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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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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): July 25, 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 5 Pages
Item 12. Regulation FD Disclosure
A copy of a press release made on July 25, 2003 entitled "Data I/O reports third
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 THIRD CONSECUTIVE QUARTER OF PROFITABILITY
Redmond, Washington (July 25, 2003) -- Data I/O(R) Corporation (NASDAQ: DAIO)
today announced a net income for the second quarter of 2003 of $332,000, or
$0.04 per share, compared to a net loss of $1.4 million, or ($0.18) per share,
for the second quarter of 2002. Revenues for the second quarter of 2003 were
$5.6 million, compared to $4.8 million for the second quarter of 2002, an
increase of 16%.
Gross margins increased in dollars and as a percentage of sales for the second
quarter of 2003 compared with the same period of 2002, primarily due to the
increased sales volume and reduced costs resulting from the Company's
restructuring actions taken during the last year and unfavorable inventory
reserves of $600,000 recorded in 2002. In addition, the margin percentage was
higher than expected due to the sales mix including a larger amount of software
and aftermarket products. Margins were also favorably impacted by the change in
exchange rates.
"I am pleased to report Data I/O's third consecutive quarter of profitability.
Orders were below plan in April due primarily to the impact of SARS. We were
successful in regaining the momentum later in the quarter and backlog increased
by approximately $0.5 million to $1.9 million. The Company remains in a strong
financial position with a cash and short-term investment position of $6 million
and no debt at the end of the second quarter," stated Fred Hume, President and
CEO.
Third 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.
Web-Cast Conference Call: The Company has scheduled a conference call for
Wednesday, July 30, 2003 at 1:30 p.m. Pacific Time regarding its second quarter
results and a business update for the second 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 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.data-io.com.
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DATA I/O CORPORTION
COMPARATIVE STATEMENTS OF EARNINGS
(in thousands except per share data)
Second Quarter Six Months Ended
------------- ------------ ---------- -------------- --------------- ---------
Percent Percent
6/30/2003 6/30/2002 Change 6/30/2003 6/30/2002 Change
------------- ------------ ---------- -------------- --------------- ---------
Net sales $5,578 $4,797 16.3% $11,733 $10,186 15.2%
Gross margin 3,299 2,004 64.6% 6,736 4,507 49.5%
Gross margin as percent of sales 59.1% 41.8% 17.3% 57.4% 44.2% 13.2%
Operating expenses:
Research & development 1,078 1,398 -22.9% 2,240 2,706 -17.2%
Selling, general and administrative 1,801 1,974 -8.8% 3,728 4,268 -12.7%
Provision for business restructuring - (2) (27) (1)
------------- ------------ -------------- ---------------
Operating income (loss) 420 (1,366) 795 (2,466)
Non-operating income (expense):
Interest, net 13 17 42 40
Foreign currency exchange (7) (3) (82) (58)
------------- ------------ -------------- ---------------
Income/(loss) from operations before taxes 426 (1,352) 755 (2,484)
Income tax expense 94 16 105 40
------------- ------------ -------------- ---------------
Net income/(loss) $332 ($1,368) $650 ($2,524)
============= ============ ============== ===============
------------- ------------ -------------- ---------------
Total diluted earnings (loss) per share $0.04 $(0.18) $0.08 $(0.33)
============= ============ ============== ===============
Diluted weighted average shares outstanding 7,988 7,664 7,917 7,657
CONDENSED BALANCE SHEET
(in thousands)
6/30/03 12/31/02
------------ ------------
Cash and cash equivalents $ 5,301 $ 4,383
Short-term investments 735 1,076
Accounts receivable, net 4,563 4,328
Inventories 4,668 4,476
Current deferred tax asset and other assets 263 509
Property, plant and equipment, net 1,225 1,508
Other long-term assets, net 47 87
------------ ------------
Total assets $16,802 $16,367
============ ============
Current liabilities $ 5,389 $ 5,647
Total funded debt - -
Deferred gain on sale of property 1,270 1,435
Shareholders' equity 10,143 9,285
------------ ------------
Total liabilities and shareholders' equity $16,802 $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
July 30, 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