Data IO 2025 Q2 Earnings Narrowed Losses Amid Revenue Growth

Data I/O (DAIO) reported its fiscal 2025 Q2 earnings on August 12, 2025, with a 17.5% revenue increase and a modest reduction in per-share losses. The company did not beat expectations nor issue forward guidance, leaving room for cautious optimism. The absence of explicit quantitative forecasts highlights continued uncertainty in the semiconductor and electronics sectors.

Revenue
Data I/O's total revenue grew to $5.95 million in Q2 2025, a 17.5% increase from $5.06 million in the same period the previous year. Automated programming systems contributed $3.32 million, representing a core strength of the business, while non-automated programming systems accounted for $2.63 million. Collectively, the programming systems segment represented the full $5.95 million in revenue, indicating a consistent and concentrated business focus.

Earnings/Net Income
The company narrowed its per-share loss to $0.08 in Q2 2025 from $0.09 in 2024 Q2, marking an 11.1% improvement. Net loss also decreased to $742,000 from $797,000, a 6.9% reduction in losses. While these results indicate some progress, the earnings performance remains negative, signaling ongoing operational challenges.

Price Action
Shares of DAIO have seen modest gains, rising 2.35% in the latest trading day, 1.88% over the most recent week, and 6.12% month-to-date.

Post-Earnings Price Action Review
A 30-day trading strategy of buying DAIO following earnings reports has historically underperformed, with a negative compound annual growth rate of 17.12%. The approach also exhibits a maximum drawdown of 25.38%, underscoring the inherent risks and limited return potential associated with such timing strategies.

CEO Commentary
CEO Dan Durnil highlighted headwinds from reduced capital spending in the semiconductor and electronics manufacturing sectors but expressed confidence in the company's strong customer relationships and differentiated product offerings. Innovation, operational discipline, and strategic R&D investments were emphasized as key priorities for sustaining long-term value.

Guidance
No forward-looking revenue, earnings, or CAPEX guidance was provided during the Q2 earnings call. Management emphasized flexibility and prudence in response to ongoing macroeconomic uncertainties.

Additional News
Over the past three weeks, Data I/O was not involved in any major M&A activity, nor did it announce any executive-level changes or share repurchase programs. While the company continues to focus on its core competencies, particularly in test and verification solutions, it has not pursued significant non-earnings-related strategic moves. The absence of new product launches or major capital commitments suggests a conservative approach in the current uncertain market environment.