Company Overview
Data I/O Corporation operates as a technology entity focused on the design, manufacture, and sale of programming and security deployment systems and services specifically for electronic device manufacturers across the United States, Europe, and international markets. The company functions within the broader Technology sector, specifically the Electronic Components industry, positioning itself as a specialized supplier of essential infrastructure for device programming rather than a consumer-facing brand. Currently, the company maintains a market capitalization of $24.98M and reports annual revenue of $21.50M, with an employee count listed as N/A. These financial figures indicate that Data I/O Corporation operates on a small-cap scale, suggesting it serves a niche segment of the electronic components market rather than competing in high-volume, mass-market consumer electronics production.
Financial Health
The company reported revenue of $21.50M over the trailing twelve months, yet recorded a net income loss of $4,986,000 and an EBITDA of $-4,624,000. The substantial gap between positive revenue and significant negative net income reveals a cost structure where operating expenses, including potentially high research and development or administrative costs, are consuming the majority of gross profits before reaching the bottom line. While free cash flow data is not available, the company holds $7.90M in cash against total debt of $1.41M, providing a net cash position that offers a buffer for operations despite the reported EBITDA loss. Profitability is challenged by a gross margin of 49.3%, an operating margin of -62.8%, and a profit margin of -23.2%, indicating that while the core product pricing retains nearly half of its value, overhead costs are eroding operating profits by over 60% of revenue. The balance sheet is technically leveraged with a debt-to-equity ratio of 10.25, yet the low absolute debt level relative to cash reserves suggests the leverage is minimal in practical terms. Liquidity is robust, evidenced by a current ratio of 3.46, which implies the company holds more than three times the current assets necessary to cover its short-term liabilities without immediate distress. Return on Equity stands at -31.8% and Return on Assets is -14.2%, metrics that reveal management is currently unable to generate positive returns on the capital invested by shareholders or utilized in asset operations, reflecting the current phase of financial performance.
Valuation Assessment
Valuation metrics present a mixed picture, with a trailing P/E ratio listed as N/A due to the lack of positive net income, while the forward P/E is calculated at 44.33. The disparity between a non-existent trailing P/E and a high forward P/E of 44.33 implies that the market is pricing in an anticipated turnaround in earnings or is valuing the company based on future revenue expectations rather than current profitability. The price-to-book ratio is 1.81, indicating that the market values the company at a premium of 81% over its book value, suggesting investors are willing to pay more for the intangible assets or future growth potential despite current losses. Alternative valuation measures show a price-to-sales ratio of 1.16 and an EV/EBITDA of -4.00, which suggests the stock is trading at a valuation roughly equivalent to its annual sales, a common metric for unprofitable technology firms, while the negative EV/EBITDA confirms the company is currently generating losses before interest, taxes, depreciation, and amortization. The 52-week trading range spans from a low of $1.88 to a high of $3.57, meaning the current price sits within this established volatility band, though the specific current price is not provided to calculate the exact percentage deviation from the highs. The stock exhibits a beta of 1.09, which indicates that the stock's price volatility is slightly higher than the broader market, moving approximately 9% more than the market index during periods of fluctuation.
Growth & Income
Revenue growth year-over-year is -23.2%, while earnings growth is N/A due to the negative net income position. The negative revenue growth indicates a contraction in the top line, which naturally precludes positive earnings growth, implying the company is currently in a phase of market share adjustment or revenue decline rather than expansion. As a non-dividend payer, the company pays a dividend yield of N/A with a payout ratio of 0.0%, meaning all available earnings are theoretically retained, though in this instance, the earnings are negative, and the company reinvests capital or utilizes its cash reserves for operations rather than distributing income to shareholders. The overall growth and income profile is characterized by a contraction in revenue and a complete absence of dividend income, relying instead on the company's cash balance of $7.90M to fund operations during this period of negative earnings and revenue decline.