Data I/O (NASDAQ:DAIO) Releases Earnings Results, Misses Estimates By $0.18 EPS

Data I/O (NASDAQ:DAIO) released its quarterly earnings data on Thursday. The electronics maker reported ($0.27) earnings per share for the quarter, missing the consensus estimate of ($0.09) by ($0.18), Zacks reports. The firm had revenue of $3.98 million for the quarter, compared to analyst estimates of $5.41 million. Data I/O had a negative net margin of 23.19% and a negative return on equity of 29.44%.

Here are the key takeaways from Data I/O’s conference call:

• The company says its multi-year transformation is ~one year ahead of schedule, with investments in its core platform, cloud migration, cybersecurity remediation and company-wide AI deployment to drive faster product development and operational efficiency.
• Data I/O is shifting from a programming CapEx focus to a larger data provisioning addressable market, announcing a strategic partnership with IAR for security provisioning and citing early customer demand from the build-out of edge AI infrastructure.
• Financials showed near-term weakness — Q4 net sales of $4.0M (down from $5.2M), full-year revenue of $21.5M, bookings down, gross margin compression (Q4 43% vs. 52.2% prior year) and a full-year net loss of $5.0M, with cash declining to $7.9M.
• Recurring revenue (consumables, adapters and services) provided stability at 58% of 2025 revenue, deferred revenue rose to about $1.5M, the company remains debt-free and targets an additional $1M of run-rate cost reductions to improve margins.
• Management has an active, disciplined M&A pipeline to expand into programming services/tests and is exploring non‑equity financing options; a shelf registration gives flexibility but there is no immediate plan to issue shares.

Data I/O Stock Down 1.4%

DAIO traded down $0.04 during trading on Friday, reaching $2.77. 34,303 shares of the stock traded hands, compared to its average volume of 26,535. The stock’s 50-day moving average is $3.08 and its 200 day moving average is $3.08. Data I/O has a 12 month low of $1.88 and a 12 month high of $3.57. The stock has a market capitalization of $26.01 million, a PE ratio of -5.13 and a beta of 1.08.

Wall Street Analyst Weigh In

A number of analysts have recently commented on the company. Zacks Research raised Data I/O to a “hold” rating in a research note on Tuesday, November 4th. LADENBURG THALM/SH SH started coverage on shares of Data I/O in a report on Monday, February 2nd. They issued a “buy” rating and a $5.00 price objective for the company. Weiss Ratings reissued a “sell (d-)” rating on shares of Data I/O in a report on Wednesday, January 21st. Singular Research upgraded shares of Data I/O to a “strong-buy” rating in a research report on Friday, October 31st. Finally, Westpark Capital reiterated a “buy” rating and set a $5.22 price target on shares of Data I/O in a report on Friday, October 31st. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $5.11.

Institutional Investors Weigh In On Data I/O

Several institutional investors and hedge funds have recently made changes to their positions in DAIO. DRW Securities LLC acquired a new stake in Data I/O during the fourth quarter worth approximately $37,000. NewEdge Advisors LLC grew its position in shares of Data I/O by 45.4% during the 2nd quarter. NewEdge Advisors LLC now owns 22,402 shares of the electronics maker’s stock worth $69,000 after buying an additional 7,000 shares during the period. Steward Partners Investment Advisory LLC grew its position in shares of Data I/O by 24.5% during the 4th quarter. Steward Partners Investment Advisory LLC now owns 43,472 shares of the electronics maker’s stock worth $138,000 after buying an additional 8,555 shares during the period. Finally, Kovack Advisors Inc. increased its stake in shares of Data I/O by 2.2% in the 4th quarter. Kovack Advisors Inc. now owns 268,906 shares of the electronics maker’s stock valued at $852,000 after acquiring an additional 5,675 shares in the last quarter. Institutional investors own 36.95% of the company’s stock.

About Data I/O

Data I/O Corporation is a provider of device programming solutions for semiconductor and microcontroller manufacturers, test houses, contract manufacturers and electronics design engineers. The company’s product portfolio includes universal and site-specific programmers, automated programming systems and software tools that enable high-volume production, development and field programming of non-volatile memories and microcontrollers. Data I/O’s solutions are designed to support a wide range of programmable devices, including Flash, EPROM, EEPROM, PLDs, FPGAs and automotive-grade microcontrollers.

The company’s flagship technologies include its high-speed FlashCORE III programming engines and the SB-OS-A automated handling system, which together streamline production workflows by providing scalable, multi-site programming capabilities.