Data I/O and IAR Announce Collaboration to Simplify and Unify Security Provisioning from Embedded Design to Manufacturing
Rhea-AI Summary
Data I/O (NASDAQ: DAIO) and IAR announced a collaboration to unify security provisioning from embedded design through volume manufacturing. The integrated solution links IAR's embedded toolchain with Data I/O's PSV programming systems and ConneX traceability to secure supply chains and accelerate device support.
The offering aims to reduce touchpoints, enable global, consistent provisioning, and launch in 2026 with several active customer engagements underway.
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News Market Reaction – DAIO
On the day this news was published, DAIO gained 2.49%, reflecting a moderate positive market reaction. This price movement added approximately $641K to the company's valuation, bringing the market cap to $26M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
DAIO was up 1.44% while peers were mixed: SELX up 10.24%, MTEK down 5.75%, REFR down 1.79%, CPSH down 0.92%, SGMA flat. Only CPSH appeared in momentum scans, moving down, suggesting DAIO’s move was more stock-specific than sector-driven.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 12 | Earnings call schedule | Neutral | -1.0% | Announced timing for Q4 2025 results release and conference call. |
| Nov 20 | Investor conference | Positive | -2.2% | Participation in Benchmark investor conference highlighting growth and strategy. |
| Nov 18 | Product award | Positive | -6.0% | LumenX2 platform and LumenX2-M4 won 2025 Global Technology Award. |
| Nov 17 | Product launch | Positive | -2.6% | Unveiled LumenX2 platform and expanded algorithm library at productronica 2025. |
| Oct 30 | Quarterly results | Neutral | +0.3% | Reported Q3 2025 results with higher bookings but a net loss and investments. |
Recent positive product and conference news often coincided with negative next-day moves, while earnings-related items showed relatively muted or slightly positive reactions.
Over the last few months, Data I/O reported Q3 2025 results with net sales of $5.4M, a gross margin of 50.7%, and a net loss of $1.362M, alongside strong cash and no debt. Product-related announcements around the LumenX2 platform and a technology award saw share price declines in the following sessions. An earnings-date notice and an investor conference participation also coincided with modest negative moves. Against this backdrop, today’s security-focused collaboration with IAR extends the company’s unified programming and security positioning across design and manufacturing.
Regulatory & Risk Context
An effective S-3 shelf filed on 2026-01-09 registers up to $20,000,000 of mixed securities, including equity and debt instruments, to be issued over time as detailed in future prospectus supplements. Proceeds are designated for general corporate purposes, including acquisitions and strategic initiatives.
Market Pulse Summary
This announcement extends Data I/O’s unified programming strategy into a joint security provisioning solution with IAR, covering design through volume manufacturing. It builds on prior LumenX2 platform launches and awards while the company navigates Q3 2025 metrics such as $5.393M in net sales, a 50.7% gross margin, and a net loss of $1.362M. Investors may watch execution on 2026 launch timing, adoption by OEMs, and any use of the $20,000,000 S-3 shelf for strategic initiatives.
Key Terms
microcontrollers technical
toolchain technical
original equipment manufacturers technical
AI-generated analysis. Not financial advice.
Technology Integration Delivers Seamless Security Solution from Development Through Volume Production
REDMOND, Wash., Feb. 25, 2026 (GLOBE NEWSWIRE) -- Data I/O Corporation (NASDAQ: DAIO), the leading global provider of data provisioning solutions for flash memory, microcontrollers and security ICs, and IAR, the global leader in embedded development software tools, today announced the companies are collaborating to deliver a simple, secure and seamless solution that unifies security provisioning throughout the supply chain from embedded design into mass production manufacturing.
As government regulations and industry standards increasingly mandate robust security measures for electronic products, this partnership addresses a critical industry need. Designing security from the beginning is essential to ensure firmware integrity, prevent unauthorized access, and protect intellectual property. By securing the supply chain from design through the earliest point in the production process, this technology integration minimizes touchpoints for exposure to threat actors and reduces the risk of compromise.
The collaboration leverages IAR's global leadership in embedded tools, security definition with Data I/O's expertise in semiconductor preprogramming and device provisioning technology. By leveraging the combined algorithm libraries of both companies, the collaboration enables broader device support at an accelerated pace – giving manufacturers access to a wider range of supported devices without sacrificing speed or security. IAR’s solution integrates directly with Data I/O’s industry-proven PSV family of programming systems providing a seamless workflow for electronics manufactures requiring secure, high-throughput device provisioning. This collaboration enables original equipment manufacturers (OEMs) worldwide to:
- Design security into embedded products from the start with the IAR toolchain, with secure and seamless transfer into manufacturing on Data I/O's manual and automated programming solutions, securing the supply chain from design to production
- Gain greater control over security deployment with integrated solutions that maintain security integrity throughout the development and manufacturing lifecycle
- Move production anywhere in the world securely with consistent security provisioning capabilities across global manufacturing sites
- Reduce development time and minimize touchpoints through the combination of IAR's and Data I/O's comprehensive algorithm libraries
- Enable complete traceability with Data I/O's ConneX software for device-level tracking and reporting throughout the entire security provisioning process
"Collaborating with IAR allows us to extend our security provisioning capabilities upstream into the design phase, creating an unprecedented end-to-end solution for our customers. The synergy is clear: IAR brings world-class embedded development expertise, and their customers trust them to define security from the earliest stages, while Data I/O brings decades of experience in reliable, scalable device programming for volume manufacturing,” said William Wentworth, President and CEO of Data I/O Corporation. “Together, we're not just offering tools—we're delivering a complete security ecosystem that empowers OEMs to meet evolving regulatory requirements while maintaining the agility to compete globally. This is the kind of collaboration that strengthens both companies and creates substantial value for our customers."
This solution is expected to launch in 2026. The collaboration is already gaining traction with several active customer engagements underway across the global manufacturing operations.
About Data I/O Corporation
Since 1972, Data I/O has developed innovative solutions to enable the design and manufacture of electronic products for automotive, Internet-of-Things, medical, wireless, consumer electronics, industrial controls, and other electronics devices. Today, our customers use Data I/O security deployment and programming solutions to reliably, securely, and cost-effectively, bring innovative new products to life. These solutions are backed by a global network of Data I/O support and service professionals, ensuring success for our customers. For more information, please visit www.dataio.com.
About IAR
IAR delivers world-leading software and services for embedded development, empowering companies worldwide to create secure, high-quality products that shape the future. Since 1983, our solutions have helped ensure reliability, security, and efficiency in the development of more than one million embedded applications across industries such as Automotive, Industrial Automation, IoT, MedTech, and Safety.
With support for 15,000 devices from over 70 semiconductor partners, we enable innovation and success for our customers. Headquartered in Uppsala, Sweden, we operate globally through strategically located sales and support offices.
IAR is part of Qt Group, operating as an independent business unit while strengthening our ability to deliver comprehensive solutions for embedded systems. Learn more at http://www.iar.com
Media Contacts
Data I/O Corporation
Jennifer Higgins
Director Corporate Marketing
higginj@dataio.com
+1-425-867-6922
FAQ
What does the Data I/O and IAR collaboration mean for DAIO shareholders?
When will the Data I/O (DAIO) and IAR integrated security solution be available?
How does the IAR and Data I/O integration improve device provisioning speed and coverage?
Will the Data I/O and IAR solution support global manufacturing sites for DAIO customers?
How does the collaboration between IAR and Data I/O affect supply-chain security for embedded products?
