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 26, 2006
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 6 Pages
Item 2.02 Results of Operation and Financial Condition
A copy of a press release made on April 26, 2006 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 Deb Stapleton
VP, Finance and Chief Financial Officer Stapleton Communications Inc.
Data I/O Corporation (650) 470-0200
(425) 881-6444 deb@stapleton.com
DATA I/O ANNOUNCES FIRST QUARTER 2006 FINANCIAL RESULTS
Redmond, Wash., April 26, 2006 - Data I/O Corporation (NASDAQ: DAIO), the
leading provider of manual and automated device programming systems, today
announced financial results for the first quarter ended March 31, 2006.
Revenues for the first quarter of 2006 were $6.4 million, compared with $8.4
million in the fourth quarter of 2005 and down from the $6.7 million recorded in
the first quarter of 2005. Order bookings were $7.1 million, compared with $7.6
million in the fourth quarter of 2005 and up from $6.0 million in the first
quarter of 2005. Backlog increased by $0.7 million to $1.9 million at the end of
the first quarter. Gross margins in the first quarter of 2006 were 53.2 percent,
compared with 52.5 percent in the prior quarter.
In accordance with U.S. generally accepted accounting principles (GAAP), net
loss in the first quarter of 2006 was $512,000 or ($0.06) per share, compared
with net income of $363,000, or $0.04 per share, in the fourth quarter of 2005
and a net income of $39,000 in the first quarter of 2005. The net loss per share
in the first quarter of 2006 includes $0.01 that resulted from the impact of
expensing options under FAS 123(R). The company remains debt-free and has cash
and investments of $4.1 million.
"We were disappointed by the revenue shortfall in the first quarter of 2006,
which was due to delays in closing customer prospective orders, resulting in a
loss for the quarter," said Fred Hume, president and CEO. "The good news in this
circumstance is that we did not lose any of these prospective orders to
competition and we were pleased to see our orders increase to the highest levels
reported for a first quarter since the industry downturn of 2000/2001. We also
saw the momentum that built in 2005 continue with significant improvements in
our major customer segments, except for the wireless industry where the normal
seasonal pattern of a weak first quarter persists.
"We are excited to announce that new product development activity remained at a
high level with the completion of what we consider to be the most significant
product introduction from Data I/O in many years. This new automated programming
solution will be announced in press releases on May 3rd," said Hume.
Conference Call Information
A conference call discussing the first quarter 2006 financial results will
follow this release today at 2:00 p.m. Pacific time/5:00 p.m. Eastern time. To
listen to the conference call, please dial (773) 681-5826, passcode: DAIO. A
taped replay will be made available approximately one hour after the conclusion
of the call and will remain available for one week. To access the replay, please
dial (203) 369-3090. The conference call will also be simultaneously webcast
over the Internet; visit the Investor Relations section of the Data I/O
Corporation website at http://www.dataio.com to access the call from the site.
This webcast will be recorded and available for replay on the Data I/O
Corporation website approximately two hours after the conclusion of the
conference call.
About Data I/O Corporation
Celebrating more than 30 years of innovative leadership in the device
programming industry, Data I/O Corporation (NASDAQ: DAIO), provides manual and
automated device programming systems that specifically address the requirements
of engineering and manufacturing customers. FlashCORE(TM), Sprint and UniSite
families provide a wide range of device support and versatility to address a
user's many different programming needs. Data I/O Corporation has headquarters
in Redmond, WA, with sales and services offices worldwide. For further
information, visit the company's website at http://www.dataio.com.
Forward Looking Statement
Statements in this news release concerning future revenues, margins, 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. The
accuracy and completeness of forward-looking statements should not be unduly
relied upon. Data I/O is under no duty to update any of these forward-looking
statements.
- Summary Financial Data Attached -
DATA I/O CORPORATION
COMPARATIVE STATEMENTS OF EARNINGS
(in thousands except per share data)
First Quarter
---------------------------------------
Percent
3/31/2006 3/31/2005 Change
------------ -------------- -----------
Net sales $6,413 $6,737 -4.8%
Gross margin 3,410 4,014 -15.0%
Gross margin as percent of sales 53.2% 59.6% -6.4%
Operating expenses:
Research & development 1,306 1,337 -2.3%
Selling, general and administrative 2,639 2,631 0.3%
--------------- --------------
Operating income (loss) (535) 46
Non-operating income (expense):
Interest, net 43 20
Gain on sale 6 0
Foreign currency exchange 3 (21)
--------------- --------------
Income (loss) from operations before taxes (483) 45
Income tax expense (benefit) 29 6
--------------- --------------
Net income (loss) ($512) $39
=============== ==============
Total diluted earnings (loss) per share ($0.06) $0.00
Diluted weighted average shares
outstanding 8,386 8,550
CONDENSED BALANCE SHEET
(in thousands)
3/31/2006 12/31/2005
------------ ------------
Cash and cash equivalents $3,282 $4,362
Short-term investments 800 800
Accounts receivable, net 6,531 6,828
Inventories 3,993 3,529
Other current assets 376 329
Land, building and equipment 2,280 2,274
Other long-term assets 84 15
------------ ------------
Total assets $17,346 $18,137
============ ============
Current liabilities $5,237 $5,854
Shareholders' equity 12,109 12,283
------------ ------------
Total liabilities and shareholders'equity $17,346 $18,137
============ ============
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 28, 2006 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