Data I/O Q3 loss widens as sales decline
DAIO•Data I/O reported Q3 sales of $4.87 million, below the $6.20 million consensus estimate, and a net loss of $2.70 million. Gross margin increased to 58% from 50.7% a year earlier, and the company said it completed its V-TEK acquisition.
1. Quarterly results
Data I/O's Q3 revenue fell year over year to $4.87 million, missing the $6.20 million estimate, while its net loss widened to $2.70 million. Loss per share was $0.27. Gross margin rose to 58% from 50.7% a year earlier; the company attributed the increase to lower-cost units, value-based pricing and operational efficiencies.
2. Acquisition and plans
The company completed its acquisition of V-TEK and expects the deal to double revenues and be accretive to earnings. Data I/O said timing-related softness in consumable adapter sales affected Q3 revenue, while demand for platform equipment had inflected over the past two quarters after a prolonged downturn. It plans to shift its revenue mix toward software and services, optimize costs and invest to improve profitability and support growth.
