Operating Lease and Other Commitments

6 Months Ended

Jun. 30, 2011

Operating Lease and Other Commitments

NOTE 7 – OPERATING LEASE AND OTHER COMMITMENTS

Data I/O has purchase obligations for inventory and production costs as well as other obligations such as capital expenditures, service contracts, marketing, and development agreements. Arrangements are considered purchase obligations if a contract specifies all significant terms, including fixed or minimum quantities to be purchased, a pricing structure and approximate timing of the transaction. Most arrangements are cancelable without a significant penalty, and with short notice, typically less than 90 days. At June 30, 2011, the purchase and other obligations totaled $1,379,000.

Data I/O also has commitments under non-cancelable operating leases. In February 2011, we entered into an amended lease arrangement that reduced the amount of space leased in Redmond and extended the lease term through June 20, 2016. In June 2011, we entered into a new two-year lease for our Shanghai office. These amended terms are included in the operating lease table below.

Future annual lease payments at June 30, 2011:

	Operating Leases
(in thousands)
2011	$	576
2012		1,158
2013		987
2014		862
2015		805
Thereafter		394
Total	$	4,782