Data I/O Corporation Reports Second Quarter 2025 Results

Data I/O Corporation, a leading global provider of advanced security and data deployment solutions for microcontrollers, security ICs, and memory devices, has released its financial results for the second quarter ended June 30, 2025. The company has reported its second consecutive quarter of sequential bookings growth and is preparing to scale through revenue growth and market expansion.

Financial Highlights

For the second quarter of 2025, Data I/O Corporation reported net sales of $5.9 million, a decrease from $6.2 million in the first quarter of 2025 but an increase from $5.1 million in the second quarter of 2024. The company experienced a net loss of $742,000 or $0.08 per share, compared to a net loss of $797,000 or $0.09 per share in the prior year period and a net loss of $382,000 or $0.04 per share in the first quarter of 2025.

Gross margin as a percentage of sales was 49.8%, down from 51.6% in the first quarter of 2025 and 54.5% in the second quarter of 2024. Operating expenses for the second quarter were $3.8 million, up from $3.6 million in the first quarter of 2025 and $3.3 million in the prior year period. Adjusted EBITDA, excluding equity compensation, was ($437,000) in the second quarter of 2025, compared to ($98,000) in the first quarter of 2025 and $3,000 in the second quarter of 2024.

Business and Operational Highlights

Data I/O Corporation received a significant automated programming system order late in the second quarter from a leading global automotive EV supplier. The order, valued at over $1.4 million, was for 10 PSV automated programming systems with the Lumen®X programming platform. This order reflects the company's robust support for UFS 4.0 technology and its continued R&D investments to meet the growing market for high-density flash applications.

Automotive electronics represented 66% of second quarter 2025 bookings, compared to 59% for all of 2024. Consumable adapters and services accounted for 50% of total revenue, providing a stable base of recurring revenue.

Strategic Initiatives and Corporate Developments

Data I/O Corporation is on a rapid pace of innovation, having introduced its new Unified Programming Platform Strategy in the first quarter of 2025. The company also received its first order for UFS 4.0 support in the second quarter, marking a critical technology milestone. The company is preparing for the next generation of high-density memory technology, supporting up to 1TB of UFS memory expected in the market by 2027.

Management's Perspective

William Wentworth, President and CEO of Data I/O Corporation, commented on the quarter, highlighting the company's increased bookings and significant order from a leading global automotive EV supplier. He emphasized the importance of continued R&D investments and the company's ability to differentiate its technology in the growing market for high-density flash applications. Wentworth expressed confidence in the company's long-term growth prospects, driven by its technology leadership and innovation.

Future Outlook

Data I/O Corporation is set to formally announce its long-term product roadmap later this year. The company is preparing for the next generation of high-density memory technology and expects meaningful long-term growth driven by advancements in AI applications and the increasing complexity of programming requirements for semiconductor technologies.

SEC Filing: DATA I/O CORP [ DAIO ] - 8-K - Jul. 25, 2025