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 22, 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 6 Pages
Item 2.02 Results of Operation and Financial Condition
A copy of a press release made on October 22, 2004 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 Deborah Stapleton
VP, Finance and Chief Financial Officer Stapleton Communications
Data I/O (650) 470-0200
(425) 881-6444 deb@stapleton.com
DATA I/O ANNOUNCES THIRD QUARTER 2004 FINANCIAL RESULTS
Redmond, WA. (Oct. 22, 2004) - Data I/O Corporation (NASDAQ: DAIO), the leading
provider of manual and automated device programming systems, today announced
financial results for the third quarter ended Sept. 30, 2004.
Revenues were $7.8 million, up 12.6 percent from the $6.9 million reported in
the second quarter of 2004. Third quarter gross margins increased to 54.5
percent, up from the 50.9 percent reported in the prior quarter. The higher
gross margins were primarily a result of increased direct sales in Europe and
Asia, a more favorable product mix and material cost savings.
In accordance with U.S. generally accepted accounting principles (GAAP), net
income for the third quarter of 2004 was $93,000 or $0.01 per share, compared
with net income of $104,000 or $0.01 per share in the second quarter of 2004.
The company took a restructuring charge of $432,000 or $0.05 per share during
the third quarter, related to a reduction in the work force announced Aug. 2,
2004. Excluding the restructuring charge, the company's operating income was
7.3% of sales, in line with the company's expectations.
Total cash and short-term investments were $6.2 million at Sept. 30, 2004. The
company remains debt-free.
"We are pleased with our continued growth and the fact that we achieved our
highest quarterly revenues since the fourth quarter of 2000 while recording our
eighth consecutive quarter of profitability," said Fred Hume, president and CEO.
"We saw stronger customer activity from Asia, which remained our largest overall
revenue contributor. We believe this growth continues to validate our investment
in that region, which is the fastest growing manufacturing center in the world.
"We began revenue shipments of our new in-systems programming (ISP) product
solution to a major industrial controls manufacturer in the U.S. Initially, our
ISP solution will focus on applications and devices that use access methods to
the devices that are not currently supported by JTAG tools vendors. The new
product satisfies an unmet need for an ISP solution that can be easily
integrated with other test products in a manufacturing environment," Hume said.
Guidance for the Fourth Quarter
Data I/O currently expects that financial results for the fourth quarter will
generally be in line with operating results for the third quarter.
Conference Call Information
A conference call discussing the third quarter of 2004 financial results will
follow this release today at 8:00 a.m. Pacific time/11:00 a.m. Eastern time. To
listen to the call, please dial (212) 287-1617, passcode: Data I/O. 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, dial (203)
369-0515, access code: Data I/O. 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 for approximately one year.
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, 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.
- Summary Financial Data Attached -
DATA I/O CORPORATION
COMPARATIVE STATEMENTS OF EARNINGS
(in thousands except per share data)
Third Quarter Nine Months Ended
----------------------------------------- ----------------------------------------
Percent Percent
9/30/2004 9/30/2003 Change 9/30/2004 9/30/2003 Change
----------------------------------------- ----------------------------------------
Net sales $7,765 $5,578 22.1% $21,495 $18,092 18.8%
Gross margin 4,232 3,299 27.2% 11,455 10,064 13.8%
Gross margin as percent of sales 54.5% 52.3% 2.2% 53.3% 55.6% -2.3%
Operating expenses:
Research & development 1,262 1,294 -2.5% 3,642 3,534 3.1%
Selling, general and administrative 2,405 1,823 31.9% 6,700 5,551 20.7%
Provision for business restructure 432 0 502 (27)
------------------------------ -----------------------------
Operating income (loss) 133 420 611 1,006
Non-operating income (expense):
Interest, net (12) 15 29 57
Foreign currency exchange (26) (21) (45) (103)
------------------------------ -----------------------------
Income/(loss) from operations before taxes 95 205 595 960
Income tax expense 2 (114) 103 (10)
------------------------------ -----------------------------
Net income/(loss) 93 319 492 970
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Total diluted earnings/(loss) per share $0.01 $0.04 $0.06 $0.12
============================== =============================
Diluted weighted average shares outstanding 8,386 8,243 8,362 8,026
DATA I/O CORPORATION
CONDENSED BALANCE SHEET
(in thousands)
9/30/2004 12/31/2003
--------------- ----------------
Cash and cash equivalents $4,936 $4,380
Short-term investments 1,298 2,354
Accounts receivable, net 6,417 5,054
Inventories 3,454 4,608
Other current assets 315 430
Property, plant and equipment, net 1,622 1,151
Other long-term assets, net 29 11
--------------- ----------------
Total assets $18,071 $17,988
=============== ================
Current liabilities $5,452 $5,794
Deferred gain on sale of property 858 1,105
Shareholders' equity 11,761 11,089
--------------- ----------------
Total liabilities and shareholders' equity
$18,071 $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
October 22, 2004 By /s/Frederick R. Hume
-----------------------
Frederick R. Hume
President
Chief Executive Officer
By /s/Joel S. Hatlen
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Joel S. Hatlen
Vice President - Finance
Chief Financial Officer
Secretary and Treasurer