v3.26.1
SEGMENT INFORMATION
6 Months Ended
Jun. 30, 2026
SEGMENT INFORMATION  
SEGMENT INFORMATION

NOTE 11 –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/CEO 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 chief operating decision maker and included in the reported segment operating profits are outlined in the following table:

 

 

 

 Three Months Ended

 

 

 Six Months Ended

 

 

 

June 30,

2026

 

 

June 30,

2025

 

 

June 30,

2026

 

 

June 30,

2025

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$5,149

 

 

$5,948

 

 

$8,399

 

 

$12,124

 

Cost of goods sold

 

 

2,214

 

 

 

2,988

 

 

 

3,854

 

 

 

5,976

 

Gross margin

 

 

2,935

 

 

 

2,960

 

 

 

4,545

 

 

 

6,148

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee expenses

 

 

2,015

 

 

 

2,392

 

 

 

4,061

 

 

 

4,647

 

Customer acquisition costs

 

 

166

 

 

 

240

 

 

 

374

 

 

 

533

 

Professional and outside services

 

 

691

 

 

 

570

 

 

 

1,669

 

 

 

1,111

 

Occupancy costs (OPEX portion)

 

 

205

 

 

 

243

 

 

 

575

 

 

 

462

 

Depreciation & amortization

 

 

97

 

 

 

139

 

 

 

203

 

 

 

265

 

Other

 

 

485

 

 

 

220

 

 

 

1,532

 

 

 

351

 

Total operating expense

 

 

3,659

 

 

 

3,804

 

 

 

8,414

 

 

 

7,369

 

Operating income (loss)

 

$(724)

 

$(844)

 

$(3,869)

 

$(1,221)