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DAIO Nasdaq· Data io Corp
Earnings report Q3 2023

Data I/O Corporation Reports Decrease in Revenue for Q3 2023

Segments of revenue

Data I/O Corporation's net sales for the third quarter of 2023 were $6.6 million, representing a 9% decrease compared to the same period in 2022. The decrease in revenue was primarily due to the resumption of shipping and backlog following the Shanghai COVID shutdown in 2022. However, year-to-date net sales for the third quarter of 2023 were $21.2 million, showing a 25% increase compared to the same period in 2022. This increase was primarily driven by the impacts of the Shanghai COVID shutdown, currency volatility of the US Dollar, semiconductor shortages, and the war in Ukraine. The company's recurring and consumable revenues, including adapter sales, decreased by 22.2% to $1.8 million, while software and maintenance revenues increased by 10.2% to $0.9 million.

Strengths

Despite the decrease in revenue for the quarter, Data I/O Corporation demonstrated resilience in managing its business during the ongoing COVID-19 pandemic. The company's Shanghai operations resumed normalcy early in 2023 after a two and a half month shutdown in 2022. Additionally, the company's supply chain model and remote work capabilities supported its customers during the pandemic.

Challenges

Data I/O Corporation faced softer demand in key markets such as China, Germany, and the United States, resulting in a small loss for the quarter. The impact of the COVID-19 pandemic and geopolitical factors, such as the war in Ukraine, contributed to the challenges faced by the company.

Noteworthy

It is worth noting that the decrease in revenue for the quarter was primarily attributed to the resumption of shipping and backlog following the Shanghai COVID shutdown in 2022. The company also highlighted the impacts of currency volatility, semiconductor shortages, and the war in Ukraine on its revenue performance.

Summary

Data I/O Corporation reported a decrease in revenue for the third quarter of 2023, primarily driven by the resumption of operations following the Shanghai COVID shutdown in 2022. However, the company showed resilience in managing its business during the ongoing pandemic and demonstrated growth in year-to-date net sales. Soft demand in key markets and external factors such as currency volatility and geopolitical challenges posed some weaknesses for the company. Overall, Data I/O Corporation's financial performance in the latest quarter reflects a mixed outcome.

Source documents

Form 10-Q  filed on Nov 13, 2023
91 pages scanned

Reference data

Company financials Q3 revenue 6.9M
Analyst estimates Q3 EPS missed by NaN%
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