Data I/O (NASDAQ:DAIO) Issues Earnings Results

Data I/O (NASDAQ:DAIO) posted its quarterly earnings data on Thursday. The electronics maker reported ($0.27) earnings per share for the quarter, missing the consensus estimate of $0.01 by ($0.28), FiscalAI reports. The company had revenue of $4.87 million for the quarter, compared to analysts’ expectations of $6.25 million. Data I/O had a negative net margin of 48.73% and a negative return on equity of 66.83%.

Here are the key takeaways from Data I/O’s conference call:

• Q3 sales fell to $4.9 million from $5.4 million a year earlier, and GAAP net loss widened to $2.7 million. Gross margin improved to 58%, while adjusted EBITDA excluding equity compensation and one-time items was near breakeven at negative $71,000; management attributed much of the reported cost and loss increase to transaction-related and other one-time expenses.
• Data I/O completed its V-TEK acquisition for $23 million, which management expects to be immediately accretive and to nearly double revenue. The company says the deal adds semiconductor packaging and testing capabilities, broadens its customer and end-market mix, and provides near-term cost and operational synergies.
• Management sees Programming-as-a-Service as a major growth opportunity, estimating the services market at $500 million to $700 million and the broader programming and provisioning market at more than $1 billion. It also cited a new Tesla Optimus purchase order, potential additional system orders, and V-TEK photonics systems booked through Q2, while noting automotive remains soft.
• Quarter-end cash was $9.4 million, down from $10.8 million at the prior quarter-end, reflecting operating cash use and transaction expenses. After quarter-end, the company raised $13.25 million in a private placement and secured a $7.5 million revolving credit facility, providing additional funding alongside the acquisition.

Data I/O Trading Down 1.8%

DAIO stock traded down $0.04 during trading on Thursday, reaching $2.44. The stock had a trading volume of 92,684 shares, compared to its average volume of 44,689. The stock’s 50 day moving average is $2.70 and its two-hundred day moving average is $2.96. The firm has a market cap of $25.31 million, a PE ratio of -2.62 and a beta of 1.58. Data I/O has a 52 week low of $2.16 and a 52 week high of $4.49.

Insider Buying and Selling at Data I/O

In related news, major shareholder Red Oak Partners, Llc acquired 373,133 shares of the stock in a transaction dated Tuesday, October 20th. The shares were purchased at an average cost of $2.68 per share, with a total value of $999,996.44. Following the transaction, the insider directly owned 242,934 shares in the company, valued at approximately $651,063.12. This represents a -286.59% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 4.06% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

DAIO has been the subject of several recent research reports. Ladenburg Thalmann & Co. Inc. raised shares of Data I/O to a “strong-buy” rating in a research note on Friday, July 24th. Weiss Ratings restated a “sell (d-)” rating on shares of Data I/O in a report on Thursday, October 15th. One research analyst has rated the stock with a Strong Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $5.00.

About Data I/O

Data I/O Corporation (NASDAQ:DAIO) develops and supplies automated programming and security-provisioning systems for electronic devices. Its equipment is used to load software, firmware and other data into semiconductor devices such as flash memory, microcontrollers and programmable logic devices during electronics manufacturing. The company’s product portfolio includes automated device-programming systems, programming engines, software and related accessories. Its offerings are designed to support high-volume production, improve programming accuracy and help manufacturers manage device security, including the provisioning of keys and other credentials used in connected and embedded products.