Data I/O Corporation reported a slight decline in financial performance for the fiscal year ending December 31, 2025, with net sales totaling $21.5 million, down 1.2% from $21.8 million in 2024. The company experienced a 17% decrease in bookings, which fell to $18.6 million compared to $22.5 million in the previous year. This decline was attributed to ongoing uncertainties in the automotive electronics sector, which represented 64% of total bookings, and a general slowdown in customer capacity expansion. Despite these challenges, the company noted a shift towards more stable revenue streams, with consumable adapters and services accounting for 58% of total revenue.
In terms of profitability, Data I/O reported a net loss of $5.2 million for 2025, compared to a loss of $3.1 million in 2024. The gross margin decreased to 49.3% from 53.3% in the prior year, primarily due to lower sales volume and reduced absorption of labor and overhead costs. Operating expenses increased to $15.7 million, driven by higher selling, general, and administrative costs, which included legal and accounting fees related to a ransomware incident that occurred in August 2025.
Strategically, Data I/O underwent significant organizational changes, including the appointment of Charles DiBona as Chief Financial Officer in August 2025, following the departure of Gerald Ng. The company also launched the next-generation LumenX2 programming platform at the productronica 2025 tradeshow, which is expected to enhance its market position. Additionally, Data I/O is focusing on diversifying its revenue model to reduce reliance on capital equipment sales, which have historically been cyclical.
Operationally, the company reported a total employee count of 97 as of December 31, 2025, with a significant portion of its workforce located outside the U.S. The company is also implementing a new enterprise resource planning (ERP) system, Acumatica, to improve operational efficiency and financial reporting capabilities. Despite the challenges faced in 2025, management expressed optimism about the future, citing early indicators of customer engagement and a strategic focus on the expanding data provisioning market, particularly in relation to Edge AI applications.
Looking ahead, Data I/O has established a framework for organic revenue growth in 2026, aiming for a return to positive operating cash flow. The company has also filed a shelf registration statement to issue up to $20 million in equity securities, providing financial flexibility for potential strategic initiatives, including acquisitions. Management remains confident that the progress made in 2025 positions the company well for growth in the coming year.
About DATA I/O CORP
Data I/O Corporation is a global leader in device programming and security deployment solutions for electronics manufacturing. It provides automated and manual systems, software, and services to program and protect semiconductor devices used in automotive, IoT, industrial, and consumer electronics. Its offerings enable secure device provisioning, IP protection, and process automation for high-volume manufacturers worldwide, emphasizing quality, security, and technological innovation.
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