What is the market's earnings forecast for Data I/O next quarter?

What is Data I/O's latest dividend and current dividend yield?

What is Data I/O's gross profit margin?

What does Data I/O do and what are its main business segments?

Did Data I/O beat or miss consensus estimates last quarter?

What is the revenue and EPS growth rate for Data I/O year over year?

What factors drove the changes in Data I/O's revenue and profit?

What were the key takeaways from Data I/O's earnings call?

- **Next-gen Platform Launch**: Automotive-grade UFS3.0+ programming systems set for 2027 release, targeting 1TB flash adoption.
- **Services Expansion**: $1B+ services market opportunity via strategic acquisitions, starting with carve-outs in Q1 2026.
- **Margin Optimization**: Custom pricing and direct customer engagement to drive 55%+ gross margins.
- **EV Market Shifts**: Asia EV component makers resilient (+27% YoY), while Europe automotive sector down 50-60% YoY.
- **UFS Flash Leadership**: Only company with proven offline programming for high-density flash, 2027 adoption rates >50%.


**【CEO Summary Section】**
- Launched a next-generation programming platform at productronica, targeting high-density flash and automotive markets.
- Emphasized partnerships with large test companies to embed Data I/O technology in their solutions.
- Focused on services expansion through potential acquisitions, aiming to leverage existing platform expertise.
- Highlighted challenges in the automotive sector due to EV policy changes and supply chain disruptions, but optimistic about UFS 3.0 adoption in 2027.

**【CFO Financial Commentary】**
- Q3 revenue $5.4M (-11% YoY) with 50.7% gross margin (up 0.9pts QoQ due to higher-margin automated systems sales).
- Operating expenses $4.1M (+27% YoY) driven by one-time costs ($585K) for cybersecurity, IT upgrades, and executive transitions.
- Backlog $2.7M (flat QoQ) with 76% of revenue from capital equipment.
- Gross margin initiatives include pricing optimization, supply chain efficiency, and direct customer engagement.

**【Q&A Key Highlights】**
- **Sales Cycle & Trade Policy**: CEO noted 3-5 year sales cycles for new silicon technologies, with EV subsidies driving Asia growth vs. Europe's weakness.
- **Margin Expansion**: CFO targeting 55%+ gross margins through custom pricing, while CEO expects services business to yield 52-58% margins.
- **Services Strategy**: Acquiring carve-outs to establish programming services division, leveraging existing software/hardware IP.
- **EV Market Dynamics**: Asia EV component makers resilient, while Europe automotive sector down 50-60% YoY due to demand slowdown.
- **UFS Flash Growth**: 2027 adoption of 1TB UFS3.0+ will require offline programming capabilities, positioning Data I/O as leader.


Data I/O Corporation (DAIO) Q3 2025 Earnings Call Transcript

- **Revenue Resilience**: Q2 bookings +26% vs. Q1, driven by China EV order despite global tariff headwinds.
- **UFS Breakthrough**: 100% test yield achieved on new socketing tech; targeting 99.8%+ UFS 3.1 yield by Q3.
- **Margin Recovery**: Q2 gross margin 49.8% (down 1.8pts vs. Q1) due to system mix. Q3-Q4 diversification to stabilize margins.
- **Strategic Investments**: $480K one-time costs for platform, IT, and leadership transitions; $165K for UFS/NVMe R&D.
- **Growth Catalysts**: 6 global product launches in Q3-Q4; 15+ manual system orders pending post-launch.

**【CEO Summary Section】**
- **Bookings Growth**: Sequential bookings increased from Q1 ($4.6M) to Q2 ($5.8M), driven by a large automotive order in China. Automotive segment represented 66% of Q2 bookings, up from 59% in 2024.
- **Core Platform Investment**: $165K invested in new universal programming platform to address UFS and NVMe complexity. Targeting 99.8%+ yield on UFS 3.1 by Q3, with 14% CAGR for UFS/NVMe (twice semiconductor market growth).
- **Product Launches**: 6 major events in Q3-Q4 (China, Germany, India, Mexico) to showcase new manual systems and UFS/NVMe solutions. 15+ potential manual system orders pending post-launch.
- **Tariff Impact**: Europe and Americas constrained by trade uncertainties, but China EV sector strong. Korea rep lost $3.5M in 2025 due to tariffs.
- **Gross Margin Outlook**: Q2 margin 49.8% (vs. 51.6% Q1), driven by low-margin system mix. Q2-Q3 system mix diversification expected to improve margins.

**【CFO Financial Commentary】**
- **Revenue**: Q2 net sales $5.0M (down 20% vs. Q1, +1.9% vs. Q2 2024). Q1 elevated by a large 2024 order. Q2 backlog $2.8M (down $200K vs. Q1).
- **Gross Margin**: 49.8% (vs. 51.6% Q1, 54.5% 2024), due to low-margin system mix. Direct material costs stable.
- **Operating Expenses**: $3.8M (up 5.6% vs. Q1, +15% vs. 2024). Includes $480K one-time costs: $165K platform investment, $145K HR/CFO transition, $170K IT/sales strategy.
- **Cash Flow**: Q2 cash use minimal ($10M ending vs. $10.3M in Q1). Onetime expenses reduced cash by $480K.
- **Liquidity**: $15.6M working capital, no debt.

**【Q&A Key Highlights】**
- **One-Time Expenses**: $480K in Q2 split across G&A (IT, HR, consulting). Expected to taper post-CFO transition in Q3.
- **UFS Yield Progress**: 100% test yield achieved on new socketing tech, but intermittent issues remain. Targeting 99.8%+ by Q3.
- **Gross Margin Recovery**: Q2 margin decline due to 6 low-margin systems shipped. Q3-Q4 mix of 3000/5000/7000 systems expected to stabilize margins.
- **Diversification Efforts**: 15+ manual system orders pending. Field service team to generate revenue via milk runs and training. Salesforce Service Cloud implementation in Q4.
- **EV Order Context**: $1.4M China EV order added to existing 20-system customer. Systems configured for UFS 4.0, reflecting customer confidence in Data I/O's yield solution.


Data I/O Corporation (DAIO) Q2 2025 Earnings Call Transcript

- **Revenue Recovery**: Q1 2025 revenue up 19% sequentially, driven by Americas/Europe growth despite 40% Asia decline.
- **Gross Margin Stability**: 52% gross margin maintained through cost controls and system sales mix.
- **Operational Efficiency**: $300k annualized expense savings from staff reductions, net loss narrowed 68%.
- **Semiconductor Expansion**: Strategic partnerships progressing, with Q2 updates on new product roadmaps for UFS/NVMe protocol compliance.
- **Cash Strength**: $10.5 million cash on hand, no debt, and 1.5% QoQ cash growth.


**【CEO Summary Section】**
- Q1 2025 revenue reached $6.2 million, up 19% sequentially and 1.6% year-over-year, driven by recoveries in Americas (+32%) and Europe (+44%).
- Tariffs and trade uncertainties caused a 40% decline in Asia revenue compared to Q1 2024.
- Automotive segment accounted for 66% of Q1 bookings, up from 59% in 2024, with EV market strength in China.
- New product launches at IPC APEX (LumenX-M8, FlashCORE III-M4) generated 39% increase in qualified leads and 18% new contacts YoY.
- Strategic semiconductor partnerships are progressing, with potential Q2 updates on new product roadmaps and collaborations.

**【CFO Financial Commentary】**
- Gross margin stabilized at 52%, down slightly from 53% in 2024 due to higher system revenue mix.
- Operating expenses decreased 11% QoQ to $3.6 million, with $300k annualized savings from staff reductions.
- Net loss narrowed to $382k vs. $1.2 million Q4 2024, driven by higher revenue and cost controls.
- Cash position improved to $10.5 million, up 1.5% QoQ, with no debt and $16 million working capital.
- Backlog declined 18% to $2.9 million due to delayed Asia orders.

**【Q&A Highlights】**
- Recurring revenue mix (adapters/services) decreased to 46% (from 50% 2024), but system sales growth offset this shift.
- Tariff mitigation strategies include shifting manufacturing/logistics, with ongoing customer engagement to manage delays.
- April socket adapter sales remain steady, indicating continued usage despite cautious CapEx.
- Semiconductor partnerships focus on UFS/NVMe protocol compliance, with potential 2027+ terabyte memory programming opportunities.


Data I/O (DAIO)-24 Apr 25-2025 Q1 Earnings call transcript

- **Revenue Challenges**: Q4 2024 revenue down 25% to $5.2 million, driven by automotive sector weakness.
- **Geographic Growth**: Asia revenue up 14%, offsetting declines in Americas and Europe.
- **Operational Efficiency**: $250k material cost savings, 7% OpEx reduction, and 50% recurring revenue stability.
- **Strategic Shifts**: Focusing on service providers (+20% adapter activity) and next-gen programming platforms.
- **Financial Health**: $10.3 million cash reserves, despite FY2024 net loss of $3.1 million.
- **Tariff Mitigation**: Global supply chain diversification and strategic tech investments to reduce risks.

**【CEO Summary Section】**
- Introduced a consultative sales approach, reducing sales cycle from 140 to 70 days.
- Focused on expanding into non-automotive markets, such as service providers and contract manufacturers.
- Emphasized the importance of algorithm library growth and device request handling for market share.
- Highlighted political and supply chain uncertainties, including U.S.-China trade tensions and automotive industry slowdowns.
- Announced strategic investments in next-gen programming platforms and AI-driven operational efficiency.

**【CFO Financial Commentary】**
- Q4 2024 revenue: $5.2 million (-25% YoY), Full Year 2024: $21.8 million (-22% YoY).
- Asia revenue growth: 14%, Recurring revenue: 50% of total, Backlog: $3.5 million (+$700k YoY).
- Gross margin: 52-53% (down from 58% in 2023) due to lower volume absorption.
- Operating expenses: $14.6 million (-7% YoY), with $620k one-time Q4 charges for restructuring and tech investments.
- Net loss: $1.2 million (Q4) and $3.1 million (FY2024), despite $10.3 million cash reserves.

**【Q&A Key Highlights】**
- **Tariff Mitigation**: Utilizing global manufacturing footprints, component diversification, and duty recovery programs.
- **Sales Momentum**: Q1 bookings improved vs. Q4, with adapter sales up 49% and service provider activity +20%.
- **Growth Strategy**: Expanding into IoT, consumer electronics, and EV supply chains through service providers.
- **2025 Outlook**: Expect sequential revenue improvement, with cost reductions offsetting one-time expenses.
- **Risk Management**: Preparing for U.S.-China supply chain shifts, with contingency plans for China manufacturing.


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