Investment Thesis
DATA I/O CORP is operationally distressed with operating losses of -$3.1M against $3.2M revenue and deteriorating EPS (-64.7% YoY). The company is burning cash operationally (-$2.2M FCF) with declining revenue, indicating fundamental business challenges. While near-term survival is supported by $5.7M cash and zero debt, the burn rate and negative growth trajectory point toward unsustainability without major operational restructuring.
Strengths
- Strong liquidity position with 2.64x current ratio and 1.55x quick ratio
- Minimal leverage with 0.00x debt-to-equity and no long-term debt obligations
- Adequate cash runway of $5.7M provides 2.5+ years at current burn rate
Risks
- Severe operating losses with -96.7% operating margin and -$3.1M operating income on $3.2M revenue
- Negative free cash flow of -$2.2M and declining revenue (-1.2% YoY) with accelerating losses (EPS -64.7% YoY)
- Zero insider Form 4 filings in 90 days signaling lack of management confidence
- Gross margin of 49.5% insufficient to cover SG&A and operating expenses, indicating structural unprofitability
- Unsustainable burn rate with no path to profitability evident in current business model
Key Metrics to Watch
- Operating cash flow trend and cash depletion rate
- Revenue stabilization and gross margin sustainability
- Quarterly operating loss magnitude and management actions toward cost restructuring
Financial Metrics
Revenue
3.3M
Net Income
-3.2M
EPS (Diluted)
$-0.34
Free Cash Flow
-2.2M
Total Assets
17.6M
Cash
5.7M
Profitability Ratios
Gross Margin
49.5%
Operating Margin
-96.7%
Net Margin
-97.5%
ROE
-30.3%
ROA
-18.0%
FCF Margin
-68.8%
Balance Sheet & Liquidity
Current Ratio
2.64x
Quick Ratio
1.55x
Debt/Equity
0.00x
Debt/Assets
0.0%
Interest Coverage
N/A
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-16T06:11:34.545637 |
Data as of: 2026-03-31 |
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