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].

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].