Honored by CIRCUITS ASSEMBLY for innovation, functionality, and impact on manufacturing performance, LumenX2 accelerates new product introduction and future-proofs semiconductor programmingREDMOND, Wash., March 18, 2026 (GLOBE NEWSWIRE) -- Data I/O Corporation (NASDAQ: DAIO), the leading global provider of data provisioning solutions for flash memory, microcontrollers and security ICs, today announced that its next-generation LumenX2 programming platform and Lumen®X2-M4 manual programmer have been awarded a ...

EX-99.0 2 daio_ex990.htm PRESS RELEASE Exhibit 99.0 Data I/O Reports Fourth Quarter 2025 Results A Year of Strategic Progress for New Programming Innovations and Expanding Addressable Market AI-enabled Transformation Leading to Programming Acceleration and Operational Ef iciencies/Expense Reductions; 2026 Business Framework Initiated – Data I/O Returns to Growth Redmond, WA – February 26, 2026 -- Data I/O Corporation (NASDAQ: DAIO), the leading global provider of data programming and security provisioning s ...

Financial Data and Key Metrics Changes - Net sales in Q4 2025 were $4 million, down from $5.2 million in Q4 2024, while full-year net sales were $21.5 million compared to $21.8 million in the prior year [15] - Q4 bookings were $3.1 million, down 25% from $4.1 million in the prior year, and full-year bookings were $18.6 million, down 17% from $22.5 million in 2024 [15] - Gross margins for Q4 were 43%, compared to 52.2% in Q4 2024, and full-year gross margin was 49.3% for 2025 compared to 53.3% in the prior year [17][19] - Net loss for Q4 was $2.5 million or $0.27 per share, compared to a net loss of $1.2 million or $0.13 per share in Q4 2024; full-year net loss was $5 million or $0.53 per share, compared to a net loss of $3.1 million or $0.34 per share in 2024 [19] Business Line Data and Key Metrics Changes - Consumables, adapters, and services represented 58% of total revenue for 2025, while capital equipment sales accounted for 42% [16] - Sales to the automotive electronics sector represented 52% of 2025 bookings, down from 59% in 2024 [17] Market Data and Key Metrics Changes - Bookings and revenues were strongest in Asia, while North America demand remained consistent with the prior year, and Europe experienced a decline [16] - Overall backlog as of December 31, 2025, was $2.3 million, down from $2.7 million at the end of September [17] Company Strategy and Development Direction - The company is transforming to shift from a traditional programming CapEx market to a broader data provisioning market, which is a significantly larger opportunity [9] - The strategy includes modernizing the go-to-market approach, investing in the core platform, strengthening customer relationships, optimizing business operations, and deploying AI company-wide [6][8] - The company is expanding its addressable market by leveraging partnerships, such as the recent collaboration with IAR, to enhance security provisioning capabilities [10][100] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in being ahead of schedule in the transformation plan, with expectations for organic revenue growth in 2026 supported by early demand signals from edge AI infrastructure [14][22] - The company anticipates improved gross margins as revenue increases and cost discipline is maintained, targeting positive operating cash flow by the end of 2026 [22] Other Important Information - The company faced challenges in 2025, including a cyber attack, but managed to recover quickly and continue its transformation efforts [7] - Operating expenses for Q4 were $4.2 million, including one-time expenses related to SEC filings and restructuring, compared to $4 million in Q4 2024 [18] Q&A Session Summary Question: Impact of semiconductor manufacturing reshoring on revenue opportunity - Management noted that while reshoring creates jobs and growth, it does not directly impact revenue; however, there is increased activity and conversations with clients regarding production needs [25][27] Question: AI-assisted software development - Management highlighted advancements in AI that have significantly reduced costs and improved efficiency in software development processes, enabling faster product releases [32][34] Question: Update on M&A pipeline - Management confirmed an active M&A pipeline with several opportunities being explored, emphasizing a disciplined approach to acquisitions [55][60] Question: Customer activity in Q4 - Management indicated that while Q4 had some customer conversations, many were looking to finalize plans in Q1 and Q2, with a significant portion of the pipeline consisting of new opportunities [66][68] Question: Activity in the electric vehicle market - Management affirmed that the automotive sector remains a strong market, with ongoing discussions and new solutions being developed for existing clients [92][94]

Financial Data and Key Metrics Changes - Net sales in Q4 2025 were $4 million, down from $5.2 million in Q4 2024. For the full year, net sales were $21.5 million compared to $21.8 million in the prior year [15] - Q4 bookings were $3.1 million, down 25% from $4.1 million in the prior year, while full year bookings were $18.6 million, down 17% from $22.5 million in 2024 [15] - Gross margins for Q4 were 43%, compared to 52.2% in Q4 2024, and full year gross margin was 49.3% for 2025 compared to 53.3% in the prior year [17] - Net loss for Q4 was $2.5 million or $0.27 per share, compared to a net loss of $1.2 million or $0.13 per share in Q4 2024. For the full year, net loss was $5 million or $0.53 per share, compared to a net loss of $3.1 million or $0.34 per share in 2024 [19] Business Line Data and Key Metrics Changes - Consumables, adapters, and services represented 58% of total revenue for 2025, while capital equipment sales accounted for 42% [16] - Sales to the automotive electronics sector represented 52% of 2025 bookings, down from 59% in 2024 [17] Market Data and Key Metrics Changes - Bookings and revenues were strongest in Asia, while North America demand remained consistent with the prior year, and Europe experienced a decline [16] - Overall backlog as of December 31, 2025, was $2.3 million, down from $2.7 million at the end of September [17] Company Strategy and Development Direction - The company is transforming to shift from a traditional programming CapEx market to a broader data provisioning market, which is a significantly larger opportunity [9] - The strategy includes modernizing the go-to-market approach, investing in the core platform, strengthening customer relationships, optimizing business operations, and deploying AI company-wide [6][8] - The company is actively pursuing M&A opportunities to fill strategic gaps and enhance growth [55][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in being ahead of schedule in the transformation plan, with expectations for organic revenue growth in 2026 supported by early demand signals from Edge AI infrastructure [14][22] - The company anticipates improved gross margins as revenue increases and cost discipline is maintained [22] - Management noted that the build-out of Edge AI is expected to create new revenue opportunities and align with customer demand [13][68] Other Important Information - The company has no debt on the balance sheet and maintains a solid liquidity position with cash at $7.9 million at the end of Q4 2025 [20][21] - Operating expenses for Q4 included one-time expenses related to SEC filings and restructuring, totaling approximately $312,000 [18] Q&A Session Summary Question: Impact of semiconductor manufacturing reshoring on revenue opportunity - Management indicated that while reshoring creates jobs and growth, it does not directly impact revenue. The focus remains on AI build-out and automation [25][26] Question: AI-assisted software development - Management discussed advancements in AI that have significantly reduced costs and improved efficiency in software development processes [29][34] Question: Balance sheet comfort level - Management expressed comfort with the balance sheet, noting a focus on controlling costs and targeting $1 million in run rate reductions [46][48] Question: M&A pipeline update - Management confirmed an active M&A pipeline with several opportunities being explored, emphasizing a disciplined approach to acquisitions [55][62] Question: Customer activity in Q4 - Management noted that while Q4 had some customer conversations, many were looking to finalize plans in Q1 and Q2, with a significant portion of the pipeline being new opportunities [66][68] Question: Activity in the electric vehicle market - Management confirmed that the automotive sector remains a strong market, with ongoing efforts to provide new solutions to existing customers [92][94] Question: Potential for additional partnerships - Management expressed interest in forming more partnerships similar to the agreement with IAR, which is expected to enhance growth opportunities [100][101]

Financial Data and Key Metrics Changes - Net sales in Q4 2025 were $4 million, down from $5.2 million in Q4 2024, while full-year net sales were $21.5 million compared to $21.8 million in the prior year [16][17] - Q4 bookings were $3.1 million, a 25% decrease from $4.1 million in the prior year, and full-year bookings were $18.6 million, down 17% from $22.5 million in 2024 [17] - Gross margins for Q4 were 43%, down from 52.2% in Q4 2024, and full-year gross margin was 49.3%, compared to 53.3% in the prior year [19][20] - Net loss for Q4 was $2.5 million or $0.27 per share, compared to a net loss of $1.2 million or $0.13 per share in Q4 2024; full-year net loss was $5 million or $0.53 per share, compared to a net loss of $3.1 million or $0.34 per share in 2024 [21][22] Business Line Data and Key Metrics Changes - Consumables, adapters, and services accounted for 58% of total revenue in 2025, while capital equipment sales represented 42% [18] - Sales to the automotive electronics sector represented 52% of 2025 bookings, down from 59% in 2024 [19] Market Data and Key Metrics Changes - Bookings and revenues were strongest in Asia, while North America demand remained consistent, and Europe saw a decline [18] - The automotive electronics sector continues to be a significant market, with ongoing interest from customers despite some reassessment of EV capacity [19][96] Company Strategy and Development Direction - The company is transforming to focus on long-term growth, shifting from a traditional programming CapEx market to a broader data provisioning market [10][11] - The strategy includes modernizing go-to-market efforts, investing in core platforms, strengthening customer relationships, and optimizing operations [6][10] - Partnerships, such as the recent agreement with IAR, are seen as crucial for expanding capabilities and market reach [11][102] Management's Comments on Operating Environment and Future Outlook - Management acknowledges headwinds from tariffs and economic conditions but remains confident in the transformation and growth strategy [5][6] - There is optimism about the demand for products related to edge AI and the potential for a multi-year growth cycle in the semiconductor industry [14][15] - The company expects organic revenue growth in 2026, supported by early demand signals and a strong recurring revenue base [23][24] Other Important Information - The company has made significant investments in technology and infrastructure, including a transition to a new ERP system and enhancements in cybersecurity [20][21] - Cash at the end of Q4 was $7.9 million, down from $10.3 million at the end of 2024, reflecting one-time expenses and investments [22][23] Q&A Session Summary Question: Impact of reshoring semiconductor manufacturing on revenue opportunity - Management noted that while reshoring creates jobs and growth, it does not directly impact revenue; however, there is increased activity and conversations with clients regarding production needs [28][29] Question: AI-assisted software development implications - AI advancements are significantly improving efficiency in software development, reducing costs, and enabling faster product releases [34][36] Question: Update on M&A pipeline - The company has an active M&A pipeline with several opportunities being explored, emphasizing disciplined acquisition strategies [58][63] Question: Customer activity in Q4 and outlook - Customer conversations were positive, with many new opportunities emerging, particularly related to edge AI and data provisioning [69][70] Question: Automotive market activity - The automotive sector remains a strong market, with ongoing interest from clients and new solutions being developed to meet their needs [96][97]

Core Insights - Data I/O Corporation is focused on strategic transformation and organic growth, aiming for revenue growth in 2026, driven by increased customer activity and demand in the data provisioning market [5][10]. Financial Performance - For Q4 2025, net sales were $4.0 million, down from $5.2 million in Q4 2024, while full-year net sales were $21.5 million compared to $21.8 million in 2024 [13]. - The company reported a net loss of $2.5 million in Q4 2025, or $0.27 per share, compared to a net loss of $1.2 million, or $0.13 per share, in Q4 2024 [17]. - Full-year net loss for 2025 was $5.0 million, or $0.53 per share, compared to a net loss of $3.1 million, or $0.34 per share, in 2024 [17]. Operational Highlights - Operating expenses for Q4 2025 were $4.2 million, including approximately $312,000 in one-time expenses related to SEC filings and restructuring [17]. - The company achieved a 7% reduction in operating expenses from $26.7 million to $24.8 million since November 2024, with plans for an additional $1 million annual run rate reduction in the first half of 2026 [9]. - Gross margin for Q4 2025 was 43.0%, down from 52.2% in Q4 2024, reflecting lower absorption of labor and overhead costs [16]. Strategic Initiatives - Data I/O is expanding its programming technologies and has announced a collaboration with IAR to enhance security provisioning solutions [7]. - The company is focusing on modernizing its go-to-market strategy, investing in core technology, and deploying AI across all functional departments [9]. - The shift towards servicing the overall data provisioning market represents a significantly larger opportunity than the current market served [6]. Market Outlook - The company anticipates that the build-out of Edge AI will drive a multi-year growth cycle, particularly in sectors such as autonomous transportation and industrial automation [11]. - Customer interest in Edge AI is validating the company's strategic direction and operational capabilities, positioning Data I/O for growth in 2026 and beyond [13].

Core Insights - Data I/O Corporation and IAR are collaborating to create a unified security provisioning solution for the supply chain, enhancing security from embedded design to mass production manufacturing [1][2][4] Industry Context - The partnership addresses the growing need for robust security measures in electronic products due to increasing government regulations and industry standards [2] - Designing security from the beginning is crucial for ensuring firmware integrity and protecting intellectual property [2] Collaboration Details - The collaboration combines IAR's expertise in embedded development tools with Data I/O's semiconductor preprogramming and device provisioning technology [3] - This integration allows for broader device support and faster manufacturing processes without compromising security [3] - The solution is expected to launch in 2026 and is already gaining traction with several customer engagements [4] Benefits for OEMs - The collaboration enables OEMs to extend security provisioning capabilities into the design phase, creating a comprehensive security ecosystem [4] - It allows for greater control over security deployment and consistent security provisioning across global manufacturing sites [7] - The combined algorithm libraries of both companies reduce development time and minimize exposure to threats [7] Company Background - Data I/O has been providing innovative solutions for electronic product design and manufacturing since 1972, serving various industries including automotive and IoT [5] - IAR has been delivering embedded development software and services since 1983, supporting over one million embedded applications across multiple sectors [6]

Core Viewpoint - Data I/O Corporation is set to announce its financial results for Q4 2025 on February 26, 2026, with a conference call scheduled for 2 p.m. Pacific Time/5 p.m. Eastern Time [1] Company Overview - Data I/O Corporation, established in 1972, specializes in data programming and security provisioning solutions for microcontrollers, security ICs, and memory devices [3] - The company provides innovative solutions for various sectors including automotive, Internet-of-Things, medical, wireless, consumer electronics, and industrial controls [3] - Data I/O's offerings help secure the global electronics supply chain and protect IoT device intellectual property from inception to deployment [3] - The company supports OEMs of all sizes in programming and securely provisioning devices from early samples to high-volume production [3] - Data I/O's solutions are backed by a portfolio of patents and a global support network, ensuring customer success [3] Conference Call Details - The financial results will be released after market close on the same day as the conference call [1] - Interested parties can listen to the call by dialing 412-317-5788, with a replay available until March 12, 2026 [2] - The conference call will also be webcast live on the Data I/O Corporation website [2]

Core Viewpoint - Data I/O Corporation, a leading provider of data programming and security provisioning solutions, will participate in The Benchmark Company 14th Annual Discovery One-on-One Investor Conference on December 4, 2025, in New York City [1]. Company Summary - Data I/O Corporation specializes in solutions for microcontrollers, security ICs, and memory devices [1]. - The investor presentation related to the conference will be accessible in the investor relations section of the company's website [1].

Core Insights - Data I/O Corporation is set to unveil its next generation LumenX2 programming platform at the productronica 2025 tradeshow in Munich, Germany, starting November 1 [1] Company Overview - Data I/O Corporation is recognized as the leading global provider of data programming and security provisioning solutions specifically for microcontrollers, security ICs, and memory devices [1]