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 27, 2005
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 27, 2005 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 FIRST QUARTER 2005 FINANCIAL RESULTS
Redmond, Wash., April 27, 2005 - 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, 2005.
Revenues were $6.7 million, compared with $5.8 million in the fourth quarter of
2004. Gross margins in the first quarter of 2005 were 59.6 percent, compared
with 53.8 percent in the prior quarter. The higher gross margins were primarily
a result of more direct than indirect sales in the quarter, a favorable product
mix, higher margins on aftermarket products, and lower labor and overhead
expenses related to the company's restructuring in 2004.
In accordance with U.S. generally accepted accounting principles (GAAP), net
income in the first quarter of 2005 was $39,000, compared with a net loss of
$584,000 in the fourth quarter of 2004.
Total cash and short-term investments were $5.1 million at March 31, 2005. The
company remains debt-free.
"We recently announced the expansion of our strategic alliance with Intel
Corporation," said Fred Hume, president and CEO. "Intel opened a new Programmer
Evaluation Lab in the Philippines, which includes a Data I/O FlashPAK
programming system. The new lab increases our ability to support our common
customers in Asia," he said.
"We began revenue shipments of the ImageWriter(TM) during the first quarter, and
also announced that our ImageWriter product supports the Atmel AVR family of
flash microcontrollers already mounted on a circuit board. The ImageWriter is
based on an open architecture that enables seamless integration with automated
test and manufacturing systems, enabling manufacturers of consumer goods,
automotive equipment and industrial products to reduce costs and rapidly deliver
products to market. We expect to see continued growth in our in-system
programming product sales in the quarters to come," said Hume.
"In addition, we signed a distribution agreement with Accelonix UK, a leading
supplier of test and measurement equipment in Great Britain. Accelonix UK will
be the exclusive distributor for Data I/O's products in Great Britain and
Northern Ireland. We are excited about the compelling market opportunities in
this region," said Hume.
Second Quarter 2005 Guidance
Data I/O currently expects that revenues in the second quarter of 2005 will grow
modestly over the first quarter, with gross margins expected to be similar to
the first quarter.
Conference Call Information
A conference call discussing the first quarter 2005 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 (210) 234-0002, 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 (402)
530-8088. 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, future margins,
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)
Fourth Quarter
-------------------------------------------
Percent
3/31/2005 3/31/2004 Change
--------------- -------------- ------------
Net sales $6,737 $6,834 (1.4%)
Gross margin 4,014 3,713 8.1%
Gross margin as percent of sales 59.6% 54.3% 5.3%
Operating expenses:
Research & development 1,337 1,204 11.0%
Selling, general and administrative 2,631 2,172 21.1%
Provision for business restructure 0 0
--------------- --------------
Operating income (loss) 46 337
Non-operating income (expense):
Interest, net 20 34
Foreign currency exchange (21) (14)
--------------- --------------
Income/(loss) from operations before taxes 45 357
Income tax expense (benefit) 6 61
--------------- --------------
Net income/(loss) $39 $296
=============== ==============
Diluted earnings/(loss) per share $0.00 $0.04
Diluted weighted average shares
outstanding 8,550 8,414
CONDENSED BALANCE SHEET
(in thousands)
3/31/2005 12/31/2004
------------ ------------
Cash and cash equivalents $3,801 $5,534
Short-term investments 1,330 1,037
Accounts receivable, net 5,366 4,489
Inventories 3,807 4,139
Other current assets 495 652
Land, building and equipment 1,880 1,970
Other long-term assets 23 26
------------ ------------
Total assets $16,702 $17,847
============ ============
Current liabilities $4,511 $5,601
Deferred gain on sale of property 679 776
Shareholders' equity 11,512 11,470
------------ ------------
Total liabilities and shareholders' equity $16,702 $17,847
============ ============
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 27, 2005 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