REDMOND, Wash., Feb. 12, 2026 (GLOBE NEWSWIRE) -- Data I/O Corporation (NASDAQ:DAIO), the leading global provider of data programming and security provisioning solutions for microcontrollers, security ICs and memory devices, today announced that it has scheduled a conference call to discuss financial results for the fourth quarter ended December 31, 2025, on Thursday, February 26, 2026. Management will hold the conference call at 2 p.m. Pacific Time/5 p.m. Eastern Time. Data I/O Corporation will release the ...

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]

Financial Performance - Net sales for the three months ended September 30, 2025, were $5,393,000, a slight decrease of 0.6% compared to $5,423,000 for the same period in 2024[13] - Gross margin for the nine months ended September 30, 2025, was $8,882,000, compared to $8,900,000 for the same period in 2024, reflecting a decrease of 0.2%[13] - Operating loss for the three months ended September 30, 2025, was $(1,393,000), compared to a loss of $(325,000) in the same period of 2024, indicating a significant increase in losses[13] - Net loss for the nine months ended September 30, 2025, was $(2,486,000), compared to $(1,911,000) for the same period in 2024, representing an increase in losses of approximately 30%[19] - The company reported a comprehensive loss of $(1,339,000) for the three months ended September 30, 2025, compared to a loss of $(39,000) in the same period of 2024[14] - The company reported a net loss of $1,362,000 for the three months ended September 30, 2025, compared to a net loss of $307,000 for the same period in 2024[55] - Basic and diluted earnings per share for the third quarter of 2025 were both $(0.15), compared to $(0.03) for the same period in 2024[56] Assets and Liabilities - Total current assets decreased to $19,493,000 as of September 30, 2025, down from $21,157,000 as of December 31, 2024, a decline of about 7.9%[9] - Total liabilities remained stable at $5,071,000 as of September 30, 2025, compared to $5,072,000 as of December 31, 2024[11] - Cash and cash equivalents decreased to $9,664,000 as of September 30, 2025, from $10,326,000 at the end of the previous quarter, a decline of approximately 6.4%[9] - Inventories decreased to $5.800 million as of September 30, 2025, from $6.212 million at December 31, 2024, indicating a reduction of 6.6%[42] - The product warranty liability at September 30, 2025, was $517,000, an increase from $350,000 at December 31, 2024, reflecting a rise of 47.7%[45] - Operating lease liabilities totaled $2.261 million as of September 30, 2025, with total lease commitments amounting to $2.467 million[46] - As of September 30, 2025, the company reported right-of-use assets of $2,164,000, down from $2,704,000 in December 2024[48] - Working capital as of September 30, 2025, was $14.4 million, down $1.6 million from December 31, 2024[86] Revenue and Sales - Equipment sales increased to $2.774 million for the three months ended September 30, 2025, compared to $2.509 million in 2024, representing a growth of 10.6%[34] - The company recognized revenue from software and maintenance of $869,000 for the three months ended September 30, 2025, compared to $909,000 in 2024, a decrease of 4.4%[34] - Net sales for Q3 2025 were $5.4 million, unchanged from Q3 2024, and down from $5.9 million in Q2 2025[73] - International sales accounted for approximately 99% of total net sales in Q3 2025, up from 93% in the prior year[74] - Automated programming systems sales decreased by 14.5% year-over-year to $3.4 million, while non-automated programming systems sales increased by 39.1% to $2.0 million[73] Expenses - Research and development expenses for the three months ended September 30, 2025, were $1,709,000, an increase of 10.7% from $1,544,000 in the same period of 2024[13] - Selling, general and administrative expenses rose to $2,418,000 for the three months ended September 30, 2025, compared to $1,705,000 in the same period of 2024, reflecting an increase of 42%[13] - Research and development expenses increased by 10.7% year-over-year to $1.7 million, representing 31.7% of net sales[79] - Selling, general, and administrative expenses rose by 41.8% year-over-year to $2.4 million, accounting for 44.8% of net sales[81] - Total share-based compensation for the three months ended September 30, 2025, was $115,000, down from $304,000 in the same period of 2024[58] Operational Insights - The company’s manufacturing operations are located in Redmond, Washington, and Shanghai, China, supporting global customer needs[21] - The company continues to evaluate the impact of the One Big Beautiful Bill Act on future periods, particularly regarding research and experimental expenditures[37] - The company has not made any new operating leases during the nine months ended September 30, 2025, maintaining existing commitments[46] - The company has confirmed purchase obligations totaling approximately $554,000,000 to be paid within one year and $480,000,000 to be paid beyond one year as of September 30, 2025[49] - The backlog at September 30, 2025, was $2.7 million, a slight decrease from $2.8 million at the end of the previous quarter[76] - Bookings for Q3 2025 were $5.1 million, down from $5.8 million in Q2 2025 but up from $4.7 million in Q3 2024[75] Challenges and Risks - The company remains cautious due to near-term headwinds affecting the global economy and customer end markets[69] - The company experienced a targeted cyber incident in August 2025, leading to a shutdown of most operating systems globally, which may result in revenue loss and business disruptions[103] - Management identified a material weakness in internal control over financial reporting as of December 31, 2024, related to user access and segregation of duties[96] - Remediation actions have been implemented to strengthen the control environment, including enhancements to system access controls and improved segregation of duties[97] - The company continues to monitor the effectiveness of its internal controls and expects to complete its evaluation as part of the 2025 annual assessment[98] Future Outlook - The company is focused on expanding its market reach beyond the automotive sector and revitalizing activities with semiconductor companies[68] - Management believes that the consolidated financial statements present fairly the company's financial position as of September 30, 2025[99] - The weighted average remaining lease term as of September 30, 2025, is 3.4 years, with a weighted average discount rate of 5%[48] - The company has sufficient working capital to fund operations and capital requirements for the next year, but may need to raise additional capital for significant acquisitions[89] - The company has ongoing initiatives to reduce material and logistic costs and enhance product quality[88]

Financial Performance - Net sales for Q3 2025 were $5.4 million, unchanged from Q3 2024 and down from $5.9 million in Q2 2025[11]. - Net loss for Q3 2025 was $1.36 million, or $0.15 per share, compared to a net loss of $0.31 million, or $0.03 per share, in Q3 2024[14]. - Net income for the three months ended September 30, 2025, was a loss of $1,362,000 compared to a loss of $307,000 for the same period in 2024, representing an increase in loss of 344.57%[29]. - Adjusted EBITDA, excluding equity compensation, for the nine months ended September 30, 2025, was a loss of $1,683,000, compared to a loss of $324,000 for the same period in 2024, indicating a significant increase in loss[29]. Sales and Bookings - Bookings increased by over 7% year-over-year, reaching $5.1 million compared to $4.7 million in Q3 2024[12]. - Automotive electronics accounted for 78% of Q3 2025 bookings, up from 59% for the entire year of 2024[12]. - Backlog as of September 30, 2025, was $2.7 million, slightly down from $2.8 million on June 30, 2025[12]. - Deferred revenue increased to approximately $1.4 million as of September 30, 2025, up from $1.3 million on June 30, 2025[12]. Expenses and Liabilities - Operating expenses rose to $4.1 million in Q3 2025, up from $3.3 million in the same period last year[14]. - Total liabilities remained stable at $5,071,000 in September 2025 compared to $5,072,000 in December 2024[27]. - One-time expenditures related to cybersecurity incidents amounted to $230,000 for the three months ended September 30, 2025[30]. Assets and Equity - Total current assets decreased from $21,157,000 in December 2024 to $19,493,000 in September 2025, a decline of approximately 7.85%[27]. - Cash and cash equivalents decreased from $10,326,000 in December 2024 to $9,664,000 in September 2025, a decrease of 6.39%[27]. - Inventories decreased from $6,212,000 in December 2024 to $5,800,000 in September 2025, a decline of 6.64%[27]. - Total stockholders' equity decreased from $17,626,000 in December 2024 to $16,010,000 in September 2025, a decrease of 9.14%[27]. Awards and Strategic Initiatives - The LumenX-M8 Manual Programming System received two industry awards, reinforcing the company's Unified Programming Platform strategy[6]. - The company engaged a leading boutique investment bank for M&A aligned with its growth strategy[8]. Depreciation and Shares - The company reported a depreciation and amortization expense of $370,000 for the nine months ended September 30, 2025, down from $450,000 in the same period of 2024[29]. - The number of issued and outstanding common shares increased from 9,236,040 as of December 31, 2024, to 9,390,730 as of September 30, 2025[27].

Financial Data and Key Metrics Changes - Net sales for Q3 2025 were $5.4 million, down from $5.9 million in Q2 2025 and flat compared to the prior year period [13] - Gross margin as a percentage of sales was 50.7% in Q3 2025, compared to 49.8% in Q2 and 53.9% in the prior year period [16] - Operating expenses for Q3 2025 were $4.1 million, up from $3.8 million in Q2 2025 and $3.3 million in the prior year period [18] - The reported operating loss for Q3 2025 was $1.393 million, compared to an operating loss of $325,000 in Q3 2024 [19] Business Line Data and Key Metrics Changes - Automotive electronics represented 78% of Q3 2025 bookings, up from 59% for all of 2024 [14] - Consumable adapters and services accounted for 24% of total revenue, providing a base of recurring revenue, while capital equipment sales represented 76% of total revenue [14] Market Data and Key Metrics Changes - Asia, particularly China and Korea, showed strong performance in Q3 2025, especially within the EV sector of automotive electronics [15] - Europe faced pressures with capital equipment spending impacted by tariff and trade uncertainties, as well as EV disruptions [15] - The Americas remained relatively flat, bolstered by systems to be deployed in Mexico [15] Company Strategy and Development Direction - The company aims to diversify beyond the automotive sector and explore new markets and businesses [5] - A new generation of products is being developed, with a focus on automation and addressing gaps in the solutions area [8] - The company is looking to expand into the services market, which is estimated to be a $1 billion-plus opportunity [9] Management's Comments on Operating Environment and Future Outlook - Management noted pressures from global trade and tariff negotiations, but these are now considered tertiary concerns [14] - The company is optimistic about future growth, particularly with new product launches and partnerships in the pipeline [12] - Management expressed confidence in the ability to drive revenue growth through new business units and leveraging core competencies [10] Other Important Information - The company has no debt and maintains a cash balance of approximately $9.7 million as of September 30, 2025 [20] - A thorough review of gross margin enhancement strategies is underway, focusing on pricing modifications and supply chain optimization [17] Q&A Session Summary Question: Future platform growth and core business focus - Management emphasized that the new platform being developed will support long-term growth while maintaining focus on the core business [26] Question: Customer feedback on new technologies - Management reported positive customer feedback and engagement, indicating that the products being developed align with customer needs [35] Question: Sales cycles and critical acclaim at trade shows - Management noted that technology events can drive significant spending, and improvements in yield rates for UFS technology are expected to lead to increased orders [38] Question: Optimism regarding trade partners and tariffs - Management expressed cautious optimism about trade negotiations but acknowledged ongoing challenges in the supply chain [44] Question: Partnerships and acquisitions - Management discussed ongoing conversations with larger test companies and the potential for partnerships that embed their technology [49] Question: EV disruptions and market conditions - Management highlighted that while Asian manufacturers are performing well, European automotive manufacturers are facing significant challenges [60]

Core Insights - Data I/O Corporation has been awarded the 2025 Step-by-Step Excellence Award for its LumenX-M8 Manual Programming System, highlighting its innovation in the field of data programming and security provisioning [1] Company Summary - Data I/O Corporation is recognized as a leading global provider of data programming and security provisioning for microcontrollers, security ICs, and memory devices [1] Industry Context - The award was presented at the NEPCON Asia tradeshow, which took place at the Shenzhen World Exhibition & Convention Center, emphasizing the importance of innovation and advancement within the industry [1]

Core Viewpoint - Data I/O Corporation is set to announce its third quarter financial results for 2025 on October 30, 2025, with a conference call scheduled for the same day to discuss these results [1]. Company Overview - Data I/O Corporation, established in 1972, specializes in data programming and security provisioning solutions for various electronic devices, including those in automotive, IoT, medical, and consumer electronics sectors [3]. - The company provides solutions that secure the global electronics supply chain and protect IoT device intellectual property, enabling customers to program and provision devices from early samples to high-volume production [3]. - Data I/O's offerings are supported by a portfolio of patents and a global network of support professionals, ensuring customer success [3].

Core Insights - Data I/O Corporation's LumenX-M8 Manual Programming System has won the 2025 Mexico Technology Award in the Device Programming category, highlighting its innovation in electronics manufacturing [2][5] - The LumenX-M8 is designed to deliver high-speed, high-performance programming in manual production environments, supporting up to eight programming sites with the same engine used in automated systems [3][4] - The system is aimed at low volume production and new product introduction (NPI) environments, facilitating a seamless transition to volume production while ensuring quality and efficiency [3][4] Company Overview - Data I/O Corporation has been a leader in providing advanced security and data deployment solutions for microcontrollers, security ICs, and memory devices since 1972 [6] - The company focuses on enabling the design and manufacture of electronic products across various industries, including automotive, IoT, medical, and consumer electronics [6] - Data I/O's solutions are backed by a global support network, ensuring reliable and cost-effective product development for its customers [6]

Core Insights - Data I/O Corporation has successfully contained and remediated a ransomware incident that was identified on August 16, 2025, with no impact on customer orders or revenue [2][3] Company Update - The cybersecurity incident originated from a vulnerability in a third-party firewall service provider and has been fully addressed, restoring all global systems [2] - The company incurred approximately $180,000 in expenses related to remediation and investigation efforts for the third quarter ending September 30, 2025, while achieving an annualized reduction of about $300,000 in spending through performance optimization [3] Operational Status - Order flow from bookings to deliveries remains on track, and the company does not anticipate any revenue loss due to the incident [2] - The incident has led to significant improvements in corporate processes and IT systems, enhancing security and scalability [3] Company Background - Data I/O Corporation has been a provider of advanced security and data deployment solutions since 1972, serving various sectors including automotive, IoT, medical, and consumer electronics [4]