Data I/O Reports First Quarter Results

Apr 23, 2001, 01:00 ET from Data I/O Corporation

    REDMOND, Wash., April 23 /PRNewswire Interactive News Release/ -- Data
 I/O(R) Corporation (Nasdaq:   DAIO) today announced a net loss for the first
 quarter of 2001 of $2.1 million, or ($0.28) per share, compared to a net loss
 of $5.1, million, or ($0.69) per share, for the first quarter of 2000.
     Revenues for the first quarter of 2001 were $7.9 million, compared to the
 $5.6 million for the first quarter of 2000 and $10.2 million for the fourth
 quarter of 2000.  While revenues were up from the first quarter of 2000, the
 decline from the fourth quarter is attributed to the Company experiencing a
 reduction in the orders for automated programming equipment.  The Company
 believes this to be primarily due to a general economic slowing in the
 wireless communications industry, among contract manufacturers and in other
 sectors of the electronics industry.  A number of the Company's major
 customers indicated that they had excess capacity and were delaying purchases
 of automated equipment.
     For the first quarter of 2000 year comparison, the adoption of SAB 101
 resulted in the deferral of recognition of $972,000 million in revenues and
 $561,000 in cost of sales that were previously reported in the first quarter
 of 2000 before the recording the $2.5 million cumulative accounting change.
     Gross margins increased in dollars for the first quarter of 2001 compared
 with the same period of 2000, primarily due to the increased sales volume.
 Partially offsetting this gross margin dollar increase was a $630,000 charge
 to reserve excess or obsolete inventory, which accounts for the decline in the
 gross margin percentage.
 
     Second Quarter 2001 Forward-Looking Statement:  For the second quarter of
 2001, the Company expects that the current economic conditions and uncertainty
 continue to represent a challenge to its sales efforts.  As announced on
 April 17, 2001, the Company has taken a number of strategic actions in the
 second quarter to immediately reduce its breakeven point by nearly 25%.  This
 should position the Company's breakeven to be around the $7.8 million revenue
 level.  This is roughly where the Company expects to be for the second quarter
 before an expected charge associated with these actions of approximately
 $500,000.  The Company remains in a strong financial position with a cash
 position of $4.5 million and no debt at the end of the first quarter.
     "The strategic actions being taken are aimed at refocusing the company's
 investment in long-term growth markets by streamlining worldwide operations,
 ensuring a reduction of the breakeven point during the second quarter and
 providing the operating and financial flexibility needed to deliver long-term
 value to customers, employees and stockholders without compromising quality of
 service," stated Fred Hume, President and CEO.  "This operational
 repositioning was mandated by the impact on product demand of the current
 economic slowdown and decline in capital spending."
 
     Web-Cast Conference Call: The Company has scheduled a conference call for
 Thursday, April 26, 2001 at 1:30 p.m. Pacific Time regarding its first quarter
 results and operations 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, changes in product portfolio 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, possible delays or non-deliveries of key components by
 suppliers, changes in economic conditions and market demand, pricing and other
 activities by competitors, retention of key personnel, 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:  Data I/O Corporation is the world leader in device
 programming and handling solutions, providing a comprehensive product offering
 from design through manufacturing use of programmable integrated circuits.
 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 CORPORATION
                       COMPARATIVE STATEMENTS OF EARNINGS
                      (in thousands except per share data)
 
                                                      First Quarter
                                                                      Percent
                                            3/31/2001     3/30/2000   Change
     Net sales                               $7,883           5,630     40.0%
     Gross margin                             2,735           2,247     21.7%
     Gross margin as percent of sales          34.7%           39.9%    -5.2%
     Operating expenses:
      Research & development                  1,939           2,421     19.9%
      Selling, general and administrative     2,995           2,528    -18.5%
     Operating loss                          (2,199)         (2,702)
     Non-operating income(expense):
      Interest, net                              58             167
      Foreign currency exchange                  (6)             (3)
     Loss before taxes                       (2,147)         (2,538)
 
     Income tax expense                           2              13
     Loss before accounting change          ($2,149)        ($2,551)
 
     Accounting Change for SAB 101                0          (2,531)
     Net loss                               ($2,149)        ($5,082)
 
     Diluted earnings per share              $(0.28)         ($0.69)
 
     Diluted weighted average shares
      outstanding                             7,560           7,347
 
 
                            CONDENSED BALANCE SHEET
                                 (in thousands)
 
                                                         3/31/01    12/28/00
     Cash and cash equivalents                           $2,238       $3,133
     Short-term investments                               2,251        1,944
     Accounts receivable, net                             9,320       10,627
     Inventories                                          7,893        9,167
     Current deferred tax asset and other assets            425          534
     Property, plant and equipment, net                   2,469        2,190
     Other long-term assets, net                            889        1,151
      Total assets                                      $25,485      $28,746
 
     Current liabilities, excluding current portion
      of funded debt                                     $7,547       $8,613
     Total funded debt                                       --           --
     Deferred gain on sale of property                    2,012        2,094
     Shareholders' equity                                15,926       18,039
      Total liabilities and shareholders' equity        $25,485      $28,746
 
                     MAKE YOUR OPINION COUNT -  Click Here
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SOURCE Data I/O Corporation
    REDMOND, Wash., April 23 /PRNewswire Interactive News Release/ -- Data
 I/O(R) Corporation (Nasdaq:   DAIO) today announced a net loss for the first
 quarter of 2001 of $2.1 million, or ($0.28) per share, compared to a net loss
 of $5.1, million, or ($0.69) per share, for the first quarter of 2000.
     Revenues for the first quarter of 2001 were $7.9 million, compared to the
 $5.6 million for the first quarter of 2000 and $10.2 million for the fourth
 quarter of 2000.  While revenues were up from the first quarter of 2000, the
 decline from the fourth quarter is attributed to the Company experiencing a
 reduction in the orders for automated programming equipment.  The Company
 believes this to be primarily due to a general economic slowing in the
 wireless communications industry, among contract manufacturers and in other
 sectors of the electronics industry.  A number of the Company's major
 customers indicated that they had excess capacity and were delaying purchases
 of automated equipment.
     For the first quarter of 2000 year comparison, the adoption of SAB 101
 resulted in the deferral of recognition of $972,000 million in revenues and
 $561,000 in cost of sales that were previously reported in the first quarter
 of 2000 before the recording the $2.5 million cumulative accounting change.
     Gross margins increased in dollars for the first quarter of 2001 compared
 with the same period of 2000, primarily due to the increased sales volume.
 Partially offsetting this gross margin dollar increase was a $630,000 charge
 to reserve excess or obsolete inventory, which accounts for the decline in the
 gross margin percentage.
 
     Second Quarter 2001 Forward-Looking Statement:  For the second quarter of
 2001, the Company expects that the current economic conditions and uncertainty
 continue to represent a challenge to its sales efforts.  As announced on
 April 17, 2001, the Company has taken a number of strategic actions in the
 second quarter to immediately reduce its breakeven point by nearly 25%.  This
 should position the Company's breakeven to be around the $7.8 million revenue
 level.  This is roughly where the Company expects to be for the second quarter
 before an expected charge associated with these actions of approximately
 $500,000.  The Company remains in a strong financial position with a cash
 position of $4.5 million and no debt at the end of the first quarter.
     "The strategic actions being taken are aimed at refocusing the company's
 investment in long-term growth markets by streamlining worldwide operations,
 ensuring a reduction of the breakeven point during the second quarter and
 providing the operating and financial flexibility needed to deliver long-term
 value to customers, employees and stockholders without compromising quality of
 service," stated Fred Hume, President and CEO.  "This operational
 repositioning was mandated by the impact on product demand of the current
 economic slowdown and decline in capital spending."
 
     Web-Cast Conference Call: The Company has scheduled a conference call for
 Thursday, April 26, 2001 at 1:30 p.m. Pacific Time regarding its first quarter
 results and operations 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, changes in product portfolio 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, possible delays or non-deliveries of key components by
 suppliers, changes in economic conditions and market demand, pricing and other
 activities by competitors, retention of key personnel, 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:  Data I/O Corporation is the world leader in device
 programming and handling solutions, providing a comprehensive product offering
 from design through manufacturing use of programmable integrated circuits.
 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 CORPORATION
                       COMPARATIVE STATEMENTS OF EARNINGS
                      (in thousands except per share data)
 
                                                      First Quarter
                                                                      Percent
                                            3/31/2001     3/30/2000   Change
     Net sales                               $7,883           5,630     40.0%
     Gross margin                             2,735           2,247     21.7%
     Gross margin as percent of sales          34.7%           39.9%    -5.2%
     Operating expenses:
      Research & development                  1,939           2,421     19.9%
      Selling, general and administrative     2,995           2,528    -18.5%
     Operating loss                          (2,199)         (2,702)
     Non-operating income(expense):
      Interest, net                              58             167
      Foreign currency exchange                  (6)             (3)
     Loss before taxes                       (2,147)         (2,538)
 
     Income tax expense                           2              13
     Loss before accounting change          ($2,149)        ($2,551)
 
     Accounting Change for SAB 101                0          (2,531)
     Net loss                               ($2,149)        ($5,082)
 
     Diluted earnings per share              $(0.28)         ($0.69)
 
     Diluted weighted average shares
      outstanding                             7,560           7,347
 
 
                            CONDENSED BALANCE SHEET
                                 (in thousands)
 
                                                         3/31/01    12/28/00
     Cash and cash equivalents                           $2,238       $3,133
     Short-term investments                               2,251        1,944
     Accounts receivable, net                             9,320       10,627
     Inventories                                          7,893        9,167
     Current deferred tax asset and other assets            425          534
     Property, plant and equipment, net                   2,469        2,190
     Other long-term assets, net                            889        1,151
      Total assets                                      $25,485      $28,746
 
     Current liabilities, excluding current portion
      of funded debt                                     $7,547       $8,613
     Total funded debt                                       --           --
     Deferred gain on sale of property                    2,012        2,094
     Shareholders' equity                                15,926       18,039
      Total liabilities and shareholders' equity        $25,485      $28,746
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X00875126
 
 SOURCE  Data I/O Corporation