Data I/O Corporation, a global leader in advanced programming and security deployment solutions for electronics manufacturing, reported its financial results for the third quarter and nine months ended September 30, 2024. The company operates manufacturing facilities in Redmond, Washington, and Shanghai, China.

For the three months ended September 30, 2024, Data I/O generated total revenue of $5,423 thousand, reflecting a 17.3% increase compared to $4,619 thousand in the same period of 2023. Equipment sales contributed $2,509 thousand (34.3% of total revenue), while adapter sales were $2,005 thousand (10.6% of total revenue). Software and maintenance revenue accounted for $909 thousand (2.0% of total revenue). However, for the nine months ended September 30, 2024, total revenue reached $16,584 thousand, a 21.7% increase from $13,617 thousand in the prior year.

Despite the revenue growth, the company reported a net loss of $307 thousand for Q3 2024, compared to a loss of $53 thousand in Q3 2023. For the nine-month period, the net loss was $1,911 thousand, a significant decline from a net income of $342 thousand in the same period of 2023. Basic and diluted earnings per share for Q3 2024 were $(0.03), compared to $(0.01) in Q3 2023, and for the nine months, they were $(0.21) versus $0.04 in the prior year.

The decline in profitability was attributed to increased uncertainty in the automotive electronics market, which led to lower system shipments in the Americas and Europe. While sales to the automotive market fell short of expectations, the company saw a 29% growth in Asia channel revenue during Q3 2024. Recurring revenue from consumables, software, and services increased by 6%, representing 50% of total year-to-date revenue.

Operating expenses for Q3 2024 were $3.2 million, down 9% from the previous year, due to cost reductions and efficiency improvements. The company maintained a gross margin of 53.9%, slightly up from 53.7% in Q3 2023, despite lower sales volume.

In terms of strategic developments, William Wentworth was appointed as President and CEO, effective October 1, 2024, succeeding Anthony Ambrose. The company also renewed its lease for the Shanghai facility for an additional three years, expiring on October 31, 2027.

As of September 30, 2024, Data I/O reported cash and cash equivalents of $12.4 million, with no debt and a working capital of $17.6 million. The company continues to focus on key engineering programs and expects to fund capital expenditures through existing and internally generated funds.