Data I/O Corporation

Good afternoon, everyone, and welcome to the Data.io second quarter 2025 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 today's event is being recorded. At this time, I'd like to turn the conference call over to Mr. Jordan Darrow, investor relations. Please go ahead, sir.

Thank you, operator, and welcome to the Data.io Corporation's second quarter 2025 financial results conference call. With me today are the company's president and CEO, Bill Wentworth, and interim chief financial officer, Todd Henney. Before we begin, I'd like to remind you that statements made in this conference call concerning future events, results from operations, financial positions, markets, economic conditions, supply chain expectations, estimated impact of tax and other regulatory reform, product releases, new industry participants, 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 also include uncertainties as the impact of global and geopolitical events, international tariff and 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 company may also reference GAAP and non-GAAP financial performance measures, including one-time items, which are introduced intended to provide listeners with a means to better understand the company's performance. The accuracy and completeness of all discussions on this call, including forward-looking statements, should not be unduly relied upon. Data.io is under no duty to update any forward-looking statements. And now I'd like to turn the call over to Bill Wentworth, President and CEO of Data.io.

Thank you, Jordan, for that introduction. I also want to thank the people that have made the call and took out their time to listen to what we're going to talk about today. As you can see, if anybody's seen the report, bookings were up sequentially from Q4-4-1, Q2-4-6, and Q2-5-8, respectively. That's obviously been a focus for us is to get that booking number going in the right direction. It still hasn't settled in the backlog number. I see that in the second half, and I'll talk a little bit more about that and why. The large system order reflects our commitment to our core programming platform, the new universal platform we'll be rolling out between now and the end of the year. And the reason for this investment is the complexity of programming technology, especially in memory, has gotten a lot more difficult. And so the commitment to that is we need to have a platform that can actually handle these new technologies and the complexity that come with them and the changing standards that really almost change almost annually at this point, at least every two years. So this complexity has driven the need to obviously invest in our core platform, which we are doing. And that order reflected that commitment because one of those technologies was UFS flash memory. And both UFS and NVMe, which are two technologies we are focused on, not the only ones, but certainly two of the core because they have the most complexity, have annual KGARs between now and 2030 of 14%. That is twice the semiconductor market. So, obviously, there's a very good reason to be focusing in on these technologies, but also advance our platform in general for the wide range of products that we have to serve and eventually end up on one platform, which is our ultimate goal sometime the end of, you know, 2026, beginning of 2027, which will also help reduce demand. a significant amount of technical debt the company has been carrying from the past. Second half, I can tell you the product mix looks better. We'll get into the margin discussion later and also look forward to any Q&A around that because obviously I'm sure there will be some very pointed questions around margin, which I totally understand and we're well aware of it. We have six major events between September and November. This is all around our new product roadmap, but the products are actually going to be introduced at these shows. These are six of the largest shows in the territory from China to Germany, which is Productronica. India now has Productronica because their tech market has grown significantly. So actually this is the first time we'll be showing at that event with our new products. China has their show in October, and there's a spattering of other events as well. In Mexico, Guadalajara, they have their largest event in September as well. So this should really pick up, significantly increase the lead generation that we'll be doing. So these are big announcements that really drive a lot of value and understanding about where data is going with this technology and its roadmap overall. And these are roadmaps that were not just done on a vacuum. I mean, they were done with sharing data with our semiconductor partners, which we established better. you know, more significant partnerships in the first quarter of this year, which really helps us really look out 10 to 15 years about where we need to be, because the technology is not going to slow down. So we have to be able to accept and be able to have room in our fabric of our platform to be able to absorb these new technologies, which we will have. Everything from a milestone perspective is on track, which is great. It's a little tight. That always happens. But We look really good for these launches for the second half. What else would I like to say? Now it's the product roadmap. Let's see. I think that's it for right now. I will now turn over to Todd Henney for our financial section, but really look forward to the Q&A. We have plenty to talk about, and I'm excited to talk about it. So look forward to your questions.