Data I/O Q3 loss widens as sales decline 

Overview

• US data programming equipment maker's Q3 revenue fell yr/yr, net loss widened

• Gross margin rose to 58% from 50.7% a year ago

• Company completed V-TEK acquisition, expected to double revenues and be accretive to earnings

Outlook

• Company expects V-TEK acquisition to double revenues and be accretive to earnings

• Data I/O plans to shift revenue mix toward software and services, reducing capital equipment exposure

• Company to focus on cost optimization and investments to improve profitability and support growth

Result Drivers

• ADAPTER SALES SOFTNESS - Co said Q3 revenue was affected by timing-related softness in consumable adapter sales

• PLATFORM DEMAND RECOVERY - Co said demand for platform equipment inflected over past two quarters after prolonged downturn

• GROSS MARGIN IMPROVEMENT - Co attributed higher gross margin to sale of lower-cost units, value-based pricing, and operational efficiencies

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "strong buy"

• The average consensus recommendation for the computer hardware peer group is "buy."

• Wall Street's median 12-month price target for Data I/O Corp is $5.50, about 121.8% above its November 11 closing price of $2.48

Reuters Recommended Reads

• Nov 10 - Datacentrex's unaudited Q3 revenue falls 29%, net loss widens

• Nov 10 - QuickLogic Q3 revenue misses estimates

• Nov 10 - Silicon Labs Q3 revenue beats estimates; suspends guidance

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)