Financial Data and Key Metrics Changes - Revenue for the first quarter of 2025 was $6,200,000, representing a 19% increase from $5,200,000 in the fourth quarter of 2024 and a slight increase from $6,100,000 in the first quarter of 2024 [13][14] - Net loss for the first quarter was $382,000, an improvement from a net loss of $1,200,000 in the fourth quarter of 2024 and $807,000 in the prior year period [17] - Adjusted EBITDA was nearly breakeven at a loss of $98,000 compared to a loss of $364,000 for the prior year period [18] Business Line Data and Key Metrics Changes - Automotive electronics accounted for 66% of first quarter bookings, up from 59% for all of 2024 [13] - Consumables, including adapters and services, represented 46% of total first quarter revenue, providing a stable base of recurring revenue [14] - New bookings for the first quarter were $4,600,000, up from $4,100,000 in the fourth quarter of 2024 but down from $8,000,000 in the first quarter of 2024 [14] Market Data and Key Metrics Changes - Revenue from the Americas and Europe saw significant growth, with increases of 324% and 244% respectively, while Asia experienced a 40% decline due to prior year performance and current trade uncertainties [13][14] - Backlog at the end of the first quarter was $2,900,000, down $600,000 from December 31 [15] Company Strategy and Development Direction - The company is focusing on strategic investments for growth and productivity improvements, with a new product roadmap to be detailed in the next quarter or two [7] - Discussions with semiconductor companies are ongoing, aiming to establish strategic relationships that will support future growth [8] - The company is adapting to tariff impacts by exploring various pathways to deliver products without significant disruptions [6] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that tariffs and trade uncertainties have created challenges but expressed confidence in navigating these issues [19] - The company remains cautious for the second quarter but is focused on driving sales improvement through new market strategies [19] - Management highlighted the importance of customer communication and monitoring market conditions closely [59] Other Important Information - Operating expenses for the first quarter were CAD3.6 million, down 11% from the fourth quarter and 12% from the prior year [17] - The company maintains a healthy cash position with $10,500,000 in cash at the end of the first quarter, reflecting improved sales and cost structure [18] Q&A Session Summary Question: Revenue mix between capital equipment, adapters, and software - The recurring revenue mix decreased to 46% in Q1 2025 from 50% in 2024, driven by increased system deliveries [21][22] Question: Expense reduction potential for the current year - The company anticipates ongoing opportunities for expense reduction but will balance this with necessary investments for growth [27][28] Question: Progress in the semiconductor sector - Management reported positive developments in establishing relationships with semiconductor companies, indicating faster progress than expected [35][36] Question: Improvement in orders in April - There is cautious optimism regarding recurring revenue, but system sales may be slower due to ongoing tariff uncertainties [53][54] Question: Utilization of systems - The company does not track customer system utilization due to security concerns but monitors adapter sales as an indicator of usage [56][57]

Data I/O (DAIO) Q1 2025 Earnings Call April 24, 2025 05:00 PM ET Speaker0 Good afternoon, and welcome to the Data IO First Quarter twenty twenty five Financial Results Conference Call. All participants will be in a listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Mr. Jordan Darrow, Investor Relations. Please go ahead, sir. Speaker1 Thank you, operator, and welcome to the Data ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): April 24, 2025 Data I/O Corporation (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation) Washington 0-10394 91-0864123 (Commission File Number) (IRS Employer Identification No.) Not Applicable (Former name or former address, if changed since last report) ...

Progress Made in Key Operational Areas Product Development Milestones Set Delivered Sequential Growth Despite Global Trade TensionsRedmond, Washington--(Newsfile Corp. - April 24, 2025) - Data I/O Corporation (NASDAQ: DAIO), the leading global provider of advanced security and data deployment solutions for microcontrollers, security ICs and memory devices, today announced financial results for the first quarter ended March 31, 2025.Management Comments Commenting on the quarter ended March 31, 2025, William ...

Sales Performance - In 2024, equipment sales accounted for 51% of total sales, down from 58% in 2023, while adapter sales increased to 33% from 29%[27]. - Net sales in the U.S. for 2024 were $1.4 million, a decrease from $2.8 million in 2023 and $1.8 million in 2022[33]. - Total net sales decreased to $21,769 million in 2024 from $28,064 million in 2023, representing a decline of approximately 22%[191]. - Total revenue for 2024 was $21.769 million, a decrease of 22.4% from $28.064 million in 2023[224]. - Equipment sales decreased by 32.8% to $10.985 million in 2024 from $16.343 million in 2023[224]. - International sales accounted for approximately 94%, 90%, and 93% of net sales in 2024, 2023, and 2022, respectively, indicating a strong reliance on global markets[87]. Financial Results - Gross margin fell to $11,606 million in 2024, down from $16,186 million in 2023, a decrease of about 28%[191]. - Operating loss for 2024 was $3,038 million compared to an operating income of $448 million in 2023, indicating a significant downturn[191]. - Net loss for 2024 was $3,093 million, contrasting with a net income of $486 million in 2023[191]. - Total current assets decreased to $21,157 million in 2024 from $24,613 million in 2023, a reduction of approximately 14%[189]. - Total liabilities decreased to $7,344 million in 2024 from $7,882 million in 2023, a decline of about 7%[190]. - Cash and cash equivalents at the end of 2024 were $10,326 million, down from $12,341 million at the end of 2023, a decrease of approximately 16%[198]. - Total stockholders' equity decreased to $17,626 million in 2024 from $20,319 million in 2023, a decline of approximately 13%[190]. Customer and Market Dynamics - The company sold products to approximately 197 customers globally in 2024, with two customers representing 34% of net sales[30][31]. - The company has concentrated on automotive electronics customers, with orders from this segment representing 59% in 2024, 63% in 2023, and 61% in 2022, highlighting potential risks if demand decreases[68]. - Significant customers represented 34% of net sales in 2024, up from 24% in 2023[235]. Research and Development - Research and development expenditures were $6.2 million in 2024, representing 29% of net sales, compared to $6.5 million (23%) in 2023 and $6.1 million (25%) in 2022[45]. - The company is investing significantly in new product initiatives, particularly in security deployment, although market acceptance remains uncertain, which could affect expected returns on investment[64]. Operational Challenges - The company experienced lower shipments of automated systems in the Americas and Europe due to economic uncertainties, partially offset by revenue growth in Asia[17]. - The company faces challenges in adapting to new technological trends, which could impact competitiveness and financial results if timely product innovation is not achieved[66]. - The company relies on a small number of suppliers for key components, which may lead to shortages and adversely affect business operations[81]. - Fluctuations in quarterly operating results are expected, with revenue heavily dependent on orders received within each quarter, potentially leading to financial instability[91]. Management and Governance - The new CEO, William Wentworth, was appointed in the fourth quarter of 2024 following the retirement of Anthony Ambrose[18]. - The company is committed to environmental, social, and governance (ESG) responsibilities, including purchasing sustainable electric power and reducing carbon emissions[50][52]. - The company must navigate compliance with various international regulations, including CE certification and RoHS directives, to maintain market access in Europe[88]. Risks and Uncertainties - The company is exposed to geopolitical risks, including trade tensions and conflicts, which could disrupt supply chains and impact financial performance[63]. - Cybersecurity risks could lead to liabilities and costs, as well as damage to data or customer access to information systems[103]. - The company has incurred operating losses in five of the last ten years and may struggle to generate sufficient revenue to achieve profitability[96]. - The company may need to raise additional capital due to past and future revenues being insufficient to support operational expenses and business expansion[98]. Employee and Workforce - As of December 31, 2024, the company had a total of 95 employees, with 45 located outside the U.S., and emphasizes competitive pay and benefits to attract and retain skilled employees[49]. - The loss of key employees could adversely affect operations, as many employees are highly skilled and in great demand within the industry[97].

Data I/O to Demonstrate New Unified Programming Platform Strategy at the Upcoming IPC APEX ExpoNewly refreshed manual programmers engineered to seamlessly support design through production and beyond on a single platformMarch 17, 2025 9:00 AM EDT | Source: Data I/O Corp.Redmond, Washington--(Newsfile Corp. - March 17, 2025) - Data I/O Corporation (NASDAQ: DAIO), the leading global provider of advanced security and data deployment solutions for microcontrollers, security ICs and memory devices, ...

Financial Performance - Net sales for Q4 2024 were $5.2 million, a decrease of 25% compared to $6.9 million in Q4 2023[15]. - For the full year 2024, net sales totaled $21.8 million, down 22% from $28.1 million in 2023[15]. - Q4 2024 bookings were $4.1 million, down 42% from $7.2 million in Q4 2023, while total bookings for 2024 were $22.5 million, a 13% decline from $25.8 million in 2023[16]. - The net loss for Q4 2024 was ($1.2) million or ($0.13) per share, compared to net income of $144,000 or $0.02 per share in Q4 2023[19]. - Net income for the twelve months ended December 31, 2024, was a loss of $3,093 thousand, compared to a profit of $486 thousand in 2023[33]. - Adjusted EBITDA for Q4 2024 was ($1.1) million, compared to $514,000 in the prior year period, with full year Adjusted EBITDA at ($1.4) million in 2024, down from $2.3 million in 2023[20]. - Adjusted EBITDA, excluding equity compensation, fell from $2,288 thousand in 2023 to a loss of $1,439 thousand in 2024[33]. - EBITDA earnings for the three months ended December 31, 2024, were a loss of $1,124 thousand, compared to earnings of $253 thousand in the same period of 2023[33]. Margins and Expenses - Gross margin for Q4 2024 was 52.2%, down from 58.0% in the prior year, with full year gross margin at 53.3%, compared to 57.7% in 2023[17]. - Operating expenses for Q4 2024 were $4.0 million, up 5% from the prior year, including approximately $500,000 in one-time charges related to organizational changes[18]. Cash and Assets - Cash at the end of Q4 2024 was $10.3 million, a decrease of $2 million from $12.3 million on December 31, 2023[21]. - Total current assets decreased from $24,613 million in 2023 to $21,157 million in 2024, a decline of approximately 13.5%[31]. - Cash and cash equivalents decreased from $12,341 million in 2023 to $10,326 million in 2024, a decline of 16.3%[31]. - Trade accounts receivable decreased from $5,707 million in 2023 to $3,960 million in 2024, a decline of approximately 30.6%[31]. - Inventories increased from $5,875 million in 2023 to $6,212 million in 2024, an increase of about 5.7%[31]. Liabilities and Equity - Total liabilities decreased from $27,401 million in 2023 to $24,970 million in 2024, a reduction of about 9.9%[31]. - Total stockholders' equity decreased from $20,319 million in 2023 to $17,626 million in 2024, a decrease of approximately 13.3%[31]. - Accumulated earnings (deficit) worsened from a deficit of $2,645 thousand in 2023 to a deficit of $5,738 thousand in 2024[31]. Market Dynamics - Automotive electronics represented 59% of 2024 bookings, down from 63% in 2023, indicating a shift in market dynamics[15]. - The company continues to focus on optimizing its core programming platform and enhancing its sales process to drive profitability and market share[9].

Financial Data and Key Metrics Changes - Fourth quarter revenue was $5.2 million, down 25% from the prior period, and full year sales were $21.8 million, down 22% from $28.1 million in 2023 [28][35] - Gross margin for the fourth quarter was 52% and for the full year was 53%, down from 58% in 2023, primarily due to lower sales volume [31] - The company incurred a net loss of $1.2 million for the fourth quarter and $3.1 million for the full year, compared to a net profit of $144,000 in the fourth quarter and $486,000 for the full year 2023 [35] Business Line Data and Key Metrics Changes - Automotive electronics represented 59% of 2024 bookings, down from 63% in 2023, with significant declines in the Americas and European markets [29] - Asia revenue grew by 14% for the year, contrasting with the declines in other regions [30] Market Data and Key Metrics Changes - Order backlog remained strong at $3.5 million as of December 31, up $700,000 from the start of the year [30] - The company reported a decrease in operating expenses for the full year, down $1.1 million or 7% from the prior year [34] Company Strategy and Development Direction - The company is focusing on building out its algorithm library, which is crucial for customer support and market share growth [19] - A consultative sales approach has been implemented, reducing the sales cycle from over 140 days to 70 days in early 2024 [13][14] - The company aims to return to profitability and accelerate top-line growth by expanding into new markets and enhancing operational efficiencies [25][40] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of automotive market headwinds and political changes on growth perspectives, emphasizing the need to diversify beyond the automotive sector [53][54] - There is optimism regarding Q1 performance, with bookings expected to improve compared to Q4 [60][106] Other Important Information - The company maintains a healthy cash position with no debt, ending the year with $10.3 million in cash [38][40] - The company is actively managing tariff impacts and exploring ways to mitigate costs associated with international trade [71][72] Q&A Session Summary Question: Clarification on nonrecurring expenses - Gerald Ng confirmed that the one-time expenses in Q4 should not recur in 2025, and the company will continue to drive efficiencies [48] Question: Sales funnel and expectations for the year - Bill Wentworth discussed the impact of the political environment and the automotive industry slowdown, but noted that Q1 bookings are strengthening [53][60] Question: Tariff impact on manufacturing - Gerald Ng explained the company's international footprint helps mitigate tariff impacts, and they are actively managing material costs [70][72] Question: Success of electric vehicles in Asia - Bill Wentworth indicated that while electrification contributes to demand, traditional combustion engine vehicles still drive significant technology content [82] Question: Future revenue expectations - Gerald Ng stated that while they do not provide forward-looking guidance, the goal is to improve revenue and leverage a strong backlog [92][93] Question: Adapter sales and customer engagement - Bill Wentworth highlighted a 20% increase in adapter activity early in the year, indicating positive engagement with service providers [113] Question: End markets for service providers - Bill Wentworth noted that service providers support a diverse range of vertical markets beyond automotive, including consumer electronics and IoT [135]

Financial Performance - Third quarter revenue was $5.4 million, down 17% from $6.6 million in the prior year period[54] - Net sales in Q3 2024 were $5.4 million, down 17% from $6.6 million in Q3 2023, primarily due to increased uncertainty in automotive electronics and slowed customer capacity expansion[77] - Total programming systems revenue for the third quarter was $5.4 million, a decrease of 17.3% compared to the previous year[76] - The company reported a net loss of $307,000 in Q3 2024, compared to a loss of $53,000 in Q3 2023[92] Revenue Breakdown - Automotive market system sales were below expectations, while consumables, software, and services grew 6%, representing 50% of year-to-date revenue[55] - Automated programming systems revenue was $4.0 million, down 23.8% year-over-year, while non-automated programming systems revenue increased by 9%[76] - Recurring services and consumable adapter sales increased by 6% year-over-year, while system sales declined by 34% in the same period[78] - The Asia channel grew 29% in the third quarter and 26% year-to-date, offsetting declines in the Americas and Europe[54] Expenses and Cost Management - Operating expenses for the third quarter were $3.2 million, a decrease of $334,000 or 9% year-over-year[56] - Research and development expenses decreased by 2.1% in Q3 2024 to $1.5 million compared to $1.6 million in Q3 2023, reflecting lower consulting costs[80] - Selling, general and administrative expenses decreased by 15% in Q3 2024 to $1.7 million, primarily due to lower sales commissions and efficiency improvements[81] - The company is focusing on managing costs to mitigate revenue shortfalls and fund future growth initiatives[56] Cash and Working Capital - The company expects continued near-term market headwinds but remains financially solid with a strong cash position and no debt[57] - Working capital decreased by $811,000 to $17.6 million as of September 30, 2024, due to lower revenue and higher inventories[85] - Interest income increased by 73.2% in Q3 2024 to $71,000 compared to $41,000 in Q3 2023, driven by higher average interest rates[82] Corporate Changes and Governance - A CEO transition occurred with William "Bill" Wentworth becoming CEO effective October 1, 2024, replacing Anthony Ambrose[58] - No changes were made in internal controls that materially affected financial reporting[95] - As of September 30, 2024, the company was not a party to any material pending legal proceedings[96] Tax and Valuation - The effective tax rate was affected by a valuation allowance of $9.3 million as of September 30, 2024, limiting the recognition of net deferred tax assets[83] - The company has no significant capital expenditure plans but will continue to manage expenditures to support business development[86]

Financial Performance - Net sales for Q3 2024 were $5.4 million, a decrease of 17% compared to $6.6 million in Q3 2023[7] - Recurring services and consumable adapter sales increased by 6% year-over-year, while system sales declined by 34%[7] - Net loss for Q3 2024 was ($307,000), or ($0.03) per share, compared to a net loss of ($53,000), or ($0.01) per share in Q3 2023[9] - Adjusted EBITDA for Q3 2024 was $37,000, down from $402,000 in Q3 2023[9] - Net income for the three months ended September 30, 2024, was a loss of $307 thousand compared to a loss of $53 thousand in the same period of 2023[18] - Adjusted EBITDA, excluding equity compensation, was $37 thousand for the three months ended September 30, 2024, down from $402 thousand in the same period of 2023[18] Expenses and Margins - Gross margin as a percentage of sales was 53.9% in Q3 2024, slightly up from 53.7% in the prior year[8] - Operating expenses decreased by 9% year-over-year to $3.2 million, with contributions from all operational areas[9] Cash and Assets - Cash at the end of Q3 2024 was $12.4 million, up from $11.4 million on June 30, 2024[10] - Total current assets decreased from $24,613 thousand as of December 31, 2023, to $22,160 thousand as of September 30, 2024, a decline of approximately 10%[17] - Trade accounts receivable decreased significantly from $5,707 thousand to $2,607 thousand, representing a reduction of about 54%[17] - Total assets decreased from $27,401 thousand to $24,843 thousand, a decline of approximately 9%[17] - Total current liabilities decreased from $6,188 thousand to $4,546 thousand, a reduction of about 26%[17] - The company continues to have no debt, maintaining a strong balance sheet with net working capital of $17.6 million[10] Equity and Earnings - Accumulated earnings (deficit) worsened from ($2,645) thousand to ($4,556) thousand, indicating a deeper loss[17] - Total stockholders' equity decreased from $20,319 thousand to $19,189 thousand, a reduction of about 6%[17] - Equity compensation increased slightly from $300 thousand to $304 thousand for the three months ended September 30, 2024[18] Strategic Direction - The company aims to diversify its market approach beyond automotive electronics to strengthen its position in other sectors[7] Backlog and Inventory - Backlog as of September 30, 2024, was $4.7 million, down $0.7 million from the start of the quarter[8] Property and Equipment - Property, plant, and equipment decreased from $1,359 thousand to $928 thousand, a decline of approximately 32%[17]