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): February 20, 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
Item 9. Regulation FD Disclosure
A copy of a press release made on February 20, 2003 entitled "Data I/O reports
fourth 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 FOURTH QUARTER PROFITS
Redmond, Washington (February 20, 2003) -- Data I/O(R) Corporation (NASDAQ:
DAIO) today announced a net income for the fourth quarter of 2002 of $251,000,
or $0.03 per share, compared to a net loss of $1.4 million, or ($0.18) per
share, for the fourth quarter of 2001. Revenues for the fourth quarter of 2002
were $6.2 million, compared to $6.0 million for the fourth quarter of 2001.
Gross margins increased in dollars and as a percentage of sales for the fourth
quarter of 2002 compared with the same period of 2001, primarily due to reduced
costs resulting from the Company's restructuring actions taken during the last
year, unfavorable inventory reserves recorded in 2001 and the impact of the
weakening US dollar versus the Euro. Operating expenses were significantly
reduced due to the Company's restructuring actions partially offset by increases
in rent expense, due to rate increases and the expiration of a sublease.
Restructuring charges of $135,000 in the fourth quarter of 2002 compared with
$252,000 in the fourth quarter of 2001 were each associated with workforce
reductions.
"I am pleased to report success in managing Data I/O's return to profitability
and improving our cash position. The Company remains in a strong financial
position with a cash and short-term investment position of $5.4 million and no
debt at the end of the fourth quarter," stated Fred Hume, President and CEO. "I
am pleased to see key manufacturing new product customers making repeat
purchases of our products."
First 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 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
Thursday February 20, 2003 at 1:30 p.m. Pacific Time regarding its fourth
quarter results and the outlook for the first 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, 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.
###
DATA I/O CORPORTION
COMPARATIVE STATEMENTS OF EARNINGS
(in thousands except per share data)
Fourth Quarter Twelve Months Ended
--------------------------------- ----------------------------------
Percent Percent
12/31/02 12/31/01 Change 12/31/02 12/31/01 Change
--------------------------------- ----------------------------------
Net sales $6,209 $5,979 3.8% $22,838 $26,826 -14.9%
Gross margin 3,504 2,848 23.0% 11,282 11,748 -4.0%
Gross margin as percent of sales 56.4% 47.6% 49.4% 43.8%
Operating expenses:
Research & development 1,195 1,587 -24.7% 5,331 6,740 -20.9%
Selling, general and administrative 1,877 2,250 -16.6% 8,254 9,707 -15.0%
Provision for business restructure 135 252 -46.4% 632 1,211 -47.8%
--------------------- -----------------------
Operating income (loss) 297 (1,241) (2,935) (5,910)
Non-operating income (expense):
Interest, net 12 41 69 223
Foreign currency exchange (122) (38) (301) (99)
--------------------- -----------------------
Income/(loss) from operations before taxes 187 (1,238) (3,167) (5,786)
Income tax expense (64) 132 (61) 224
--------------------- -----------------------
Net income/(loss) $251 $(1,370) $(3,106) $(6,010)
--------------------- -----------------------
Diluted earnings/(loss) per share $0.03 $(0.18) $(0.40) $(0.79)
Diluted weighted average shares outstanding 7,783 7,614 7,704 7,572
CONDENSED BALANCE SHEET
(in thousands)
------------ -----------
12/31/02 12/31/01
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Cash and cash equivalents $ 4,383 $ 2,656
Short-term investments 1,076 3,236
Accounts receivable, net 4,328 5,666
Inventories 4,476 6,388
Other current assets 509 485
Land, building and equipment 1,508 1,741
Other long-term assets 87 168
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Total assets $16,367 $20,340
============ ===========
Current liabilities $ 5,647 $ 6,421
Deferred gain on sale of property 1,435 1,765
Shareholders' equity 9,285 12,154
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Total liabilities and shareholders' equity $16,367 $20,340
============ ===========
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
February 20, 2003 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