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Analogies for Data I/O (DAIO):

• Teradyne for chip programming. (Both are leading providers of specialized, automated equipment critical for the manufacturing and functionality of electronic devices, with Teradyne focusing on testing and Data I/O on programming and security provisioning of integrated circuits.)

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• Automated Device Programming Systems: These high-volume systems are designed for efficient and reliable programming of microcontrollers, flash memory, and other programmable devices in manufacturing environments.
• Manual/Offline Device Programming Systems: These versatile programming solutions cater to engineering, prototyping, and low-volume production needs, offering flexibility and broad device support.
• Programming Software (e.g., TaskLink): This software suite manages the entire device programming process, including data preparation, process control, traceability, and integration with manufacturing execution systems.
• Security Provisioning Solutions (e.g., SentriX): These solutions enable secure programming of devices by injecting unique security keys, certificates, and other critical data during the manufacturing process to protect against counterfeiting and unauthorized access.
• Programming Adapters & Socket Cards: These hardware interfaces connect specific programmable devices to Data I/O's programming systems, ensuring proper electrical contact and data transfer.

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Data I/O (symbol: DAIO) primarily sells to **other companies** (B2B) rather than directly to individuals. Their solutions involve device programming systems and services used by manufacturers to program integrated circuits (flash, microcontrollers, and logic devices) for various electronic products.

While Data I/O's SEC filings indicate a concentration of revenue from a limited number of top customers, they **do not publicly disclose the specific names of these major customer companies**. Therefore, a list of named customer companies and their symbols cannot be provided.

However, Data I/O's customer base consists of the following types of companies, operating in various industries:

• Original Equipment Manufacturers (OEMs): Companies that design and manufacture their own products, incorporating programmed electronic components.
• Contract Electronics Manufacturers (CEMs) or Electronic Manufacturing Services (EMS) Providers: Companies that provide manufacturing services for OEMs, including the programming of components.
• Semiconductor Manufacturers: Companies that produce the integrated circuits themselves, often using Data I/O's solutions for initial programming or testing.

These customers operate across a range of industries, including:

• Automotive
• Industrial
• Medical
• Internet of Things (IoT) / 5G
• Consumer Electronics

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William Wentworth President and CEO

William "Bill" Wentworth was appointed President of Data I/O on September 1, 2024, and CEO on October 1, 2024, after serving on the company's Board of Directors since May 2023. He brings over 35 years of industry experience, including extensive involvement with private equity and M&A. Wentworth previously served as CEO of Source Electronics, a leader in programming and test services. Under his leadership, Source Electronics was sold to HIG Capital in 2001 and subsequently to Avnet in 2008, generating significant investor returns. More recently, as President and owner of Wentworth Advisors, he consulted in the programming, IT, and private equity sectors.

Charlie DiBona Vice President and CFO

Charlie DiBona joined Data I/O in August 2025 as Vice President of Finance and CFO. He has nearly two decades of experience in financial reporting, resource optimization, IT system implementation and management, capital markets, and merger and acquisition functions. DiBona previously held a strategic role as General Manager, Strategy and M&A, Server and Tools Business at Microsoft. His career also includes CFO and financial operations positions at various technology companies and experience as an equity research analyst covering the enterprise software sector. Earlier in his career, he worked in private equity, focusing on portfolio management and analysis of public and private companies. He holds an MBA from Harvard Business School and an A.B. in Economics, Magna Cum Laude, from Harvard University.

Monty Reagan Vice President, Sales & Marketing

Monty Reagan was appointed Vice President, Sales & Marketing, for Data I/O in November 2024, filling a position that had been vacant for over 10 years. He is a semiconductor and electronics industry veteran, having previously worked at companies such as Avnet, BPM Microsystems, DataTrans Solutions, and Source Electronics, where he collaborated with Bill Wentworth.

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Here are the key risks to Data I/O's business:

1. Technological Obsolescence: Data I/O operates in the rapidly evolving semiconductor and electronics manufacturing industry, where continuous technological advancements pose a significant risk of rendering existing products or services obsolete. The company focuses on advanced programming and security deployment for various semiconductor devices, meaning its solutions must constantly adapt to new generations of chips and evolving industry standards to remain competitive.
2. Market Demand Fluctuations and Economic Conditions: Data I/O is susceptible to changes in global economic conditions and fluctuations in market demand from its customers. The company has reported "soft bookings and revenue" and "pushouts" in capacity additions from existing customers due to selective spending and "divergent business conditions" across sales regions, including weakness in automotive electronics. Broader economic instability and inflationary pressures can also impact the business.
3. Cybersecurity Risks: The company faces ongoing cybersecurity threats, which could materially affect its business, financial condition, or results of operations. Data I/O has acknowledged these risks in its SEC filings and recently experienced a ransomware incident in August 2025, although it reported the incident was contained and remediated. Such incidents can lead to operational disruptions, compromised data, and financial losses.

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Data I/O (symbol: DAIO) operates in the addressable markets of device programming and secure provisioning for various electronic devices.

The addressable markets for Data I/O's main products and services are sized as follows:

• Universal Programmers Market: The global universal programmers market size was recorded at $4,478.16 million in 2021 and is projected to reach $6,700.7 million by the end of 2025. This market is expected to grow at a Compound Annual Growth Rate (CAGR) of 10.6% from 2025 to 2033, reaching $15,002.4 million by 2033.
  • For 2025, the North American universal programmers market holds an estimated 34.19% of the global market share.
  • For 2025, the European universal programmers market holds an estimated 24.72% of the global market share.
• Automotive Electronics Programming System Market: The global automotive electronics programming system market is projected to reach $10.8 billion in 2025. This market is expected to maintain a CAGR of 6.5% from 2025 to 2033.
• Industrial IoT Market (relevant for security provisioning): The global Industrial IoT market size was valued at USD 276.6 billion in 2025 and is expected to reach USD 964.16 billion by 2035, expanding at a CAGR of approximately 13.3% during the forecast period of 2026-2035. North America is anticipated to hold the largest market share in the Industrial IoT market, projected to account for 36.7% by 2035.

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Expected Drivers of Future Revenue Growth for Data I/O (DAIO)

Over the next 2-3 years, Data I/O (DAIO) anticipates several key drivers for its future revenue growth:

1. Expansion within the Automotive Electronics Market: Data I/O is heavily focused on the automotive electronics sector, which currently represents a significant portion of its bookings, reaching 78% in Q3 2025 compared to 59% in 2024. The automotive semiconductor market is projected to triple by 2030, presenting a substantial growth opportunity for Data I/O. This growth is further accelerated by the increasing adoption of electric vehicles (EVs), which typically incorporate two to three times more silicon content than traditional internal combustion engine vehicles, thereby boosting demand for programming solutions.

2. New Product Introductions and Platform Innovation: The company is enhancing its product portfolio through the introduction of next-generation programmers and a refresh of its manual product lines. Notably, Data I/O launched its new Unified Programming Platform Strategy in Q1 2025, which includes updated manual programmers such as the LumenX-M8 and FlashCORE III-M4. Demand for the PSV 7000 automated programming system has also been a driver of global bookings. Furthermore, Data I/O is developing solutions for future high-density memory technologies, including support for up to 1TB of Universal Flash Storage (UFS), expected by 2027, driven by advancements in AI applications.

3. Growth in Security Provisioning through the SentriX Platform: Data I/O sees significant potential in the security market, aiming to address 10% to 15% of a 30 billion-unit microcontroller market with its SentriX platform. This platform is critical for securing the supply chain, preventing cloning, ensuring regulatory compliance, and protecting revenue for various electronic products, including those in the automotive and industrial sectors.

4. Expansion into New Markets and Services: The company is actively exploring and pursuing new markets and business opportunities, particularly in services, which it identifies as a "billion-dollar market." The new platform being developed by Data I/O is designed to support these embedded opportunities and service expansion initiatives, indicating a strategic move to diversify its revenue streams beyond traditional programming equipment.

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Share Repurchases

• Data I/O has executed three share buybacks since 2012, returning $8.1 million to shareholders.
• As of December 30, 2024, there were no significant dollar amounts reported for payments made for the repurchase of common stock or equity.

Share Issuance

• The number of Data I/O's outstanding shares increased by 2.01% in one year as of late 2025.
• As of December 30, 2024, no significant proceeds were reported from the issuance of common stock.
• Data I/O made no sales of unregistered securities in 2023.

Capital Expenditures

• Capital expenditures for Data I/O were reported as $467,000 as of December 30, 2024.
• In 2024, the company experienced lower demand for manufacturing capacity and spending on capital equipment, particularly in the automotive segment.
• Data I/O anticipates continued investment in 2025 to deliver solutions that support customers and accelerate their time to market, with a focus on leveraging research and development investments in high-density flash memory applications.