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Data I/O (DAIO)
NASDAQ:DAIO
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Data I/O (DAIO) AI Stock Analysis

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DAIO

Data I/O

(NASDAQ:DAIO)

Rating:56Neutral
Price Target:
$3.50
▲(10.41% Upside)
Data I/O's overall stock score is primarily impacted by financial challenges, including net losses and cash flow pressures. While strategic investments and growth in automotive electronics provide some optimism, the negative P/E ratio and lack of dividend yield weigh heavily on valuation. Technical indicators suggest neutral momentum, and the earnings call presents a mixed outlook with both opportunities and challenges.

Data I/O (DAIO) vs. SPDR S&P 500 ETF (SPY)

Data I/O Business Overview & Revenue Model

Company DescriptionData I/O Corporation (DAIO) is a leading provider of programming and production solutions for flash memory and semiconductors, primarily serving the automotive, industrial, and consumer electronics sectors. The company's core products include advanced programming systems and software that facilitate the efficient programming of semiconductor devices. Data I/O's technology is crucial for manufacturers in ensuring the quality and reliability of their products, supporting a wide range of applications from automotive control systems to mobile devices.
How the Company Makes MoneyData I/O generates revenue through the sale of its programming systems and software solutions, which are typically sold as capital equipment to manufacturers in various sectors. The company also earns revenue from recurring software maintenance contracts and support services that ensure the ongoing functionality of its systems. Additionally, Data I/O benefits from partnerships with major semiconductor manufacturers, which enhance its market reach and provide integrated solutions that appeal to a wider customer base. The company may also generate income from licensing its technology and intellectual property to other firms in the semiconductor industry.

Data I/O Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with several strategic highlights such as increased bookings, significant investments in technology, and growth in automotive electronics. However, these were offset by lowlights including a decrease in net sales, reduced gross margins, an operating loss, and challenges in the Korean market due to tariffs.
Q2-2025 Updates
Positive Updates
Increase in Bookings
Second quarter 2025 bookings were $5.8 million, up from $4.6 million in the first quarter of 2025 and $5.6 million in the second quarter of 2024, indicating a positive trend in order activity.
Strategic Investments
The company has made significant investments in a new universal programming platform to handle complex technologies such as UFS and NVMe, which are expected to have annual CAGRs of 14% till 2030.
Automotive Electronics Growth
Automotive electronics represented 66% of second quarter 2025 bookings, up from 59% for all of 2024, with strong performance in the EV sector in Asia, particularly China.
No Debt Position
The company continues to maintain a strong financial position with no debt and a cash balance of $10 million as of June 30, 2025.
Negative Updates
Decrease in Net Sales
Net sales in the second quarter of 2025 were $5.0 million, down from $6.2 million in the first quarter of 2025, indicating a decline in revenue.
Gross Margin Decline
Gross margin as a percentage of sales was 49.8% in the second quarter 2025, compared to 51.6% in the first quarter 2025 and 54.5% in the prior year period, due to lower margin product mix.
Operating Loss
The company reported an operating loss of $844,000 in the second quarter 2025, primarily due to onetime expenses totaling $480,000.
Challenges in Korea
South Korea's revenue was significantly impacted by tariff-driven issues, resulting in no revenue for the first half of 2025 from this region.
Company Guidance
During the Data I/O Second Quarter 2025 Financial Results Conference Call, the company provided guidance reflecting both challenges and opportunities. Net sales for Q2 2025 were $5.0 million, a decrease from $6.2 million in Q1 2025 but slightly up from $5.1 million in Q2 2024. Bookings showed improvement, with $5.8 million in Q2 2025, up from $4.6 million in Q1 2025. The automotive electronics segment represented 66% of bookings, up from 59% in 2024. Gross margin declined to 49.8% from 51.6% in Q1 2025, influenced by product mix and large customer orders. Operating expenses increased to $3.8 million, driven by $480,000 in onetime investments primarily in technology and human resources. The company expects to announce a permanent CFO in Q3 2025, with some double spending anticipated. Data I/O remains optimistic about its technology investments, particularly in UFS flash memory and NVMe technologies, which are projected to have annual CAGRs of 14% through 2030. The company plans to introduce new products at six major events in the second half of 2025, aiming to enhance lead generation and diversify beyond the automotive market.

Data I/O Financial Statement Overview

Summary
Data I/O faces financial challenges with consistent net losses impacting profitability metrics. Despite a strong equity position and conservative leverage, cash flow pressures remain evident. The company needs to address operational inefficiencies to improve its financial health.
Income Statement
55
Neutral
Data I/O's revenue has been volatile, with a recent decline in TTM (Trailing-Twelve-Months) revenue compared to the previous year. Gross profit margin remains healthy at 53.0% in TTM, but net profit margin is negative due to consistent net losses. The EBIT and EBITDA margins are also negative, reflecting operational challenges.
Balance Sheet
65
Positive
The company maintains a strong equity position with an equity ratio of 71.6% in TTM. However, the debt-to-equity ratio is low at 0.11, indicating conservative leverage. Return on equity is negative due to net losses, but the overall balance sheet remains stable with a solid asset base.
Cash Flow
50
Neutral
Operating cash flow is negative in TTM, indicating cash flow challenges. Free cash flow has improved from the previous year, showing a reduction in negative cash flow. However, both operating and free cash flow to net income ratios are not favorable, reflecting ongoing financial pressure.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue21.85M21.77M28.06M24.22M25.84M20.33M
Gross Profit11.57M11.61M16.19M13.21M14.72M10.82M
EBITDA-2.05M-2.47M1.06M-189.00K394.00K-1.32M
Net Income-2.67M-3.09M486.00K-1.12M-555.00K-3.96M
Balance Sheet
Total Assets24.51M24.97M27.40M27.16M29.06M25.59M
Cash, Cash Equivalents and Short-Term Investments10.48M10.33M12.34M11.51M14.19M14.17M
Total Debt2.56M2.80M1.50M2.30M2.28M588.00K
Total Liabilities6.97M7.34M7.08M8.06M9.20M5.95M
Stockholders Equity17.55M17.63M20.32M19.11M19.85M19.64M
Cash Flow
Free Cash Flow-1.23M-1.46M1.23M-2.13M787.00K-229.00K
Operating Cash Flow-845.00K-995.00K2.43M-1.05M1.41M631.00K
Investing Cash Flow-384.00K-467.00K-1.20M-1.08M-623.00K-860.00K
Financing Cash Flow-237.00K-232.00K-356.00K-165.00K-423.00K-144.00K

Data I/O Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.17
Price Trends
50DMA
3.19
Negative
100DMA
2.85
Positive
200DMA
2.79
Positive
Market Momentum
MACD
-0.03
Positive
RSI
50.84
Neutral
STOCH
68.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAIO, the sentiment is Positive. The current price of 3.17 is below the 20-day moving average (MA) of 3.18, below the 50-day MA of 3.19, and above the 200-day MA of 2.79, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 50.84 is Neutral, neither overbought nor oversold. The STOCH value of 68.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$51.13M-11.74%7.47%-133.39%
65
Neutral
$81.81M47.2012.53%22.59%
64
Neutral
$35.80M165.900.56%26.84%-45.92%
61
Neutral
$35.51B8.11-11.05%1.89%8.55%-8.72%
56
Neutral
$29.76M-14.45%-7.58%-69.20%
51
Neutral
$25.58M6.41-9.26%-14.49%-149.37%
44
Neutral
$43.74M-73.36%-4.46%-17.79%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DAIO
Data I/O
3.17
0.79
33.19%
LGL
LGL Group
6.64
0.61
10.12%
MIND
MIND Technology
9.44
6.20
191.36%
NSYS
Nortech Systems
9.30
-2.44
-20.78%
REFR
Research Frontiers
1.30
-0.79
-37.80%
CPSH
CPS Technologies
3.40
2.08
157.58%

Data I/O Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Data I/O Appoints Charles DiBona as CFO
Neutral
Aug 12, 2025

On August 11, 2025, Data I/O announced the appointment of Charles DiBona as its new Chief Financial Officer. This leadership change is expected to influence the company’s financial strategy and potentially impact its market positioning.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Sep 05, 2025