DATA I/O CORP Segments Disclosure
NOTE 13 – SEGMENT INFORMATION
Data I/O operates as a single segment entity, with the sole objective to design, manufacture, and sell programming systems. We operate in three separate locations – Redmond, Washington; Shanghai, China; and Munich, Germany – these locations function as part of a single, integrated business and all operations are strategically aligned to support this objective.
The accounting policies of the programming system segment are the same as those described in the summary of significant accounting policies. The measure of segment assets is reported on the balance sheet as total consolidated assets.
Our Chief Operating Decision Maker (“CODM”) is the President/Chief Executive Officer who reviews the company’s financial performance on a consolidated basis without distinguishing between different business lines or geographic areas for the purpose of making operating decisions, allocating resources and evaluating financial performance. Financial performance is assessed using operating results, actual net income vs. plan, balance sheet fluctuations, and other key performance indicators. Significant single segment expense categories that are provided to the CODM and included in the reported segment operating profits are outlined in the following table:
|
| Year Ended |
| |||||
(in thousands) |
| December 31, 2025 |
|
| December 31, 2024 |
| ||
Net sales |
| $ | 21,500 |
|
| $ | 21,769 |
|
Cost of goods sold |
|
| 10,904 |
|
|
| 10,163 |
|
Gross margin |
|
| 10,596 |
|
|
| 11,606 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
Employee expenses |
|
| 9,213 |
|
|
| 9,715 |
|
Customer acquisition costs |
|
| 1,259 |
|
|
| 1,268 |
|
Professional and outside services |
|
| 2,953 |
|
|
| 2,025 |
|
Occupancy costs |
|
| 980 |
|
|
| 787 |
|
Depreciation and amortization |
|
| 460 |
|
|
| 540 |
|
Other expense (income) |
|
| 847 |
|
|
| 309 |
|
Total operating expense |
|
| 15,712 |
|
|
| 14,644 |
|
Operating income (loss) |
| $ | (5,116 | ) |
| $ | (3,038 | ) |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 16, 2026 | Showing above |
| 2024 | Apr 1, 2025 | |
| 2023 | Mar 27, 2024 | |
| 2022 | Mar 30, 2023 | |
| 2021 | Mar 29, 2022 | |
| 2020 | Mar 26, 2021 | |
| 2019 | Mar 27, 2020 | |
| 2018 | Mar 28, 2019 | |
| 2017 | Mar 28, 2018 | |
| 2015 | Mar 28, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.