Data I/O Corporation

Data I/O Corporation announced preliminary financial results for the second quarter ended June 30, 2026, with net sales of $5.2 million, a 59% sequential increase from $3.3 million in the first quarter. Gross margin as a percentage of sales rose to 57.1% from 49.5% in the prior quarter. Cash at June 30, 2026 was $10.8 million, up from $5.7 million on March 31, 2026, reflecting net cash proceeds from a $9 million direct investment announced in May 2026. The company is rescheduling the release of its full second quarter financial results and the corresponding investor conference call to August 12, 2026, pending completion of an independent accounting and valuation analysis related to that investment.

Data I/O has entered into a non-binding letter of intent to acquire the embedded software security intellectual property and related assets from IAR. The acquisition would expand Data I/O's security provisioning platform into the embedded design phase and support compliance with the EU Cyber Resilience Act. Both companies will continue their existing commercial partnership after the transaction. Shares of Data I/O rose 4.60%.

Data I/O Corporation has closed a $9 million investment from two institutional investors. The financing includes the issuance of 869,840 shares of common stock, convertible debentures with an aggregate principal amount of approximately $6.8 million, and warrants to purchase up to 1,080,000 shares of common stock at an exercise price of $3.00 per share. The convertible debentures bear interest at 4.0% per annum and are convertible into Series B preferred stock, which in turn converts into common stock at an initial price of $2.50 per share. The company intends to use the net proceeds for working capital, general corporate purposes, and potential strategic acquisitions. Ladenburg Thalmann & Co. served as exclusive placement agent, with Benchmark, a StoneX company, as financial advisor.