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): February 18, 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 February 18, 2004 entitled "Data I/O reports
4th quarter and 2003 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 4th QUARTER AND 2003 PROFITABILITY
Redmond, Washington (February 18, 2004) -- Data I/O(R)Corporation (NASDAQ: DAIO)
today announced net income for the year 2003 of $1,241,000 or $0.15 per share,
compared to a net loss of ($3,106,000), or ($0.40) per share, for the year 2002.
Revenues for the year 2003 were $24.7 million, compared to $22.8 million for the
year 2002.
Net income for the fourth quarter of 2003 was $272,000 or $0.03 per share,
compared to a net income of $251,000, or $0.03 per share, for the fourth quarter
of 2002. Revenues for the fourth quarter of 2003 were $6.6 million, compared to
$6.2 million for the fourth quarter of 2002.
Gross margins increased in dollars for the fourth quarter of 2003 compared with
the same period of 2002 and were favorably impacted by the currency translation
effects of the weaker U.S. Dollar compared to the Euro. Operating expenses for
sales and marketing increased offset by lower engineering costs and restructure
charge reversal of $13,000 for the fourth quarter of 2003 compared a charge of
$135,000 in the same period of 2002.
"In 2003 the Company focused on newer technologies such as NAND flash and
support for M-Systems DiskOnChip(R) technology," stated Fred Hume, President and
CEO. "As a result, the Company secured initial and repeat orders from its global
customers and gained market share. The new products to be introduced at the APEX
trade show later this month will build on this momentum by satisfying new
requirements in these same accounts as well as the unique needs of customers in
Asia."
First 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 $6.7 million and no debt at the end of the fourth quarter.
Web-Cast Conference Call: The Company has scheduled a conference call for today,
Wednesday, February 18, 2004 at 1:30 p.m. Pacific Time regarding its fourth
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)
Fourth Quarter Twelve Months Ended
--------------------------------- ----------------------------------
--------------------------------- ----------------------------------
Percent Percent
12/31/03 12/31/02 Change 12/31/03 12/31/02 Change
--------------------------------- ----------------------------------
--------------------------------- ----------------------------------
Net sales $6,595 $6,209 6.2% $24,687 $22,838 8.1%
Gross margin 3,615 3,504 3.2% 13,679 11,282 21.2%
Gross margin as percent of sales 54.8% 56.4% -1.6% 55.4% 49.4% 6.0%
Operating expenses:
Research & development 1,105 1,195 -7.5% 4,639 5,331 -13.0%
Selling, general and administrative 2,230 1,877 18.8% 7,780 8,254 -5.7%
Provision for business restructure (13) 135 (39) 632
Operating income (loss) 293 297 1,299 (2,935)
Non-operating income (expense):
Interest, net 31 12 89 69
Foreign currency exchange (10) (122) (114) (301)
Income/(loss) from operations before taxes 314 187 1,274 (3,167)
Income tax expense 42 (64) 33 (61)
Net income/(loss) $272 $251 $1,241 ($3,106)
Diluted earnings/(loss) per share $0.03 $0.03 $0.15 ($0.40)
Diluted weighted average shares outstanding 8,391 7,783 8,117 7,704
CONDENSED BALANCE SHEET
(in thousands)
12/31/03 12/31/02
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Cash and cash equivalents $4,380 $4,383
Short-term investments 2,354 1,076
Accounts receivable, net 5,054 4,328
Inventories 4,608 4,476
Other current assets 430 509
Land, building and equipment 1,151 1,508
Other long-term assets 11 87
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Total assets $17,988 $16,367
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Current liabilities $5,794 $5,647
Deferred gain on sale of property 1,105 1,435
Shareholders' equity 11,089 9,285
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Total liabilities and shareholders' equity $17,988 $16,367
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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
February 18, 2004 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