Data I/O (US:DAIO)2026-02-27 22:17Financial Performance - Fourth quarter 2025 net sales were $4.0 million, down from $5.2 million in the fourth quarter 2024, with full year 2025 net sales at $21.5 million compared to $21.8 million in 2024[14]. - Fourth quarter 2025 bookings were $3.1 million, a decrease of 25% from $4.1 million in the prior year period, with total bookings for 2025 at $18.6 million, down 17% from $22.5 million in 2024[15]. - Net loss for the fourth quarter 2025 was ($2.5) million or ($0.27) per share, compared to a net loss of ($1.2) million or ($0.13) per share in the fourth quarter 2024[18]. - Net loss for the twelve months ended December 31, 2025, was $(4,986) million, compared to $(3,093) million for the same period in 2024, representing a 60.9% increase in losses year-over-year[31]. Margins and Expenses - Gross margin for the fourth quarter 2025 was 43.0%, down from 52.2% in the fourth quarter 2024, with full year gross margin at 49.3% compared to 53.3% in 2024[17]. - Operating expenses for the fourth quarter 2025 were $4.2 million, including approximately $312,000 in one-time expenses, compared to $4.0 million in the fourth quarter 2024[18]. - Adjusted EBITDA for the fourth quarter 2025 was ($2.5) million, compared to ($1.1) million in the fourth quarter 2024, with full year Adjusted EBITDA at ($3.9) million compared to ($1.4) million in 2024[19]. - Adjusted EBITDA for Q4 2025 was $(1,939) million, compared to $(1,115) million in Q4 2024, indicating a decline in operational efficiency[37]. - Selling, general and administrative expenses increased to $2,571 million in Q4 2025 from $2,291 million in Q4 2024, reflecting a 12.2% rise in operational costs[31]. Assets and Equity - Total current assets decreased to $17,251 million in December 2025 from $21,157 million in December 2024, a decline of 18.4%[33]. - Total assets decreased to $20,176 million in December 2025 from $24,970 million in December 2024, a reduction of 19.4%[34]. - Total stockholders' equity fell to $13,764 million in December 2025 from $17,626 million in December 2024, a decrease of 22.1%[34]. Operational Highlights - Operating expense reductions of 7% were achieved, decreasing 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[10]. - The company reported a backlog of $2.3 million as of December 31, 2025, down from $2.7 million on September 30, 2025[16]. - Cash at the end of the fourth quarter 2025 was $7.9 million, down from $10.3 million on December 31, 2024, reflecting one-time expenses and technology investments[20]. - Research and development expenses for Q4 2025 were $1,645 million, slightly down from $1,701 million in Q4 2024, showing a focus on maintaining R&D investment[31]. Future Outlook - The company aims for organic revenue growth in 2026 compared to 2025, supported by a strategic transformation and increased customer demand in the Edge AI market[10].