DAIO going green after dropping to the $7.20's this morning. Can't believe this one was in the high $9's last week ahead of earnings. Then they put out a blowout earnings report. Revenues, earnings & bookings well ahead of what I was expecting. Now the stock is in the low $7's? Like the market said ok sure we see your Q2 revenues up 57%, Q2 net income up 172%, excellent balance sheet with $1.50/share in cash, and Q2 bookings of $10.1M vs. $5.7M last year...but what is this talk on the CC of bookings leveling off at record highs the next couple quarters. We want bookings of $12M next quarter! Wow that's tough.
I'll continue to accumulate as people give away their shares at these prices. Not only is DAIO putting up awesome numbers right now...they're going to get even better in 2018. If the company isn't taken out by a larger player at $10-$15 first. I guess the sellers didn't listen to the CC. There's so many exciting things to look forward to in the coming quarters. A few CC highlights:
"In Q1, we previously announced key partnerships with Renesas, Infineon, EBV and Secure Thingz. In Q2 we contracted to support another secure elements suppliers architecture we can't announce the name publicly at this time but stay tuned."
"As we've discussed before, we view the next nine to 12 months as the market development phase to establish key design wins, relationships in the industry with meaningful revenue to follow later on. Ultimately, our goal is to get a much larger share of the 4 billion unit market that we have in the current microcontroller market."
"In light of our anticipated continued growth and formal introduction of a new and potentially game changing solution in our management secure programming platform, we announce several organizational changes in June to strengthen our management team and position us for growth."
"International sales represented approximately 90% of total sales for both the second quarter of 2017 and 2016. Demand in all regions was robust."
Robert Anderson
My question relates to the second part of your talking Anthony and that was about innovation for the future. And I'm wanting to understand a little bit better the timing on this, when will this research reach the point that you'll be shipping products that have all these security features I suspect you started to, but I don't know that for sure, so maybe you could summarize when this research and development will be completed and you'll start shipping these very secure features.
Anthony Ambrose
Yes, Bob. Thank you for the comment. As we talked about in the prepared remarks, we'll be shipping the products in the second half of this year. As you know I don't like to be too specific on these earnings calls about new products, but we said that clearly it'll start in the second half and will begin with the products that we've announced relationships with and then we'll have an expanded list with again more to stay, when we're ready to announce the products specifically.
"So as we bring the products into the market, we have to work with customers, we have to get qualified, we have to work through their design cycles and that's why we said consistently it's going to take 2017 as a market development years and we'll begin to see meaningful revenue in the nine to 12 months horizon. But we expect that this becomes the way people do products going forward."
"I think we're extremely well positioned in the automotive segment because our product is just better. We've talked about it before, everybody thinks their product is better but we have the data from a very thorough evaluation that was publicly disclosed last year with Bosch. Where they flat out made it clear that our product was better."
"There were some other automotive initiatives in there as well, but most of that goes to MSP. And again, those investments are going to capture what we consider to be a very meaningful opportunity. I haven't quantified it specifically for you in dollar terms, but I used the term meaningful deliberately."
"I think that's probably the biggest driver we see, we're in a secular trend in automotive in our opinion. We think there is a lot of room to run and our customers continue to through Q2 surprise us on the upside."
"On IoT again we quantify it, we're going after $4 billion market unit. We believe that methodology for securing systems has to get adopted otherwise the IoT business model doesn't work and I'm not just talking about securing devices. I'm talking about all the people that want to monetize data. So I think it's a significant business opportunity for us and we wouldn't be investing the way we are, if we didn't think it was a very big opportunity."
Unidentified Analyst
Okay and then the other part of it. I'm going to take you off speaker. The other part of it was, do you believe that your MSP initiative overtime can be equal to or greater in your core business right now? Three to five years down the road.
Anthony Ambrose
Yes, I haven't given a quantitative estimate and I'll be doing so in an upcoming call. so I'm going to hold that one for now, but I'll just say that it's extremely meaningful for us.
AI
