SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 30, 2003
Data I/O Corporation
(Exact name of registrant as specified in its charter)
Washington
(State of other jurisdiction of incorporation)
0-10394 91-0864123
(Commission File Number) (IRS Employer Identification No.)
10525 Willows Road N.E., Redmond, WA 98073-9746
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (425) 881-6444
Not Applicable
(Former name or former address, if changed since last report)
Page 1 of 4 Pages
Item 12.
A copy of a press release made on October 30, 2003 entitled "Data I/O reports
fourth consecutive quarter of profitability" follows:
Data I/O Corporation
10525 Willows Road N.E.
Redmond, WA 98052
Tel: (425) 881-6444
Fax:(425) 881-6856
For information please contact:
Joel Hatlen Fred Hume
VP Finance/CFO President/CEO
425/881-6444 425/881-6444
DATA I/O REPORTS FOURTH CONSECUTIVE QUARTER OF PROFITABILITY
Redmond, Washington (October 30, 2003) -- Data I/O(R) Corporation (NASDAQ: DAIO)
today announced a net income for the third quarter of 2003 of $319,000, or $0.04
per share, compared to a net loss of $833,000, or ($0.11) per share, for the
third quarter of 2002. Revenues for the third quarter of 2003 were $6.4 million,
compared to $6.4 million for the third quarter of 2002.
Gross margins increased in dollars and as a percentage of sales for the third
quarter of 2003 compared with the same period of 2002, primarily due to the
reduced costs resulting from the Company's restructuring actions taken during
the last year and the increased volume of automated systems and related
aftermarket sales. The reduction in inventories resulted in unfavorable labor
and overhead variances, which partially offset the margin improvement. Also
impacting the margin percentage was the sales mix including lower sales of
programmer aftermarket and software that tend to have higher margins.
Operating expenses declined $422,000 for the third quarter of 2003 compared with
the same period of 2002 excluding the restructuring charge, primarily due to the
reduced costs resulting from the Company's restructuring actions taken during
the last year. The third quarter of 2002 included a restructuring related charge
of $497,000.
"I am pleased to report Data I/O's fourth consecutive quarter of profitability.
I am further encouraged by success during the quarter with initial sales to new
global customers. Much of this success results from our expanding the
capabilities of our programming architecture and the focus on newer technologies
such as NAND flash and support for M-Systems DiskOnChip(R) technology," stated
Fred Hume, President and CEO.
Fourth Quarter 2003 Forward-Looking Statement: Management is committed to
long-term profitable growth and believes that the financial results for the
current quarter will continue to improve and be generally in line with the
previous quarter. The Company remains in a strong financial position with a cash
and short-term investment position of $6.1 million and no debt at the end of the
third quarter.
Web-Cast Conference Call: The Company has scheduled a conference call for
Wednesday, November 5, 2003 at 1:30 p.m. Pacific Time regarding its third
quarter results and a business update for the third quarter that will be
broadcast on the web. Please see Data I/O Corporation's web site at
"http://www.data-io.com" for details.
Forward-Looking Statements: Statements in this news release concerning future
revenues, future results from operations, financial position, economic
conditions, product releases and any other statement that may be construed as a
prediction of future performance or events are forward-looking statements which
involve known and unknown risks, uncertainties and other factors which may cause
actual results to differ materially from those expressed or implied by such
statements. These factors include uncertainties as to levels of orders, ability
to record revenues based upon the timing of product deliveries and
installations, market acceptance of new products, changes in economic conditions
and market demand, pricing and other activities by competitors, and other risks
including those described from time to time in the Company's filings on Forms
10K and 10Q with the Securities and Exchange Commission (SEC), press releases
and other communications.
Corporate Information: Celebrating over 30 years of innovative leadership in the
device programming industry, Data I/O Corporation provides manual and automated
device programming systems that specifically address the requirements of
engineering and manufacturing customers. The Company, which is publicly traded
(NASDAQ: DAIO), is headquartered in Redmond, Wash., and has sales and service
offices worldwide. The Company's worldwide web address is http://www.dataio.com.
###
DATA I/O CORPORTION
COMPARATIVE STATEMENTS OF EARNINGS
(in thousands except per share data)
Third Quarter Nine Months Ended
------------- ------------ ---------- -------------- --------------- ---------
Percent Percent
9/30/2003 9/30/2002 Change 9/30/2003 9/30/2002 Change
------------- ------------ ---------- -------------- --------------- ---------
Net sales $6,360 $6,443 -1.3% $18,092 $16,629 8.8%
Gross margin 3,328 3,271 1.7% 10,064 7,778 29.4%
Gross margin as percent of sales 52.3% 50.8% 1.5% 55.6% 46.8% 8.8%
Operating expenses:
Research & development 1,294 1,430 -9.5% 3,534 4,136 -14.6%
Selling, general and administrative 1,823 2,109 -13.6% 5,551 6,377 -13.0%
Provision for business restructuring 0 497 (27) 497
------------- ------------ -------------- ---------------
Operating income (loss) 211 (765) 1,006 (3,232)
Non-operating income (expense):
Interest, net 15 16 57 57
Foreign currency exchange (21) (121) (102) (179)
------------- ------------ -------------- ---------------
Income/(loss) from operations before taxes 205 (870) 961 (3,354)
Income tax expense (114) (37) (10) 3
------------- ------------ -------------- ---------------
Net income/(loss) $319 ($833) $971 ($3,357)
============= ============ ============== ===============
------------- ------------ -------------- ---------------
Total diluted earnings (loss) per share $0.04 $(0.11) $0.12 $(0.44)
============= ============ ============== ===============
Diluted weighted average shares outstanding 8,243 7,733 8,026 7,682
CONDENSED BALANCE SHEET
(in thousands)
9/30/03 12/31/02
------------ ------------
Cash and cash equivalents $ 4,279 $ 4,383
Short-term investments 1,830 1,076
Accounts receivable, net 5,519 4,328
Inventories 4,173 4,476
Other current assets 176 509
Property, plant and equipment, net 1,160 1,508
Other long-term assets, net 27 87
------------ ------------
Total assets $17,164 $16,367
============ ============
Current liabilities $ 5,437 $ 5,647
Total funded debt - -
Deferred gain on sale of property 1,189 1,435
Shareholders' equity 10,538 9,285
------------ ------------
Total liabilities and shareholders' equity $17,164 $16,367
============ ============
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Data I/O Corporation
November 3, 2003 By /s/Frederick R. Hume
Frederick R. Hume
President
Chief Executive Officer
By /s/Joel S. Hatlen
Joel S. Hatlen
Vice President - Finance
Chief Financial Officer
Secretary and Treasurer