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- **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

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

DAIO

DAIO fundamentals

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