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): July 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 July 28, 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 SECOND QUARTER 2005 FINANCIAL RESULTS
Redmond, Wash., July 28, 2005 - Data I/O Corporation (NASDAQ: DAIO), the leading
provider of manual and automated device programming systems, today announced
financial results for the quarter ended June 30, 2005.
Revenues were $6.6 million, compared with $6.7 million in the first quarter of
2005. Gross margins in the second quarter of 2005 were 59.2 percent, compared
with 59.6 percent in the prior quarter.
In accordance with U.S. generally accepted accounting principles (GAAP), net
income in the second quarter of 2005 was $53,000 or $0.01 per share, compared
with net income of $39,000 in the first quarter of 2005.
Total cash and short-term investments were $4.6 million at June 30, 2005. The
company remains debt-free.
"During the second quarter, we began regular shipments of our
ImageWriter(TM)200, and have populated the sales channels with demonstration
systems as part of its market launch," said Fred Hume, president and CEO. "Data
I/O's ImageWriter(TM) in-systems programming solution is targeted to users of
programmable microcontrollers in industrial controls and automotive electronics
manufacturers, a customer group that has seen continued growth over the past
year. We will be adding new options and capabilities to the ImageWriter family
in the third and fourth quarters of 2005."
"We also shipped our first PS-588(TM) product during the second quarter. The
PS-588 provides our customers a much higher level of throughput for volume
programming than previously available at a lower cost per part. We expect to see
continued growth in automated programming product sales in the quarters to come.
"In addition, we introduced High Performance Socket (HPS) Adapters for our
Pro-LINE RoadRunner(TM) and PS-FlashCORE(TM) automated programming systems and
for our FlashPAK(TM) desktop programmer. These adapters are designed for use in
low- to-medium volume production environments, where continuous uptime and high
programming yields are required to maximize production outputs," he said.
"We have completed the operations transition and now expect to see increased
revenues from our programming service operation in Brazil, which provides
programming support for a wireless manufacturer there. Data I/O continues to
have a strong manufacturing presence at other emerging electronics manufacturing
centers in China, Korea, Mexico and Eastern Europe," said Hume.
Third Quarter 2005 Guidance
Data I/O currently expects that revenues in the third quarter of 2005 will grow
modestly over the second quarter, with gross margins expected to be in line with
the previous quarter.
Conference Call Information
A conference call discussing the second quarter 2005 financial results will
follow this release today at 2:00 p.m. Pacific time/5:00 p.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 (203)
369-3811. 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)
Second Quarter Six Months Ended
------------------------------------------- ----------------------------------------
Percent Percent
6/30/2005 6/30/2004 Change 6/30/2005 6/30/2004 Change
--------------- -------------- ------------ -------------- ------------ ------------
Net sales $6,642 $6,895 -3.7% $13,379 $13,729 -2.5%
Gross margin 3,933 3,510 12.1% 7,947 7,223 10.0%
Gross margin as percent of sales 59.2% 50.9% 59.4% 52.6%
Operating expenses:
Research & development 1,350 1,177 14.7% 2,687 2,381 12.9%
Selling, general and administrative 2,378 2,121 12.1% 5,010 4,294 16.7%
Provision for business restructure 55 70 55 70
--------------- -------------- -------------- ------------
Operating income 150 142 195 478
Non-operating income (expense):
Interest, net 11 7 32 41
Foreign currency exchange (3) (5) (24) (18)
--------------- -------------- -------------- ------------
Income from operations before taxes 158 144 203 501
Income tax expense 105 40 111 102
--------------- -------------- -------------- ------------
Net income $53 $104 $92 $399
=============== ============== ============== ============
Total diluted earnings per share $0.01 $0.01 $0.01 $0.05
Diluted weighted average shares
outstanding 8,486 8,286 8,518 8,350
CONDENSED BALANCE SHEET
(in thousands)
6/30/2005 12/31/2004
------------ ------------
Cash and cash equivalents $3,774 $5,534
Short-term investments 850 1,037
Accounts receivable, net 5,712 4,489
Inventories 3,748 4,139
Other current assets 497 652
Land, building and equipment 2,411 1,970
Other long-term assets 21 26
------------ ------------
Total assets $17,013 $17,847
============ ============
Current liabilities $4,950 $5,601
Deferred gain on sale of property 582 776
Shareholders' equity 11,481 11,470
------------ ------------
Total liabilities and shareholders' equity $17,013 $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
August 1, 2005 By /s/Joel S. Hatlen
Joel S. Hatlen
Vice President - Finance
Chief Financial Officer
Secretary and Treasurer