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

Data I/O (NASDAQ:DAIO) released its earnings results on Thursday. The electronics maker reported ($0.27) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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 company had revenue of $4.87 million during 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 Price Performance

Shares of NASDAQ DAIO opened at $2.64 on Friday. Data I/O has a fifty-two week low of $2.16 and a fifty-two week high of $4.49. The stock’s 50-day simple moving average is $2.70 and its 200-day simple moving average is $2.96.

Analysts Set New Price Targets

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

Insiders Place Their Bets

In other Data I/O news, major shareholder Red Oak Partners, Llc purchased 373,133 shares of the stock in a transaction that occurred on Tuesday, October 20th. The stock was purchased at an average cost of $2.68 per share, with a total value of $999,996.44. Following the completion of the acquisition, the insider directly owned 242,934 shares of the company’s stock, valued at $651,063.12. This trade represents a -286.59% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 4.06% of the stock is currently owned by insiders.

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.