-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, S3bfkdgvbUjGQGYGJyxHjZ5vAcKrQs0ITpKEKbHfyM0xBAIeZs6ADDmHZFO2aO4E 4bj48ECmJXefWq/bnH4PuA== 0000912057-97-016834.txt : 19970513 0000912057-97-016834.hdr.sgml : 19970513 ACCESSION NUMBER: 0000912057-97-016834 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970327 FILED AS OF DATE: 19970512 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: DATA I/O CORP CENTRAL INDEX KEY: 0000351998 STANDARD INDUSTRIAL CLASSIFICATION: INSTRUMENTS FOR MEAS & TESTING OF ELECTRICITY & ELEC SIGNALS [3825] IRS NUMBER: 910864123 STATE OF INCORPORATION: WA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-10394 FILM NUMBER: 97600690 BUSINESS ADDRESS: STREET 1: 10525 WILLOWS RD NE STREET 2: P O BOX 97046 CITY: REDMOND STATE: WA ZIP: 98073-9746 BUSINESS PHONE: 2068816444 10-Q 1 FORM 10-Q - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter ended MARCH 27, 1997 Commission File No. 0-10394 DATA I/O CORPORATION (Exact name of registrant as specified in its charter) Washington 91-0864123 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 10525 Willows Road N.E., Redmond, Washington, 98073-9746 (address of principal executive offices, Zip Code) Registrant's telephone number, including area code (206) 881-6444 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ----- ----- 6,838,090 shares of no par value Common Stock outstanding as of May 5, 1997 Page 1 of 16 Exhibit Index on Page 15 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- DATA I/O CORPORATION FORM 10-Q FOR THE QUARTER ENDED MARCH 27, 1997 INDEX PART I - FINANCIAL INFORMATION PAGE ---- Item 1. Financial Statements (unaudited) 3 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 8 PART II - OTHER INFORMATION Item 1. Legal Proceedings 13 Item 2. Changes in Securities 13 Item 3. Defaults Upon Senior Securities 13 Item 4. Submission of Matters to a Vote of Security Holders 13 Item 5. Other Information 13 Item 6. Exhibits and Reports on Form 8-K 13 Signatures 14 Exhibit Index 15 Exhibit 11 16 Page 2 PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS DATA I/O CORPORATION CONSOLIDATED BALANCE SHEETS - -------------------------------------------------------------------------------- Mar. 27, Dec. 26, 1997 1996 - -------------------------------------------------------------------------------- (in thousands, except share data) (unaudited) (note 1) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 5,242 $4,048 Trade accounts receivable, less allowance for doubtful accounts of $351 and $362 11,446 9,796 Inventories 7,600 8,260 Recoverable income taxes 597 474 Deferred income taxes 750 762 Other current assets 802 997 -------- -------- TOTAL CURRENT ASSETS 26,437 24,337 Land held for sale 2,455 2,437 Property, plant and equipment - net 9,153 9,430 Other assets 2,780 3,115 -------- -------- TOTAL ASSETS $40,825 $39,319 -------- -------- -------- -------- LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 1,898 $ 1,906 Accrued compensation 3,120 2,587 Deferred revenue 5,699 5,494 Other accrued liabilities 3,322 3,102 Accrued costs of business restructuring 144 312 Income taxes payable 626 777 Notes payable 2,002 105 -------- -------- TOTAL CURRENT LIABILITIES 16,811 14,283 LONG TERM DEBT 1,500 LONG TERM OTHER PAYABLES 518 503 DEFERRED INCOME TAXES 642 474 STOCKHOLDERS' EQUITY: Preferred stock - Authorized, 5,000,000 shares, including 200,000 shares of Series A Junior Participating Issued and outstanding, none Common stock, at stated value - Authorized, 30,000,000 shares Issued and outstanding, 6,835,965 and 6,777,720 shares, respectively 15,529 15,247 Retained earnings 6,894 6,845 Currency translation adjustments 431 467 -------- -------- TOTAL STOCKHOLDERS' EQUITY 22,854 22,559 -------- -------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $40,825 $39,319 -------- -------- -------- -------- See notes to consolidated financial statements Page 3 DATA I/O CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - -------------------------------------------------------------------------------- Mar. 27, Mar. 28, FOR THE QUARTERS ENDED 1997 1996 - -------------------------------------------------------------------------------- (in thousands, except per share data) Net sales $15,075 $15,656 Cost of goods sold 7,577 8,105 ------- ------- Gross margin 7,498 7,551 Operating expenses: Research and development 2,880 2,465 Selling, general and administrative 4,562 5,014 ------- ------- Total operating expenses 7,442 7,479 ------- ------- Operating income 56 72 Non-operating income (expense): Interest income 60 63 Interest expense (51) (54) Foreign currency exchange 15 2 ------- ------- Total non-operating income (expense) 24 11 ------- ------- Income before taxes 80 83 Income tax expense 32 21 ------- ------- Net income $48 $62 ------- ------- ------- ------- Earnings per share: Net income $0.01 $0.01 ------- ------- ------- ------- Weighted average shares outstanding 6,914 7,325 ------- ------- ------- ------- See notes to consolidated financial statements. Page 4 DATA I/O CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - -------------------------------------------------------------------------------- Mar. 27, Mar. 28, 1997 1996 - -------------------------------------------------------------------------------- (in thousands) OPERATING ACTIVITIES: Net income $48 $62 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 901 1,018 Deferred income taxes and tax refunds (78) (480) Deferred revenue 205 75 Changes in current items other than cash and cash equivalents: Trade accounts receivable (1,648) 2,040 Inventories 660 (772) Other current assets 194 63 Accounts payable and accrued liabilities 747 (213) Business restructure (169) (419) ------- ------- Net cash provided by operating activities 860 1,374 INVESTING ACTIVITIES: Additions to property, plant and equipment (345) (629) ------- ------- Cash used for investing activities (345) (629) FINANCING ACTIVITIES: Additions to (repayment of) notes payable 397 (4) Sale of common stock 178 154 Repurchase of common stock (1,433) Proceeds from exercise of stock options 103 317 ------- ------- Cash provided by (used for) financing activities 678 (966) ------- ------- Increase (decrease) in cash and cash equivalents 1,193 (221) Effects of exchange rate changes on cash 1 (2) Cash and cash equivalents - Beginning of quarter 4,048 4,496 ------- ------- Cash and cash equivalents - End of quarter $5,242 $4,273 ------- ------- ------- ------- SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $58 $16 Income taxes $83 $434 See notes to consolidated financial statements. Page 5 DATA I/O CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NOTE 1 - FINANCIAL STATEMENT PREPARATION The financial statements as of March 27, 1997 and March 28, 1996, have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). These statements are unaudited but, in the opinion of management, include all adjustments (consisting of normal recurring adjustments and accruals) necessary to present fairly the results for the periods presented. The balance sheet at December 26, 1996 has been derived from the audited financial statements at that date. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such SEC rules and regulations. Operating results for the quarter ended March 27, 1997 are not necessarily indicative of the results that may be expected for the year ending December 25, 1997. These financial statements should be read in conjunction with the annual audited financial statements and the accompanying notes included in the Company's Form 10-K for the year ended December 26, 1996. NOTE 2 - CLASSIFICATIONS Certain prior period's balances have been reclassified to conform to the presentation used in the current period. NOTE 3 - INVENTORIES Inventories consisted of the following components (in thousands): Mar. 27, Dec. 26, 1997 1996 ------- ------- Raw material $3,999 $3,947 Work-in-process 2,285 2,480 Finished goods 1,316 1,833 ------- ------- $7,600 $8,260 ------- ------- ------- ------- NOTE 4 - PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following components (in thousands): Mar. 27, Dec. 26, 1997 1996 ------- ------- Land $ 910 $ 910 Building and improvements 7,608 7,605 Equipment 21,470 21,554 ------- ------- 29,988 30,069 Less accumulated depreciation 20,835 20,639 ------- ------- $9,153 $9,430 ------- ------- ------- ------- NOTE 5 - ACCOUNTING FOR INCOME TAXES The Company's effective tax rate for the first quarter of 1997 differed from the statutory 34% tax rate primarily due to the Company's inability to record a benefit for foreign tax credits and a change in the tax valuation reserves. The valuation allowance for deferred tax assets decreased by approximately $180,000 during the first quarter to approximately $3.4 million. Page 6 NOTE 6 - IMPACT OF RECENTLY ISSUED ACOUNTING STANDARDS In February 1997, the Financial Accounting Standards Board issued Statement No. 128, Earnings per Share, which is required to be adopted after December 15, 1997. At that time the Company will be required to change the method currently used to compute earnings per share and to restate all prior periods. Under the new requirements for calculating primary earnings per share, the dilutive effect of stock options will be excluded. The impact of this change on primary and fully diluted earning per share for the quarters ended March 27, 1997 and March 28, 1996 is not expected to be material. Page 7 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS GENERAL SHARE REPURCHASE PROGRAM The Company announced on October 27, 1995 a share repurchase program which authorized the Company to repurchase up to 7.5% (approximately 570,000 shares) of its outstanding shares of common stock. On February 21, 1996 the Company announced an extension of the share repurchase program. The extension authorized the Company to repurchase up to an additional 8% (approximately 570,000 shares) of its outstanding common stock. These purchases may be executed through open market purchases at prevailing market prices, through block purchases or in privately negotiated transactions. Purchases may commence or be discontinued at any time. No repurchases were made during the quarter ending March 27, 1997. Cumulatively, the Company has repurchased 1,015,700 shares at a total cost of approximately $7.1 million. SALE OF HEADQUARTERS PROPERTY The Company announced on July 18, 1996 that it had reached an agreement to sell the land and building comprising its Redmond, Washington headquarters campus to a major real estate company. The transaction would include a leaseback of the building by Data I/O for ten years with options for an additional ten years. Data I/O's corporate headquarters campus includes the Company's 96,000 square foot building and approximately 79 acres of land. The Company had been marketing a portion of the land on its headquarters campus for the past five years and in 1995 decided to market the building to enhance the value of the entire property. Closing is scheduled for approximately May 9, 1997. As closing of the sale is subject to a number of conditions and government approvals, there can be no assurance that the sale will be consummated. If consummated, this sale for approximately $13.8 million is expected to result in a pre-tax gain of approximately $5.5 million. Approximately $2 million of this gain would be recognized upon the closing of the sale, with the balance amortized over the initial ten-year lease term. The Company expects to realize approximately $12.0 million in cash after payment of transaction fees and income taxes. FORWARD-LOOKING STATEMENTS Although most of the information contained in this report is historical, certain of the statements contain forward-looking statements. To the extent these statements express or imply, without limitation, product development and introduction plans, the Company's expectations for growth, estimates of future revenue, expenses, profit, cash flow, balance sheet items, backlog, forecasts of demand or market trends for the Company's various product categories and for the industries in which the Company operates or any other guidance on future periods, these statements are forward-looking and involve matters which are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed in such forward-looking statements. Readers of this report should consider, along with other relevant information, the risk factors identified by the Company under the caption "Risk Factors" in Item 1 and elsewhere in the Company's Annual Report on Form 10-K for the year ended December 26, 1996, and other risks identified from time to time in the Company's filings with the Securities and Exchange Commission, press releases and other communications. Page 8 RESULTS OF OPERATIONS NET SALES - ------------------------------------------------------------------------------- First Quarter ------------------------------------ Net sales by division (in thousands) 1997 1996 % Change - ------------------------------------------------------------------------------- Programming Systems Division: Non-automated programming systems (1) $7,950 $8,212 (3.19%) Automated programming systems 3,917 4,606 (14.96%) ------------------------------------ Total Programming Systems Division 11,867 12,818 (7.4%) Synario Design Automation Division (1) 1,923 1,807 6.4% Semiconductor Equip. Div. (Reel-Tech) 1,285 1,031 24.6% ------------------------------------ Net sales $15,075 $15,656 (3.7%) ------------------------------------ First Quarter ------------------------------------ Net sales by location (in thousands) 1997 1996 % Change - ------------------------------------------------------------------------------- United States $7,475 $8,075 (7.4%) % of total 49.6% 51.6% International $7,600 $7,581 0.3% % of total 50.4% 48.4% - ------------------------------------------------------------------------------- (1) Prior year's figures have been reclassified for comparability. Orders in the first quarter of 1997 increased approximately 12% to $16.7 million, compared with $14.9 million for the same period in 1996. Backlog grew by approximately $800,000 during the quarter to approximately $5 million at March 27, 1997. The Company believes the decline in overall Programming Systems Division sales was primarily due to a slowdown in capital spending by electronics manufacturing companies in the United States and Europe which reduced the demand for the Division's products. The Company believes that the economic slowdown in capital spending for electronics manufacturing equipment has bottomed out and is beginning to turn upward. The Company believes that increased competition, in areas where new Data I/O product introductions are not scheduled to occur until later in 1997, or where products are nearing the end of their product life cycles, is also affecting sales. The Company's current expectations are that these new products will not be available in production quantities until the second half of 1997 and early 1998. In addition, the Company believes the declines in non-automated programming systems also reflect the continuing market shift away from the Company's traditional line of higher-priced IC programmers for the engineering market, toward lower-priced programmers. As a result, the Company believes that until its new products are released and shipping in production quantities, overall demand for its programming systems will continue to be weak. The Company believes the market shift toward lower-priced IC programmers has been caused in part by advances in semiconductor processing technology that have lowered the barriers to entry in the programmer business over the last several years. This has caused new market entrants to appear regularly, each trying to carve out a niche. New entrants cause downward price pressure, and each cycle of new competitors lowers the acceptable price of a conventional IC programmer in the customer's view. In addition, the Company believes that technological improvements in personal computers and design software tools have caused a shift in the demand for IC design tools by engineering design teams away from hardware tools in favor of increased software design tools. These industry changes had, and are continuing to have, an adverse effect on the Page 9 Company's IC programmer sales and gross margins, especially because the Company's products historically have been oriented toward hardware tools and, within hardware tools, toward higher-priced IC programmers. However, the Company believes that recent changes in programmable IC technology, such as increasingly complex logic ICs lower voltage requirements and higher pin counts, and the increasing need for higher quality and high volume programming by users of programmable ICs means that there is a significant market need for more sophisticated programmers with new programming technology and automated programming systems. The Company currently has development projects underway for new programmer and automation technology to address the needs created by these technology changes. The first of these products, the ProMaster 970, a fine pitch automated programming system was introduced at the Nepcon trade show in February. The Company's Semiconductor Equipment products, acquired as part of the Reel-Tech acquisition, experienced strong demand with orders increasing 188% during the first quarter of 1997 compared with the same period in 1996. The Company believes the market for semiconductor equipment, after experiencing several quarters of a slow down in capital spending, has turned around. The Company believes this favorable market condition is continuing; however due to the cyclical nature of demand for ICs, the activities of competitors and other factors, there can be no assurance that strong demand for this equipment will continue. The increase in international sales was partially offset by the negative translation impact of foreign currency exchange rate changes due primarily to the strengthening of the U.S. Dollar versus the Japanese Yen and the German Mark. These changes reduced translated sales by approximately $285,000 during the first quarter of 1997 compared to 1996. GROSS MARGIN (in thousands) First Quarter First Quarter 1997 Change 1996 - -------------------------------------------------------------------------------- Gross Margin $7,498 (0.7%) $7,551 Percentage of net sales 49.7% 48.2% - -------------------------------------------------------------------------------- Gross margin declined slightly while gross margin as a percentage of net sales for the first quarter of 1997 increased compared to the first quarter of 1996 primarily due to the decreased sales volume being partially offset by savings from the closure of a facility in the United Kingdom. RESEARCH AND DEVELOPMENT (in thousands) First Quarter First Quarter 1997 Change 1996 - -------------------------------------------------------------------------------- Research and development $2,880 16.8% $2,465 Percentage of net sales 19.1% 15.7% - -------------------------------------------------------------------------------- The increase in research and development spending compared to the first quarter of 1996 is primarily due to increased personnel and product development costs, related to the Company's continued aggressive investment in new technology. The Company expects to continue its significant investment in research and development activities during 1997 in preparation for the new product releases. The Company believes it is essential to invest in research and development to support its existing products and to create new products as markets develop and technologies change. The Company is focusing its research and development efforts in its strategic growth markets, namely automated handling systems for the manufacturing environment, Windows-based EDA software design tools, lower-priced IC programmers and semiconductor equipment. Page 10 SELLING, GENERAL AND ADMINISTRATIVE (in thousands) First Quarter First Quarter 1997 Change 1996 - -------------------------------------------------------------------------------- Selling, general & administrative $4,562 (9.0%) $5,014 Percentage of net sales 30.3% 32.0% - -------------------------------------------------------------------------------- The decrease in selling, general and administrative expenditures in the first quarter of 1997 is due primarily to lower sales commissions due to the lower volume of sales during the quarter and the Company's cost control efforts during the first quarter. In addition, the increased value of the U.S. Dollar versus the Japanese Yen and German Mark also contributed to the decrease in translated expenditures during the quarter. INTEREST (in thousands) First Quarter First Quarter 1997 Change 1996 - -------------------------------------------------------------------------------- Interest income $60 (4.8%) $63 Interest expense $51 (5.6%) $54 - -------------------------------------------------------------------------------- INCOME TAXES (in thousands) First Quarter First Quarter 1997 Change 1996 - -------------------------------------------------------------------------------- Income taxes $32 52.4% $21 Effective tax rate 40.0% 25.3% - -------------------------------------------------------------------------------- The Company's effective tax rate for the first quarter of 1997 differed from the statutory 34% tax rate primarily due to the Company's inability to record a benefit for foreign tax credits and a change in the tax valuation reserves. Tax valuation reserves decreased by approximately $180,000 during the quarter. The Company has valuation reserves of $3.4 million that may reverse as the Company records income. The Company believes the potential reversal of these valuation reserves, if the company is profitable, may substantially reduce its effective tax rate from the statutory rate during the balance of 1997. NET INCOME AND EARNINGS PER SHARE (in thousands) First Quarter First Quarter 1997 Change 1996 - -------------------------------------------------------------------------------- Net income $48 (22.6%) $62 Earnings per share $0.01 $0.01 - -------------------------------------------------------------------------------- Net income was relatively unchanged compared to the first quarter of 1996 as the decrease in net sales was offset by improvements in the gross margin and the increase in research and development spending was offset by decreases in selling, general and administrative expenses. Page 11 INFLATION AND CHANGES IN FOREIGN CURRENCY EXCHANGE RATES Historically, the Company has been able to offset the impact of inflation through efficiency increases and price adjustments. Increasing price competition, especially in IC programmers, is currently diminishing and may continue to diminish the Company's ability to offset the impacts of inflation in the future. Sales and expenses incurred by foreign subsidiaries are denominated in the subsidiary's local currency and translated into U.S. dollar amounts at average rates of exchange during the year. To date the foreign currency rate changes have not significantly impacted the Company's profitability. This is because approximately 20% of the Company's sales are made by foreign subsidiaries and independent currency fluctuations tend to minimize the translation effect of any individual currency exchange fluctuations, and the effect of individual rate changes on sales and expenses tend to offset each other. Additionally, the Company hedges its foreign currency exposure on the sales of inventory and certain loans to its foreign subsidiaries through the use of foreign exchange contracts. FINANCIAL CONDITION LIQUIDITY AND CAPITAL RESOURCES March 27, Dec. 26, (in thousands) 1997 Change 1996 - -------------------------------------------------------------------------------- Working capital $9,626 ($428) $10,054 Total debt $2,002 $397 $1,605 - -------------------------------------------------------------------------------- Working capital decreased during the first quarter of 1997 primarily due to the reclassification of a $1.5 million note payable from long term to short term. This decrease was partially offset by funds provided by operations. The Company's trade accounts receivable increased by approximately $1.7 million during the first quarter. This increase was primarily due to the timing of sales volume during the first quarter of 1997. The Company decreased its inventory level by approximately $660,000 during the first quarter. This decrease was primarily due to a continuing effort to reduce inventories in response to lower sales volume. The Company's accrued expenses increased primarily due to the timing of payroll payment. As of March 27, 1997, the Company had total debt of $2 million or approximately 9% of its $23 million in equity. Of this debt, $1.5 million is a note payable due in 1998 for the balance of the purchase price of the CAD/CAM Group. The remaining $500,000 is current debt, consisting entirely of borrowings on the Company's $1.3 million foreign line of credit. No borrowings were outstanding under the Company's $8.0 million U.S. line of credit. The U.S. line of credit matures May 31, 1997. The foreign line of credit matures in November 1997. Historically, these credit lines have been structured as short-term and have been renewed on their maturity dates. The Company currently expects to be able to renew these lines of credit on maturity under substantially the same terms as those presently in place. The Company estimates that capital expenditures for property, plant and equipment during the remainder of 1997 will be approximately $1.5 million. Such expenditures are currently expected to be funded from internally generated funds and, if necessary, borrowings under the Company's existing credit lines. Although the Company fully expects that such expenditures will be made, it has purchase commitments for only a small portion of this amount. At March 27, 1997, the Company's material short-term unused sources of liquidity consisted of approximately $5.2 million in cash and cash equivalents, available borrowings of $8.0 million under its U.S. line of credit and available borrowings of approximately $800,000 under its foreign line of credit. The Company believes that cash, cash flow from operations and borrowings available under its U.S. and foreign lines of credit will be sufficient to fund working capital needs, service existing debt, finance planned capital expenditures, fund the Company's share repurchase program, fund its remaining restructure accrued liabilities, and fund the Reel-Tech contingent payment obligations. In addition, if the Company is successful in selling its property held for sale, additional capital will be available. Page 12 PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS None ITEM 2. CHANGES IN SECURITIES None ITEM 3. DEFAULTS UPON SENIOR SECURITIES None ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS None ITEM 5. OTHER INFORMATION None ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K PAGE (a) Exhibits 11. Statement Regarding Computation of Earnings Per Share 16 (b) Reports on Form 8-K None Page 13 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. DATA I/O CORPORATION (REGISTRANT) DATED: May 7, 1996 By:/s/Alan J. Beauchamp Alan J. Beauchamp Vice President Finance and Administration Chief Financial Officer Secretary and Treasurer Page 14 EXHIBIT INDEX EXHIBIT NUMBER TITLE PAGE NUMBER - --------------- ---------------------------------------- ----------- 11 Statement Regarding Computation of 16 Earnings per Share Page 15 EX-11 2 EXHIBIT 11 EXHIBIT 11 DATA I/O CORPORATION COMPUTATION OF EARNINGS PER SHARE Earnings per share reported in Form 10-Q for the quarters ended March 27, 1997, and March 28, 1996 are based on the following (in thousands): Mar. 27, Mar. 28, Primary and fully diluted: 1997 1996 -------------------------- -------- -------- Weighted Average Shares Outstanding 6,817 7,053 Dilutive Effect of Stock Options 97 272 --------- -------- Weighted Average Common and Equivalent Shares Outstanding 6,914 7,325 --------- -------- --------- -------- Page 16 EX-27 3 FDS
5 1,000 3-MOS DEC-25-1997 DEC-27-1996 MAR-27-1997 5,242 0 11,797 351 7,600 26,437 29,988 20,835 40,825 16,811 0 0 0 15,529 7,325 40,825 15,075 15,075 7,577 7,433 (75) 9 51 80 32 48 0 0 0 48 .01 .01
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