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Data I/O (DAIO)
NASDAQ:DAIO
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Data I/O
(NASDAQ:DAIO)
44Neutral
Data I/O (DAIO) vs. S&P 500 (SPY)
Market Cap
$23.18M
Dividend YieldN/A
Average Volume (3M)19.16K
Price to Earnings (P/E)―
Beta (1Y)0.85
Revenue Growth-22.43%
EPS Growth-720.55%
CountryUS
Employees91
SectorTechnology
Sector Strength44
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)-0.34
Shares Outstanding9,236,019
10 Day Avg. Volume9,568
30 Day Avg. Volume19,165
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.98
Price to Cash Flow (P/CF)6.90
P/FCF Ratio8.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Data I/O Business Overview & Revenue Model
Company DescriptionData I/O Corporation engages in the design, manufacture, and sale of programming and security deployment systems and services for electronic device manufacturers in the United States, Europe, and internationally. The company's programming system products are used to program integrated circuits (ICs) with the specific data necessary for the ICs. It offers PSV handlers offline automated programming systems; SentriX, a security deployment system; RoadRunner and RoadRunner3 series handlers, an in-line automated programming systems; LumenX Programmer; and non-automated FlashPAK III programming systems. The company also provides hardware support, system installation and repair, and device programming services. It markets and sells its products to original equipment manufacturers in automotive and consumer electronics, Internet of Things and their programming center partners, and electronic manufacturing service contract manufacturers through direct sales, and indirect sales representatives and distributors. Data I/O Corporation was incorporated in 1969 and is headquartered in Redmond, Washington.
How the Company Makes MoneyData I/O Corporation generates revenue primarily through the sale of its programming systems and associated software solutions. The company offers both capital equipment sales and recurring revenue from software and service contracts. Key revenue streams include the sale of automated programming systems, manual programming systems, and software updates and support services. Partnerships with semiconductor manufacturers and electronics contract manufacturers also play a significant role in driving sales, providing Data I/O with access to a broader customer base and new market opportunities. Additionally, the company may generate income through licensing agreements and custom programming solutions tailored to specific customer requirements.
Data I/O Financial Statement Overview
Summary
Data I/O's financial performance is weak, with declining revenues, negative profitability, and potential liquidity issues. The income statement shows a significant decline in revenue and profit margins. The balance sheet reflects moderate stability with low debt but diminishing equity. Cash flow concerns are highlighted by the absence of operating and free cash flows in 2024.Income Statement
Data I/O's income statement reveals significant challenges, with a declining revenue trend and negative profitability metrics. The gross profit margin has decreased from 57.7% in 2023 to 53.3% in 2024. The net profit margin has also worsened from 1.7% in 2023 to -14.2% in 2024. Additionally, EBIT and EBITDA margins are negative, indicating operational inefficiencies. The revenue growth rate is also negative, showing a decline of 22.4% from 2023 to 2024, further highlighting the company's struggles in generating sales and managing costs efficiently.45
Neutral
Balance Sheet
The balance sheet of Data I/O indicates moderate financial stability. The debt-to-equity ratio is low at 0.12, suggesting conservative leverage. However, the return on equity (ROE) is negative at -17.5%, reflecting poor profitability relative to equity base. The equity ratio stands at 70.6%, which is strong and indicates a solid equity foundation. Despite these strengths, the declining stockholders' equity from $20.3 million in 2023 to $17.6 million in 2024 is a concern.55
Neutral
Cash Flow
Data I/O's cash flow statement is concerning due to the absence of operating, investing, and free cash flows in 2024. The operating cash flow to net income ratio was not calculable due to zero operating cash flow, and the free cash flow to net income ratio is also zero. The company showed a drastic reduction in free cash flow from $1.23 million in 2023 to zero in 2024, indicating potential liquidity issues.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 21.77M | 28.06M | 24.22M | 25.84M | 20.33M | Gross Profit |
| 11.61M | 16.19M | 13.21M | 14.72M | 10.82M | EBIT |
| -3.04M | 448.00K | -749.00K | -273.00K | -2.43M | EBITDA |
| -2.44M | 1.06M | -189.00K | 394.00K | -1.32M | Net Income Common Stockholders |
| -3.09M | 486.00K | -1.12M | -555.00K | -3.96M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 10.33M | 12.34M | 11.51M | 14.19M | 14.17M | Total Assets |
| 24.97M | 27.40M | 27.16M | 29.06M | 25.59M | Total Debt |
| 2.16M | 1.50M | 2.30M | 2.28M | 588.00K | Net Debt |
| -8.17M | -10.84M | -9.21M | -11.91M | -13.58M | Total Liabilities |
| 7.34M | 7.08M | 8.06M | 9.20M | 5.95M | Stockholders Equity |
| 17.63M | 20.32M | 19.11M | 19.85M | 19.64M |
| Cash Flow | Free Cash Flow | |||
| 0.00 | 1.23M | -2.13M | 787.00K | -229.00K | Operating Cash Flow |
| 0.00 | 2.43M | -1.05M | 1.41M | 631.00K | Investing Cash Flow |
| 0.00 | -1.20M | -1.08M | -623.00K | -860.00K | Financing Cash Flow |
| 0.00 | -356.00K | -165.00K | -423.00K | -144.00K |
Data I/O Technical Analysis
Negative
2.45
Price Trends
2.77
Negative
2.75
Negative
2.67
Negative
Market Momentum
-0.08
Negative
41.23
Neutral
80.39
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAIO, the sentiment is Negative. The current price of 2.45 is below the 20-day moving average (MA) of 2.47, below the 50-day MA of 2.77, and below the 200-day MA of 2.67, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 41.23 is Neutral, neither overbought nor oversold. The STOCH value of 80.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DAIO.
Data I/O Risk Analysis
Data I/O disclosed 21 risk factors in its most recent earnings report. Data I/O reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Data I/O Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.60B | 8.09 | 21.41% | ― | -9.97% | -17.87% | |
73 Outperform | $13.36B | 24.87 | 20.29% | 0.58% | 5.52% | 16.59% | |
70 Outperform | $234.13M | 9.76 | 20.94% | ― | -37.77% | 3.20% | |
63 Neutral | $2.22B | 31.89 | 7.50% | ― | 15.16% | -15.16% | |
57 Neutral | $20.97B | 10.32 | -14.01% | 2.49% | 4.46% | -23.38% | |
46 Neutral | $687.10M | ― | -7.73% | ― | -36.86% | -351.11% | |
44 Neutral | $23.18M | ― | -16.30% | ― | -22.43% | -720.55% |
* Technology Sector Average
Performance Comparison
DAIO
Data I/O
2.45
-1.05
-30.00%
AEHR
Aehr Test Systems
7.29
-4.60
-38.69%
ACLS
Axcelis Technologies
49.67
-58.51
-54.09%
COHU
Cohu
14.71
-17.67
-54.57%
FORM
Formfactor
28.29
-17.09
-37.66%
TER
Teradyne
82.60
-27.10
-24.70%
Data I/O Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -11.55% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
While there are positive signs such as growth in Asia and operational improvements, the significant revenue decline, reduced gross margins, and net loss highlight substantial challenges. The sentiment is balanced with positive initiatives but overshadowed by financial declines.Highlights
Asian Market Growth
Despite challenges in other regions, Asia showed a 14% revenue growth for the year, demonstrating strong market potential in that region.
Strong Order Backlog
Order backlog increased by $700,000, ending at $3.5 million, indicating continued demand and future revenue potential.
Operational Efficiencies
Implemented AI agents and other technology, leading to reductions in production and service spending by $250,000, a 4% decrease from the prior year.
Consultative Sales Approach Success
New sales approach reduced the sales cycle from 140 to 70 days, indicating early success in engaging with customers more effectively.
Lowlights
Significant Revenue Decline
Fourth quarter revenue decreased by 25% to $5.2 million, and full year 2024 sales were down 22% to $21.8 million compared to 2023.
Decreased Automotive Bookings
Automotive electronics bookings fell from 63% in 2023 to 59% in 2024, reflecting industry challenges and market uncertainties.
Gross Margin Reduction
Gross margin fell to 52% in Q4 2024 and 53% for the year, down from 58% in 2023, due to lower sales volumes and fixed cost absorption issues.
Net Loss for the Year
The company incurred a net loss of $1.2 million in Q4 and $3.1 million for the full year, contrasting with a profit in 2023.
Company Guidance
During the call, Data I/O provided guidance indicating a focus on expanding operational leverage and entering new markets, with efforts led by newly appointed VP of Sales and Marketing, Monty Reagan. The company has adopted a consultative sales approach, aiming to reduce the sales cycle from 140 days to 70 days, which has shown early positive results. Data I/O's strategy includes building out its algorithm library, which is a key performance indicator (KPI) for platform growth. Despite lower revenues, with fourth quarter revenue at $5.2 million and full-year 2024 sales at $21.8 million, Data I/O maintains a strong order backlog of $3.5 million. The company aims to improve its cost structure and leverage new go-to-market strategies, while also managing operating expenses, which were $4 million in Q4, including $620,000 in one-time charges. The company ended the year with $10.3 million in cash and no debt, and it plans to focus on strengthening its cash position to support future strategic investments.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.