Data I/O (DAIO) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 was $6.2 million, up 19% sequentially and 1.3% year-over-year, reversing negative trends from 2024.

• Achieved growth in net income and EBITDA, driven by operational efficiency, cost reductions, and backlog deliveries in the Americas and Europe.

• Automotive electronics bookings increased to 66% of total, up from 59% in 2024.

• Strategic focus on new product roadmap, partnerships with semiconductor companies, and diversification beyond automotive.

• Resilient supply chain with dual manufacturing in the US and China, with potential expansion in Europe.

Financial highlights

• Net sales were $6.2 million, up $1 million from Q4 2024 and $100,000 from Q1 2024.

• Gross margin was 52% (51.6% rounded), comparable to 53% for full year 2024 and down from 52.8% a year ago.

• Operating expenses were $3.6 million, down 11% sequentially and 12% year-over-year, aided by staff reductions.

• Net loss was $382,000, improved from a $1.2 million loss in Q4 2024 and $807,000 loss in Q1 2024.

• Adjusted EBITDA nearly break-even at a loss of $98,000, improved from a $364,000 loss in Q1 2024.

Outlook and guidance

• Cautious outlook for Q2 due to ongoing tariff, trade, and inflationary pressures.

• Management expects revenue growth through market diversification and enhanced sales processes.

• Sufficient liquidity is expected to fund operations and capital requirements for at least the next year.

• Continued focus on cost control, efficiency, and strategic investments to support growth.

• New product roadmap and semiconductor partnerships expected to contribute to growth in upcoming quarters.