Core Insights - Data I/O Corporation has appointed Charles DiBona as Vice President and Chief Financial Officer effective August 11, 2025, with Todd Henne remaining temporarily for a smooth transition [1][3] Group 1: Leadership and Experience - Charles DiBona brings nearly two decades of experience in financial reporting, resource optimization, IT system management, capital markets, and M&A functions [2] - His previous role at Microsoft involved strategy management in the Server and Tools Business, and he has held CFO positions in various technology companies, contributing to market expansion and product enhancement [2] - DiBona holds an MBA from Harvard Business School and an A.B. in Economics from Harvard University, graduating Magna Cum Laude [2] Group 2: Company Vision and Strategy - The President and CEO of Data I/O expressed confidence in DiBona's ability to drive financial strategy and enhance organizational performance to meet financial goals and expand market presence [3] - DiBona expressed enthusiasm about joining Data I/O and aims to build on the company's financial tradition while driving growth [3] Group 3: Compensation and Incentives - DiBona's initial equity compensation includes a grant of 100,000 Restricted Stock Units, vesting annually over three years, as part of his Executive Employment Agreement [4]

[Management Comments](index=1&type=section&id=Management%20Comments) Management reported sequential bookings growth, driven by a major Chinese EV order for UFS 4.0 systems, validating R&D and preparing for future 1TB UFS memory for AI - Delivered the **second consecutive quarter of sequential bookings growth**, following increases in Q1 2025 and Q4 2024[3](index=3&type=chunk) - Received a significant order for 10 PSV automated programming systems, valued at over **$1.4 million**, from a major Chinese EV manufacturing supplier, based on robust support for Universal Flash Storage (UFS) 4.0 technology[3](index=3&type=chunk) - The company focuses on technology leadership for the growing UFS memory market (expected **14% CAGR** over five years) and is preparing for next-generation **1TB UFS memory** for advanced AI applications by 2027[6](index=6&type=chunk) [Second Quarter 2025 Financial Results](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results) Q2 2025 saw net sales of $5.9 million, sequential bookings growth to $5.8 million, a gross margin of 49.8%, and a net loss of $742,000, with a solid $10.0 million cash balance [Revenue, Bookings and Margin](index=1&type=section&id=Revenue%2C%20Bookings%20and%20Margin) Q2 2025 net sales were $5.9 million, bookings reached $5.8 million, and gross margin was 49.8% due to product mix, with automotive electronics contributing 66% of bookings Net Sales and Bookings (in millions) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Sales | $5.9M | $6.2M | $5.1M | | Bookings | $5.8M | $4.6M | $5.6M | - Gross margin was **49.8%** in Q2 2025, compared to **51.6%** in Q1 2025 and **54.5%** in Q2 2024, with the decline driven by product mix and configuration for a large customer order[9](index=9&type=chunk) - Backlog stood at **$2.8 million** and deferred revenue was **$1.3 million** as of June 30, 2025[8](index=8&type=chunk) - Automotive electronics represented **66%** of Q2 2025 bookings, up from **59%** for the full year 2024[7](index=7&type=chunk) [Profitability and Expenses](index=2&type=section&id=Profitability%20and%20Expenses) Q2 2025 operating expenses were $3.8 million, including $480,000 in one-time costs, resulting in a net loss of $742,000 and an Adjusted EBITDA of ($437,000) Profitability and Expense Highlights | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Operating Expenses | $3.8M | $3.6M | $3.3M | | Net Loss | ($742,000) | ($382,000) | ($797,000) | | EPS (loss) | ($0.08) | ($0.04) | ($0.09) | | Adjusted EBITDA | ($437,000) | ($98,000) | $3,000 | - Q2 2025 operating expenses included approximately **$480,000** in one-time expenses for investments and transition requirements[10](index=10&type=chunk) - Excluding one-time expenses, Adjusted EBITDA for Q2 2025 would have been **$43,000**[10](index=10&type=chunk) [Balance Sheet and Liquidity](index=2&type=section&id=Balance%20Sheet%20and%20Liquidity) The company maintained a solid balance sheet with $10.0 million in cash, $15.6 million in net working capital, and no debt as of Q2 2025 - Cash balance was **$10.0 million** as of June 30, 2025[10](index=10&type=chunk) - Net working capital was **$15.6 million** on June 30, 2025[10](index=10&type=chunk) - The Company continues to have **no debt**[10](index=10&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) This section presents unaudited consolidated financial statements for Q2 2025 and 2024, including the Statement of Operations, Balance Sheet, and GAAP to non-GAAP reconciliations [Consolidated Statements of Operations](index=3&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 net sales were $5.95 million, resulting in an operating loss of $844,000 and a net loss of $742,000, or ($0.08) per share Q2 2025 vs Q2 2024 Statement of Operations (in thousands) | Line Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net sales | $5,948 | $5,062 | | Gross margin | $2,960 | $2,757 | | Total operating expenses | $3,804 | $3,323 | | Operating income (loss) | $(844) | $(566) | | Net income (loss) | $(742) | $(797) | | Diluted earnings (loss) per share | $(0.08) | $(0.09) | [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were $24.1 million, with $10.0 million in cash, total liabilities of $6.9 million, and stockholders' equity of $17.2 million Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $9,969 | $10,326 | | Total Current Assets | $20,627 | $21,157 | | Total Assets | $24,117 | $24,970 | | Total Current Liabilities | $5,076 | $5,072 | | Total Stockholders' Equity | $17,246 | $17,626 | [Non-GAAP Financial Measure Reconciliation](index=4&type=section&id=Non-GAAP%20Financial%20Measure%20Reconciliation) Q2 2025 GAAP net loss of $742,000 was reconciled to an Adjusted EBITDA (excluding equity compensation) of ($437,000), which would be $43,000 excluding one-time expenses Q2 2025 GAAP to Non-GAAP Reconciliation (in thousands) | Metric | Amount | | :--- | :--- | | Net Loss (GAAP) | $(742) | | EBITDA | $(687) | | Adjusted EBITDA (excl. equity comp) | $(437) | | One-time expenses/investments | $480 | | Adjusted EBITDA (excl. one-time items) | $43 | [Other Information](index=2&type=section&id=Other%20Information) This section provides investor conference call details, business information, forward-looking statement disclaimers, and clarification on non-GAAP financial measures - A conference call to discuss the financial results was scheduled for July 24, 2025, at 2 p.m. Pacific Time[11](index=11&type=chunk) - The press release contains forward-looking statements and non-GAAP financial measures, with the company stating that non-GAAP measures provide meaningful supplemental information and reconciliations are provided[13](index=13&type=chunk)[15](index=15&type=chunk)

Financial Data and Key Metrics Changes - Net sales for Q2 2025 were $5 million, down from $6.2 million in Q1 2025 but up from $5.1 million in Q2 2024 [11] - Gross margin as a percentage of sales was 49.8% in Q2 2025, compared to 51.6% in Q1 2025 and 54.5% in the prior year period [14] - Operating expenses for Q2 2025 were $3.8 million, up from $3.6 million in Q1 2025 and $3.3 million in the prior year period [17] Business Line Data and Key Metrics Changes - Automotive electronics represented 66% of Q2 2025 bookings, up from 59% for all of 2024 [12] - Consumable adapters and services accounted for 50% of total revenue in Q2 2025, providing a stable base of recurring revenue [12] Market Data and Key Metrics Changes - Asia, particularly China, showed strong performance in the EV sector of automotive electronics, while Europe and The Americas faced pressures from capital equipment spending due to tariff and trade uncertainties [12] - Q2 2025 bookings were $5.8 million, up from $4.6 million in Q1 2025 and $5.6 million in Q2 2024 [13] Company Strategy and Development Direction - The company is focusing on investing in its core programming platform to handle the increasing complexity of programming technology, particularly in memory [5] - A new universal platform is expected to be rolled out by the end of the year, aimed at reducing technical debt and improving product offerings [6] - The company plans to enhance its sales and marketing strategies and expand into new business lines, with a focus on vertical integration [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges due to tariff and trade negotiations but noted that manufacturing operations have not been significantly impacted due to diversified supply chains [15] - The company expects improved performance in the second half of the year, driven by new product launches and increased customer engagement [10][46] Other Important Information - The company has no debt and reported a cash balance of $10 million as of June 30, 2025 [20] - Significant one-time expenses of approximately $480,000 were incurred in Q2 2025, impacting operating income and adjusted EBITDA [19] Q&A Session Summary Question: How does the $480,000 impact the P&L? - The majority of the $480,000 will hit the G&A category, including IT, finance, and HR spending [23][26] Question: What is being done to improve yield rates for UFS Flash? - The company is investing in new bench equipment and has restructured its engineering team to address technology gaps and improve yield rates [32][36] Question: What are the expectations for gross margins moving forward? - The company anticipates a broader mix of products in the second half, which should help improve margins [43][46] Question: How is the company expanding beyond automotive? - The company is focusing on lead generation from upcoming product launches and enhancing existing customer relationships to diversify its customer base [50][54] Question: What is the market opportunity for UFS and NVMe technologies? - The UFS and NVMe markets are expected to grow at a CAGR of 14%, presenting significant opportunities for the company [6][92]

Core Insights - Data I/O Corporation reported a second consecutive quarter of sequential bookings growth, indicating a positive trend in demand for its programming solutions [1][2] - The company received a significant order for automated programming systems from a leading global automotive EV supplier, valued at over $1.4 million, highlighting its competitive edge in supporting UFS 4.0 technology [2][6] - The UFS memory market is projected to grow at a CAGR of 14% over the next five years, presenting substantial opportunities for Data I/O as it prepares for next-generation high-density memory technology [5] Financial Performance - Net sales for Q2 2025 were $5.9 million, a decrease from $6.2 million in Q1 2025 but an increase from $5.1 million in Q2 2024 [6] - Bookings for Q2 2025 reached $5.8 million, up from $4.6 million in Q1 2025 and $5.6 million in Q2 2024, with a backlog of $2.8 million as of June 30, 2025 [7] - Gross margin for Q2 2025 was 49.8%, down from 51.6% in Q1 2025 and 54.5% in the prior year, attributed to a lower margin product mix [8] Operational Highlights - Operating expenses for Q2 2025 were $3.8 million, an increase from $3.6 million in Q1 2025, reflecting ongoing investments in the core programming platform and other operational needs [10] - The company reported a net loss of $742,000 or $0.08 per share for Q2 2025, compared to a net loss of $797,000 or $0.09 per share in the prior year [10] - Cash at the end of Q2 2025 was $10.0 million, slightly down from $10.3 million at the end of 2024, indicating a solid balance sheet despite one-time expenses [10]

Summary of Data I/O (DAIO) Conference Call Company Overview - **Company Name**: Data I/O Corporation - **Industry**: Semiconductor technology and programming solutions - **Founded**: 1972 - **CEO**: Bill Wentworth since October 31, 2024 - **Market Presence**: Significant market share in automotive, IoT, industrial controls, and service providers globally [3][5][6] Core Business and Technology - **Core Function**: Data I/O specializes in embedding data into programmable semiconductor technology, primarily for Fortune 500 companies [5][19] - **Technology Platforms**: - **FlashCore 3** and **Luminex** are the main platforms used for programming and embedding data into silicon [8][11] - Transitioning from the older Luminex platform to a newer version to address UFS flash technology, which is expected to grow at a CAGR of 14% over the next five years [34][35] Market Dynamics - **Automotive Sector**: - Accounts for nearly 60% of revenue, driven by increasing complexity in automotive technology [19][39] - Demand for programmable technology in vehicles is expected to grow due to advancements in autonomous driving and infotainment systems [39] - **Service Provider Network**: - Identified as a significant growth area, potentially twice the size of the automotive market [21] - Focus on global distribution companies and contract manufacturers to expand market reach [22][32] Financial Performance and Strategy - **Current Financial Status**: Approximately $10 million in cash, cash flow neutral, with expectations for growth in the second half of the year [24] - **Gross Margins**: Historically between 52-58%, with potential to reach the low 60s through improved efficiencies and service offerings [30] - **Revenue Diversification**: Plans to diversify revenue streams beyond automotive, including entering the services market, which is larger and offers recurring revenue opportunities [27][50] Product Development and Innovation - **New Product Launches**: - Two new versions of products to be released in September and November 2025, aimed at enhancing capabilities in the engineering community [16][34] - Focus on UFS flash technology to meet growing market demands [34][36] - **Use of AI**: Implementing AI to streamline engineering processes and improve operational efficiencies [25][26] Market Trends and Future Outlook - **Growth Opportunities**: - Anticipated growth in automotive and IoT sectors, with increasing demand for programmable technology [44] - Exploring organic and inorganic growth opportunities, including potential M&A [27][28] - **Service Market Potential**: The independent programming service market is estimated to be worth $200-300 million globally, presenting a significant opportunity for Data I/O [50][51] Conclusion - Data I/O is positioned to leverage its technological advancements and market presence to capture growth in the semiconductor programming industry, with a strategic focus on diversifying revenue streams and enhancing product offerings to meet evolving customer needs [51]

Group 1 - Data I/O Corporation will participate in the Singular Research Summer Solstice Conference on June 18, 2025, with a presentation scheduled for 3:00 PM ET in New York [1] - The company will also present at the iAccess Alpha Virtual Best Ideas Summer Investment Conference on June 24, 2025, at 11:30 AM ET, followed by one-on-one meetings on June 25 [2] - Data I/O has been providing innovative solutions since 1972, focusing on electronic products for various sectors including automotive, IoT, medical, and consumer electronics [3] Group 2 - The company's data provisioning solutions allow OEMs to manage device intellectual property from inception to deployment, ensuring reliable and cost-effective product development [3] - Data I/O's offerings are supported by a portfolio of patents and a global network of support professionals, enhancing customer success [3]

Financial Performance - Data I/O reported net sales of $6.2 million for Q1 2025, a 1.3% increase from $6.1 million in Q1 2024, driven by business recovery and backlog deliveries in the Americas and Europe[87]. - The company experienced a significant increase in U.S. sales, which rose by 234.5% to $756,000, while international sales decreased by 7.7% to $5.42 million, representing 88% of total net sales[86][89]. - Gross margin for Q1 2025 was $3.19 million, accounting for 51.6% of net sales, down from 52.8% in Q1 2024, primarily due to a higher mix of system sales revenue[90]. - New bookings for Q1 2025 were $4.6 million, an increase from $4.1 million in Q4 2024 but a decrease from $8.1 million in Q1 2024, influenced by delays in customer purchase decisions[88]. - The backlog as of March 31, 2025, was $2.9 million, a decrease of $0.6 million from December 31, 2024, with deferred revenue at approximately $1.5 million[88]. Operational Strategy - The company is focusing on diversifying its end markets and enhancing its consultative sales process to drive revenue growth[66]. - Data I/O has implemented a resilient supply chain with dual manufacturing capabilities in the U.S. and China, positioning itself to manage emerging tariff policies effectively[67]. - The company is considering additional manufacturing locations in Europe to further enhance its operational capabilities[67]. Economic Outlook - Despite economic uncertainties, Data I/O remains focused on sustainable growth through innovation and improving its value proposition[68]. Expenses and Income - Research and development (R&D) expenses decreased to $1,515,000 in Q1 2025, a 4.2% decline from $1,582,000 in Q1 2024, representing 24.5% of net sales compared to 25.9% in the prior year[91]. - Selling, general and administrative (SG&A) expenses fell to $2,050,000 in Q1 2025, down 17.9% from $2,498,000 in Q1 2024, accounting for 33.2% of net sales versus 41.0% previously[92]. - Interest income dropped to $38,000 in Q1 2025, a 52.5% decrease from $80,000 in Q1 2024, attributed to lower interest rates and invested balances[94]. - The income tax expense for Q1 2025 was $21,000, down 48.8% from $41,000 in Q1 2024, primarily related to foreign and state taxes[96]. Cash and Working Capital - Working capital as of March 31, 2025, was approximately $16,014,000, a slight decrease of $71,000 from $16,085,000 at the end of 2024[98]. - Cash increased to $10,500,000, up $159,000 from December 31, 2024, due to higher sales and improved cost structure[98]. EBITDA and Valuation - EBITDA for Q1 2025 was ($272,000), an improvement from ($645,000) in Q1 2024, while adjusted EBITDA was ($98,000) compared to ($364,000) in the prior year[104]. - The company maintains a valuation allowance of $8,900,000 as of March 31, 2025, due to uncertainties related to loss history and economic outlook[97]. Capital Expenditure and Debt - The company has no significant capital expenditure plans but will continue to manage expenditures to support business development and new product releases[99]. - The company has no debt and believes it has sufficient cash and working capital to fund operations and capital requirements for the next year and beyond[101].

Core Insights - Data I/O Corporation announced open-market stock purchases by insiders, including Board members and senior management, indicating confidence in the company's future growth and strategic goals [1][2] - The company's President/CEO highlighted that recent stock prices do not reflect the inherent value of the business and its growth opportunities, emphasizing alignment with shareholders [2] Company Overview - Data I/O Corporation, established in 1972, specializes in advanced security and data deployment solutions for various electronic devices, including automotive, IoT, medical, and consumer electronics [3] - The company provides data provisioning solutions that enable customers to manage device intellectual property from inception to deployment, ensuring reliable and cost-effective product development [3]

Core Insights - Data I/O Corporation has received its largest adapter order in company history, valued at nearly $1 million, from a prominent European electronics distributor, expected to be fulfilled by the end of September 2025 [1][2]. Group 1: Order Significance - The order represents a major milestone for Data I/O, marking the largest single adapter order in over 50 years of operation [2]. - This order is significant as it comes from the distribution channel market, which is a targeted area for customer expansion and revenue diversification for the company [2]. Group 2: Product and Technology - The adapters will support Data I/O's automated programming systems, known for their speed, flexibility, and cost-effectiveness [2]. - These adapters serve as a physical interface between the automated programming systems and various semiconductor devices, including microcontrollers and flash memory [2]. Group 3: Company Background - Data I/O Corporation has been developing innovative solutions since 1972, enabling the design and manufacture of electronic products across various sectors, including automotive and Internet-of-Things [3]. - The company provides data provisioning solutions that allow OEMs to program and securely provision devices from early samples to high-volume production [3].

Core Viewpoint - Data I/O Corporation held a conference call to discuss its First Quarter 2025 financial results, highlighting key financial metrics and future expectations [1][3]. Financial Performance - The conference call included presentations from the President and CEO, Bill Wentworth, and CFO, Gerry Ng, indicating a structured approach to financial reporting [3]. - The company emphasized the importance of understanding the impact of various factors on its financial performance, including global events and market conditions [4][5]. Market Conditions - The discussion acknowledged uncertainties related to global and geopolitical events, international trade regulations, and the overall activity level in the automotive and semiconductor industries [5]. - The company noted that order levels and market acceptance of new products are critical for revenue recognition, which may be influenced by economic conditions and demand fluctuations [5].