Data I/O Reports Q3 2026 Results Amid V-TEK Acquisition and Automotive Softness
Data I/O (DAIO) reported third-quarter 2026 net sales of $4.9 million, a decrease from $5.4 million in the prior year due to timing issues with adapter sales. Despite the revenue dip, the company achieved significant gross margin expansion to 58%, up 730 basis points year-over-year, driven by pricing discipline and operational efficiencies including AI adoption. The quarter was defined by the $23 million acquisition of V-TEK, which effectively doubled the company's pro forma revenue to $10 million. While net loss widened to $0.27 per share due to one-time M&A and financing expenses, management highlighted growth in edge AI and robotics markets. The company is currently navigating softness in the automotive sector while managing cash burn through strategic capital raises and a new credit facility.
Tickers: $DAIO
Topics: acquisition earnings report gross margin improvement net loss revenue decline