Data I/O (NASDAQ:DAIO) Issues Earnings Results, Misses Estimates By $0.28 EPS

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

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 Stock Performance

Shares of DAIO stock traded down $0.04 during trading hours on Thursday, reaching $2.44. The company had a trading volume of 92,684 shares, compared to its average volume of 44,689. The stock has a fifty day moving average of $2.70 and a 200-day moving average of $2.96. The company has a market capitalization of $25.31 million, a price-to-earnings ratio of -2.62 and a beta of 1.58. Data I/O has a 12-month low of $2.16 and a 12-month high of $4.49.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on the stock. 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 reiterated a “sell (d-)” rating on shares of Data I/O in a research note on Thursday, October 15th. One analyst has rated the stock with a Strong Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Data I/O currently has a consensus rating of “Hold” and an average target price of $5.00.

Insiders Place Their Bets

In other news, major shareholder Red Oak Partners, Llc bought 373,133 shares of the business’s 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 transaction, the insider directly owned 242,934 shares in the company, valued at $651,063.12. This trade represents a -286.59% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 4.06% of the stock is currently owned by company insiders.

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.