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Data I/O (DAIO)
NASDAQ:DAIO
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Data I/O
(NASDAQ:DAIO)
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Rating:52Neutral
Price Target:
$3.50
▲(3.55% Upside)
Data I/O's overall stock score reflects significant financial challenges, particularly in profitability and cash flow, despite some positive technical momentum. The valuation is weak due to negative earnings, and while strategic investments are promising, they are overshadowed by current operational difficulties.
Data I/O (DAIO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.73M
Dividend YieldN/A
Average Volume (3M)41.91K
Price to Earnings (P/E)―
Beta (1Y)0.66
Revenue Growth-7.58%
EPS Growth-69.20%
CountryUS
Employees88
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)-0.08
Shares Outstanding9,387,663
10 Day Avg. Volume22,595
30 Day Avg. Volume41,914
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)1.44
Price to Sales (P/S)1.16
P/FCF Ratio-17.34
Enterprise Value/Market Cap0.67
Enterprise Value/Revenue0.94
Enterprise Value/Gross Profit1.81
Enterprise Value/Ebitda-9.35
Forecast
1Y Price Target
$3.50Price Target Upside3.55% Upside
Rating ConsensusHold
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 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
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.45
Neutral
Balance Sheet
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.55
Neutral
Cash Flow
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.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.73M | 21.77M | 28.06M | 24.22M | 25.84M | 20.33M |
| Gross Profit | 11.78M | 11.61M | 16.19M | 13.21M | 14.72M | 10.82M |
| EBITDA | -2.28M | -2.47M | 1.06M | -189.00K | 394.00K | -1.32M |
| Net Income | -2.61M | -3.09M | 486.00K | -1.12M | -555.00K | -3.96M |
Balance Sheet | ||||||
| Total Assets | 24.12M | 24.97M | 27.40M | 27.16M | 29.06M | 25.59M |
| Cash, Cash Equivalents and Short-Term Investments | 9.97M | 10.33M | 12.34M | 11.51M | 14.19M | 14.17M |
| Total Debt | 1.75M | 2.80M | 1.50M | 2.30M | 2.28M | 588.00K |
| Total Liabilities | 6.87M | 7.34M | 7.08M | 8.06M | 9.20M | 5.95M |
| Stockholders Equity | 17.25M | 17.63M | 20.32M | 19.11M | 19.85M | 19.64M |
Cash Flow | ||||||
| Free Cash Flow | -1.59M | -1.46M | 1.23M | -2.13M | 787.00K | -229.00K |
| Operating Cash Flow | -944.00K | -995.00K | 2.43M | -1.05M | 1.41M | 631.00K |
| Investing Cash Flow | -650.00K | -467.00K | -1.20M | -1.08M | -623.00K | -860.00K |
| Financing Cash Flow | -104.00K | -232.00K | -356.00K | -165.00K | -423.00K | -144.00K |
Data I/O Technical Analysis
Positive
3.38
Price Trends
3.26
Positive
3.04
Positive
2.84
Positive
Market Momentum
0.03
Positive
56.72
Neutral
42.56
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 3.38 is above the 20-day moving average (MA) of 3.29, above the 50-day MA of 3.26, and above the 200-day MA of 2.84, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 56.72 is Neutral, neither overbought nor oversold. The STOCH value of 42.56 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | 66.70M | 15.37 | 18.56% | ― | 27.70% | ― | |
64 Neutral | 36.14M | 167.50 | ― | ― | 26.84% | -45.92% | |
63 Neutral | 54.62M | -29.70 | -21.61% | ― | 7.47% | -133.39% | |
52 Neutral | $31.73M | ― | -14.45% | ― | -7.58% | -69.20% | |
50 Neutral | 25.77M | -7.88 | -9.64% | ― | -14.49% | -149.37% | |
50 Neutral | 51.82M | -29.45 | -50.35% | ― | -4.46% | -17.79% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
DAIO
Data I/O
3.38
0.81
31.52%
LGL
LGL Group
6.70
0.57
9.30%
MIND
MIND Technology
8.37
4.51
116.84%
NSYS
Nortech Systems
9.25
-2.46
-21.01%
REFR
Research Frontiers
1.54
-0.65
-29.68%
CPSH
CPS Technologies
3.76
2.34
164.79%
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.