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): April 23, 2004
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 98052
(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 5 Pages
Item 12.
A copy of a press release made on April 23, 2004 entitled "Data I/O Reports
Sixth 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 SIXTH CONSECUTIVE QUARTER OF PROFITABILITY
Redmond, Washington (April 23, 2004) -- Data I/O(R) Corporation (NASDAQ: DAIO)
today announced a net income for the first quarter of 2004 of $296,000 or $0.04
per share, compared to a net income of $317,000, or $0.04 per share, for the
first quarter of 2003. Revenues for the first quarter of 2004 were $6.8 million,
up 11% compared to $6.2 million for the first quarter of 2003.
Gross margins increased by $276,000 in the first quarter of 2004 compared with
the same period of 2003. This was primarily due to the higher sales level and an
increase in the aftermarket sales mix. Operating expenses were higher in the
first quarter of 2004 compared to the first quarter of 2003 due primarily to the
company's strategic investments in Asia and in a new venture in in-system
programming (ISP) under development, as well as the unfavorable currency
translation impact of European based operating costs. The company's lean
manufacturing processes continued to show results helping to reduce inventories
by $555,000 during the quarter.
During the quarter, the Company added Joe Murdica as Vice President of Sales for
the Americas and Asia. He joined in the introduction, at the APEX trade show, of
the new PS-288FC automated programming system along with several other products.
This month, the Company formed a new subsidiary in Brazil specifically to
support Siemens ICM handset production in Manaus.
"I am pleased to report profitable revenue growth at the same time that the
company is making a significant investment to position itself to take advantage
of the growth in the Asian market for our products," stated Fred Hume, the
company's President and CEO. "As the geographical center of the electronics
manufacturing industry has shifted to Asia, we have redeployed resources to that
region and are adding staff locally. This will allow us to service and support
our customers there in their time zone. We have also invested in strengthening
our sales organization globally in recognition of the improving climate for
capital equipment."
Second Quarter 2004 Forward-Looking Statement: Management is committed to
long-term profitable growth and believes that the financial results for the
current quarter will 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 first quarter.
Web-Cast Conference Call: The Company has scheduled a conference call for
Friday, April 23, 2004 at 8:30 a.m. Pacific Time regarding its first quarter
results and a business update that will be broadcast on the web. Please see Data
I/O Corporation's web site at "http://www.dataio.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.
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DATA I/O CORPORATION
COMPARATIVE STATEMENTS OF EARNINGS
(in thousands except per share data)
First Quarter
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Percent
3/31/04 3/31/03 Change
-------------------------------------
Net sales $6,834 $6,155 11.0%
Gross margin 3,713 3,437 8.0%
Gross margin as percent of sales 54.3% 55.8% -1.5%
Operating expenses:
Research & development 1,204 1,161 3.7%
Selling, general and administrative 2,172 1,928 12.7%
Provision for business restructure 0 (27)
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Operating income 337 375
Non-operating income (expense):
Interest, net 34 29
Foreign currency exchange (14) (76)
--------------------------
Income from operations before taxes 357 328
Income tax expense 61 11
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Net income 296 317
==========================
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Total diluted earnings per share $0.04 $0.04
==========================
Diluted weighted average shares outstanding 8,414 7,847
CONDENSED BALANCE SHEET
(in thousands)
3/31/04 12/31/03
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Cash and cash equivalents $3,706 $4,380
Short-term investments 2,368 2,354
Accounts receivable, net 5,606 5,054
Inventories 4,053 4,608
Other current assets 412 430
Property, plant and equipment, net 1,465 1,151
Other long-term assets, net 7 11
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Total assets $17,617 $17,988
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Current liabilities $5,177 $5,794
Deferred gain on sale of property 1,023 1,105
Shareholders' equity 11,417 11,089
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Total liabilities and shareholders' equity $17,617 $17,988
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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
April 23, 2004 By /s/Joel S. Hatlen
Joel S. Hatlen
Vice President
Chief Financial Officer
Secretary and Treasurer