Replies to post #6 on Data I/O Corporation (DAIO)

[southacresdave]

Hweb2...Thanks.

Did you see where Intel closed on their $15B buyout of Mobileye (the company that used to be connected with Tesla in their Autopilot driving system? Intel then immediately announced they are spending $250M over the next two years to work on autonomous cars. They intend to have 100 cars on the road soon for testing. Part of this deal is connected to Delphi (a long term customer of DAIO's). Their plan is to have a working Level 4 system by the end of 2019.

http://host.madison.com/business/investment/markets-and-stocks/why-intel-and-mobileye-are-building-self-driving-cars/article_2e7718c1-de52-5b28-b1a7-8b7cc45ea312.html

https://techcrunch.com/2017/05/16/bmw-intel-and-mobileye-bring-delphi-in-on-their-self-driving-platform/

Right now most of DAIO's automotive growth is coming from the increasing use of high-end semiconductors in cars for electronics. This will only mushroom (imo) when some level of autonomous cars start to become functional. The latest estimate puts 10% of all new cars sold in 2021 with this ability. By 2030 it will be 90%. The more the autonomous area grows, the more the infotainment area of vehicles will grow.

It's like connecting the dots....you know where this is all going. Cars/5g communication/data transfer/data collection/Internet of Things are all merging together. It's just a matter of being patient long enough for it to get there.

The other thing you can know for certain is that villainous individuals will try and hack into everything involved with this future. It's why having security will be paramount initially. Even if it isn't at the start, it will be as the ball rolls along. If DAIO can spend the R&D to get ahead of the curve now and lock up the partners, then they have a chance to control a solid market share of an emerging growth area.

I wish I had latched onto this company earlier. I just didn't fully appreciate it at the time.

[littlefish]

Hweb, it's because Q2 was a peak for bookings and I doubt any of us have a highly confident way of predicting how far things might fall before the next potential leg of growth.

I'm keeping an eye on them with the CEO being up front about the likely tail off in orders. I like the open accountability of those comments these days in this market so a tip of the hat to him for getting out front being open.

All IMO only.