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): August 3, 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
Items 12. Regulation FD Disclosure
A copy of a press release made on August 3, 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 SECOND QUARTER 2004 FINANCIAL RESULTS
Redmond, WA. (Aug. 3, 2004) - Data I/O Corporation (NASDAQ: DAIO), the leading
provider of manual and automated device programming systems, today announced
financial results for the second quarter ended June 30, 2004.
Revenues for the second quarter were $6.9 million, compared with $6.8 million in
the first quarter of 2004. Second quarter gross margins were 51 percent,
compared with 54 percent in the prior quarter. The lower gross margins were
primarily a result of more indirect sales than direct sales in the quarter, a
product mix shift to somewhat lower margin products and unfavorable labor and
overhead variances associated with a reduction in inventory.
In accordance with U.S. generally accepted accounting principles (GAAP), net
income for the second quarter of 2004 was $104,000, or $0.01 per share, compared
with net income of $296,000 or $0.04 per share in the first quarter of 2004. A
restructuring related charge of $70,000 or $0.01 per share was included in the
second quarter results.
Total cash and short-term investments were $5.6 million at June 30, 2004. The
company remains debt-free.
"We are pleased with our continued progress in the second quarter, which was our
seventh consecutive quarter of profitability," said Fred Hume, president and
CEO. "Orders were higher than at any time since the fourth quarter of 2000, and
we saw many repeat orders from existing customers, a validation of our excellent
technology and customer relationships.
"Orders from Asia increased during the second quarter; in fact, that region is
now the largest overall contributor to the company. We expect this growth to
continue, particularly as a result of our investments in China. We began revenue
shipments of the PS288FC, an automated programming solution that we introduced
at the end of the first quarter. The PS288FC offers a superior price/performance
position for certain classes of devices for many customers, particularly in Asia
where we see the largest potential for growth. Based on our FlashCore family of
modular automated programmers, the PS288FC is completely compatible with any PS
system."
Guidance for the Third Quarter
Data I/O currently expects to see revenue growth in the third quarter of
approximately five percent. The company expects to take a restructuring charge
of approximately $500,000 in the third quarter, related primarily to workforce
reductions. The company expects that workforce reductions, most of which were
effective Aug. 2, 2004, and other margin improvement initiatives will increase
net income by approximately $1.2 million per year. As a result of the
restructuring actions, Q3 GAAP net income will remain relatively flat with the
second quarter.
Conference Call Information
A conference call discussing the second quarter of 2004 financial results will
follow this release at 1:30 p.m. Pacific time/4:30 p.m. Eastern time. To listen
to the call, please dial (800) 553-5275, confirmation code: 739904. 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 (800)
475-6701, access code: 739904. 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)
Second Quarter Six Months Ended
------------------------------------------------- -------------------------------------
Percent Percent
6/30/2004 6/30/2003 Change 6/30/2004 6/30/2003 Change
------------------------------------------------- -------------------------------------
Net sales $6,896 $5,578 23.6% $13,729 $11,733 17.0%
Gross margin 3,510 3,299 6.4% 7,223 6,736 7.2%
Gross margin as percent of sales 50.9% 59.1% -8.2% 52.6% 57.4% -4.8%
Operating expenses:
Research & development 1,177 1,078 9.2% 2,381 2,240 6.3%
Selling, general and administrative 2,121 1,801 17.8% 4,294 3,728 15.2%
Provision for business restructure 70 0 70 (27)
------------------------------------ -----------------------------
Operating income (loss) 142 420 478 795
Non-operating income (expense):
Interest, net 7 13 42 42
Foreign currency exchange (5) (7) (19) (82)
------------------------------------ -----------------------------
Income/(loss) from operations before taxes 144 426 501 755
Income tax expense 40 94 102 105
------------------------------------ -----------------------------
Net income/(loss) 104 332 399 650
==================================== =============================
------------------------------------ -----------------------------
Total diluted earnings/(loss) per share $0.01 $0.04 $0.05 $0.08
==================================== =============================
Diluted weighted average shares outstanding 8,286 7,988 8,350 7,917
DATA I/O CORPORATION
CONDENSED BALANCE SHEET
(in thousands)
6/30/2004 12/31/2003
--------------- ----------------
Cash and cash equivalents $3,298 $4,380
Short-term investments 2,343 2,354
Accounts receivable, net 6,528 5,054
Inventories 3,878 4,608
Other current assets 383 430
Property, plant and equipment, net 1,437 1,151
Other long-term assets, net 3 11
--------------- ----------------
Total assets $17,870 $17,988
=============== ================
Current liabilities $5,445 $5,794
Deferred gain on sale of property 941 1,105
Shareholders' equity 11,484 11,089
--------------- ----------------
Total liabilities and shareholders'equity $17,870 $17,988
=============== ================
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
August 4, 2004 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