Data I/O Corporation (DAIO)

[southacresdave]

2nd Q 10Q:

https://www.sec.gov/Archives/edgar/data/351998/000035199817000033/f10q_06302017.htm

Not much in it that is concerning. The only thing to note is that they have like $18M in tax loss carry forwards, however, they have been profitable long enough now that they may need to recognize part of these this year. The language from 1rst Q 10Q to 2nd Q changed. It's something to look for in the 3Q 10Q.

Q1 "Given the uncertainty created by our loss history, as well as the ongoing uncertain economic outlook for our industry as well as capital and geographic spending, we expect to continue to limit the recognition of net deferred tax assets and accounting for uncertain tax positions and maintain the tax valuation allowances."

Q2 "Given the uncertainty created by our past loss history and the cyclical nature of the industry in which we operate, we have limited the recognition of net deferred tax assets and maintain the tax valuation allowances. We expect to further analyze the level of valuation allowance during the second half of 2017 as we get better forecast visibility.