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DATA IO: Automotive-Technology Arms Dealer

|Includes: Data I/O Corporation (DAIO)

Data I/O designs, manufactures, and sells programming systems to global electronic device manufacturers. Data I/O's programming systems are used by the leading manufacturers, programming centers, and contract manufacturers to program integrated circuits. Over the last year, it's stock has been a beneficiary of improving visibility into automotive technology evolution. This is a name I'll be looking into further, potentially as a technology add.

A few items worth highlighting:

[1] 3 consecutive years of revenue growth

[2] 2 consecutive years of profitability

[3] strong momentum in automotive-vertical and IoT

[4] significant new win in automotive-vertical

[5] ranked 9th in Puget Sound Business Journal's 2016 Fastest Growing Public Technology Companies list

While the company hasn't updated its investor presentation in quite some time [dating back to last November], it is worth a quick review. Data I/O's ability to continue to be an "arms dealer" in the automotive tech ecosystem should continue to act as a major catalyst for the firm. Currently, the company's market cap [at a $4.42 pricing] is just ~$35 million -- leaving ample room for upside considering the existing margin profile [mid-50%] and sure to come operating leverage on continued growth. For Q3/2016, Data I/O reported ~$6.6 million in sales. The firm reported ~$17 million in sales through 9M/2016 reporting.

Stay tuned for further updates.