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

Data I/O (NASDAQ:DAIO) announced its quarterly earnings data on Thursday. The electronics maker reported ($0.27) earnings per share for the quarter, missing analysts’ consensus estimates of $0.01 by ($0.28), FiscalAI reports. The firm had revenue of $4.87 million during the quarter, compared to analyst estimates 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 Price Performance

Shares of NASDAQ DAIO traded up $0.10 during trading on Thursday, hitting $2.58. 177,865 shares of the company were exchanged, compared to its average volume of 45,220. Data I/O has a 1 year low of $2.16 and a 1 year high of $4.49. The company has a market cap of $26.79 million, a price-to-earnings ratio of -2.77 and a beta of 1.58. The firm’s fifty day moving average price is $2.70 and its 200 day moving average price is $2.96.

Insider Activity at Data I/O

In other news, major shareholder Red Oak Partners, Llc bought 373,133 shares of the stock in a transaction on Tuesday, October 20th. The shares were bought at an average price of $2.68 per share, with a total value of $999,996.44. Following the completion of the acquisition, the insider owned 242,934 shares of the company’s stock, valued at approximately $651,063.12. This trade represents a -286.59% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 4.06% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the company. Ladenburg Thalmann & Co. Inc. upgraded Data I/O to a “strong-buy” rating in a research report on Friday, July 24th. Weiss Ratings reissued a “sell (d-)” rating on shares of Data I/O in a research report on Thursday, October 15th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $5.00.

Data I/O Company Profile

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.