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.

• Bookings reached $4.6 million, up 11% from the previous quarter but down from $8 million a year ago due to a large prior-year contract.

• Strategic focus on new product roadmap, growth investments, and deepening relationships with semiconductor and microcontroller companies.

• Automotive electronics bookings increased, representing 66% of Q1 2025 bookings.

• Strong demand for engineering, maintenance services, and consumable adapters, with increased customer utilization of existing systems.

Financial highlights

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

• Gross margin was 52% in Q1 2025, 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 for Q1 was $382,000, improved from a $1.2 million loss in Q4 2024 and $807,000 loss in Q1 2024.

• Adjusted EBITDA was nearly break-even at a loss of $98,000, improved from a $364,000 loss a year ago.

• Cash position at quarter-end was $10.5 million, up $159,000 from year-end 2024; no debt.

Outlook and guidance

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

• Continued focus on sales improvement through new go-to-market and product strategies.

• Expense reductions may not continue at the same pace as prior years due to planned investments in growth.

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