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 28, 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 October 28, 2005 follows:
Data I/O Corporation
10525 Willows Road N.E.
Redmond, WA 98052
For information please contact:
Joel Hatlen Deb Stapleton/Christina Carrabino
VP, Finance and Chief Financial Officer Stapleton Communications Inc.
Data I/O Corporation (650) 470-0200
(425) 881-6444 deb@stapleton.com
christina@stapleton.com
DATA I/O ANNOUNCES THIRD QUARTER 2005 FINANCIAL RESULTS
Redmond, Wash., Oct. 28, 2005 - 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, 2005.
Revenues were $6.6 million, the same as in the second quarter of 2005. However,
stronger demand for the company's products resulted in increased unshipped
orders, raising backlog by $1.2 million to a total of $2 million going into the
fourth quarter. Gross margins in the third quarter of 2005 were 57.0 percent,
compared with 59.2 percent in the prior quarter.
In accordance with U.S. generally accepted accounting principles (GAAP), net
income in the third quarter of 2005 was $127,000 or $0.02 per share, compared
with net income of $53,000, or $0.01 per share, in the second quarter of 2005.
The company remains debt-free.
"During the third quarter, our strategy to increase our engagement with the
semiconductor manufacturers produced results. A large semiconductor manufacturer
purchased an initial automated programming system for factory programming in its
Asian facility. We continue to strengthen our three-way relationships with
semiconductor manufacturers and global customers," said Fred Hume, president and
CEO.
"In September, at an important industry show, we introduced the ImageWriter-300,
a programming solution designed specifically for integration with
in-circuit-test equipment. The ImageWriter-300 is a new configuration in our
ImageWriter(TM) line of In-System Programming solutions. This solution expands
the ImageWriter line's available market.
"We continued to make progress with our automotive-related accounts during the
third quarter. A large automotive electronics manufacturer made an initial
purchase of a Data I/O PS system. The automotive electronics manufacturers are
becoming increasingly important to us as a segment for automated and ISP
solutions," said Hume.
Fourth Quarter 2005 Guidance
Data I/O currently expects that revenues in the fourth quarter of 2005 will
increase significantly over third quarter revenues.
Conference Call Information
A conference call discussing the third 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 (773) 756-4619, 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)220-9103. 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)
Third Quarter Nine Months Ended
------------------------------------------- ---------------------------------------
Percent Percent
9/30/2005 9/30/2004 Change 9/30/2005 9/30/2004 Change
--------------- -------------- ------------ ------------ ------------ -----------
Net sales $6,587 $7,765 -15.2% $19,966 $21,495 -7.1%
Gross margin 3,756 4,232 -11.2% 11,703 11,455 2.2%
Gross margin as percent of sales 57.0% 54.5% 58.6% 53.3%
Operating expenses:
Research & development 1,218 1,262 -3.5% 3,905 3,642 7.2%
Selling, general and administrative 2,411 2,405 0.2% 7,421 6,700 10.8%
Provision for business restructure 17 432 73 502
--------------- -------------- -------------- ------------
Operating income (loss) 110 133 304 611
Non-operating income (expense):
Interest, net 33 (12) 65 29
Foreign currency exchange (21) (26) (44) (45)
--------------- -------------- -------------- ------------
Income/(loss) from operations before taxes 122 95 325 595
Income tax expense (benefit) (5) 2 106 103
--------------- -------------- -------------- ------------
Net income/(loss) 127 93 219 492
=============== ============== ============== ============
Diluted earnings/(loss) per share $0.02 $0.01 $0.03 $0.06
Diluted weighted average shares
outstanding 8,468 8,386 8,501 8,362
CONDENSED BALANCE SHEET
(in thousands)
9/30/2005 12/31/2004
------------ ------------
Cash and cash equivalents $2,632 $5,534
Short-term investments 1,200 1,037
Accounts receivable, net 6,588 4,489
Inventories 3,852 4,139
Other current assets 291 652
Land, building and equipment 2,321 1,970
Other long-term assets 18 26
------------ ------------
Total assets $16,902 $17,847
============ ============
Current liabilities $4,638 $5,601
Deferred gain on sale of property 485 776
Shareholders' equity 11,779 11,470
------------ ------------
Total liabilities and shareholders' equity $16,902 $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
November 1, 2005 By /s/Joel S. Hatlen
Joel S. Hatlen
Vice President - Finance
Chief Financial Officer
Secretary and Treasurer