collaborating with our customer base on our vast experience with programming solutions and will develop enhanced business models that could lead to higher margins. Diversification of revenue streams is extremely important, and customer segments will be a very important element as a go-forward strategy. We've identified customers that could lead to additional domains that will diversify our revenue. Currently, data I.O. is dominant in the automotive electronics sector. We will be engaging with the electronic supply chain component suppliers who sell to all markets. This engagement will naturally diversify our revenue streams. Leveraging a strong balance sheet will be able to invest in these strategies to move data I.O. should lead to sustained and sustainable growth. Thanks to the work of Jerry and his finance team since he came on board last year, and as a board of directive member, he's been doing a phenomenal job in controlling expenses and really cementing our capabilities around financial controls. Year-to-date operating expenses are down by more than $1 million, 11% from last year. Our cash balance at the end of third quarter is the highest level in 10 quarters. While revenues and bookings were not where we'd like them to be, as I joined the company, we're optimizing in other areas to be well-positioned to implement our new growth strategies for the future. With that, I'd like to pass it over to Jerry Ng for a closer look at our recent financial performance. Jerry?