Data I/O ( Nasdaq - DAIO ) -- New Software Wins Acceptance
Data I/O (DAIO $5.75) appears on track to produce accelerating Q3 results. That trend is likely to gain momentum and propel earnings to sharply higher levels in 2012. The company launched its latest hardware product (RoadRunner) on August 1st. That system contained all of Data I/O's new software packages that eliminate programming errors, enhance auditing, scheduling, and tracking, and make piracy substantially more difficult. Inclusion of the software will boost revenues and margins directly. The software also is designed to work with hardware already in the company's installed base. Straight software sales to those customers could provide additional leverage. More software programs are in development. Data I/O continues to hold extensive cash reserves, moreover, so acquisitions of customers, other hardware lines, or complementary software products are possible, as well. Our estimates are unchanged.