1
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): April 18, 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 4 Pages
Items 9 and 12. Regulation FD Disclosure
A copy of a press release made on April 18, 2003 entitled "Data I/O reports
first quarter profits" 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 FIRST QUARTER PROFITS
Redmond, Washington (April 18, 2003) -- Data I/O(R) Corporation (NASDAQ: DAIO)
today announced a net income for the first quarter of 2003 of $317,000, or $0.04
per share, compared to a net loss of $1.2 million, or ($0.15) per share, for the
first quarter of 2002. Revenues for the first quarter of 2003 were $6.2 million,
compared to $5.4 million for the first quarter of 2002, an increase of 14%.
Gross margins increased in dollars and as a percentage of sales for the first
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 recorded in 2002. The first quarter of 2003 included a reversal of
previously accrued restructuring charges of $27,000.
"I am pleased to report Data I/O's return to profitability for a second
consecutive quarter. 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 first quarter. I am especially pleased that the Company has been able to
increase its market share against its competition," stated Fred Hume, President
and CEO. "The Company introduced important new products at the APEX trade show
earlier this month including a version of ProLINE-RoadRunner to support the
Panasonic Panasert placement machines, and microcontroller support on ProLINE
FlashCORE programming systems."
Second Quarter 2003 Forward-Looking Statement: Management is committed to
long-term profitable growth and has reason to believe that the financial results
for the current quarter will be generally in line with the previous quarter.
However, there are economic and political forces affecting the Company's
customers that could impact the Company's financial performance. For this
reason, the Company has decided not to provide specific earnings guidance.
Web-Cast Conference Call: The Company has scheduled a conference call for
Wednesday, April 23, 2003 at 1:30 p.m. Pacific Time regarding its first 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, breakeven 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 CORPORATION
COMPARATIVE STATEMENTS OF EARNINGS
(in thousands except per share data)
First Quarter
------------ ------------- ---------
Percent
3/31/2003 3/31/2002 Change
------------ ------------- ---------
Net sales $6,155 $ 5,389 14.2%
Gross margin 3,437 2,503 37.3%
Gross margin as percent of sales 55.8% 46.4% 9.4%
Operating expenses:
Research & development 1,161 1,308 -32.5%
Selling, general and administrative 1,928 2,295 -23.4%
------------ -------------
Operating income (loss) 375 (1,100)
Non-operating income (expense):
Interest, net 29 23
Foreign currency exchange (76) (55)
------------ -------------
Income (loss) before taxes 328 (1,132)
Income tax expense 11 23
------------ -------------
Net income (loss) $317 $(1,155)
Diluted earnings per share $0.04 $(0.15)
Diluted weighted average shares outstanding 7,847 7,649
CONDENSED BALANCE SHEET
(in thousands)
3/31/03 12/31/02
------------ ------------
Cash and cash equivalents $ 5,645 $ 4,383
Short-term investments 339 1,076
Accounts receivable, net 4,675 4,328
Inventories 4,383 4,476
Current deferred tax asset and other assets 236 509
Property, plant and equipment, net 1,196 1,508
Other long-term assets, net 67 87
------------ ------------
Total assets $16,541 $16,367
============ ============
Current liabilities, excluding current portion
of funded debt $ 5,469 $ 5,647
Total funded debt - -
Deferred gain on sale of property 1,353 1,435
Shareholders' equity 9,719 9,285
------------ ------------
Total liabilities and shareholders' equity $16,541 $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
April 18, 2003 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