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)

                 (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


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

"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  ""
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


                                                      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
                                                                    ------------   -----------
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
                                                                    ------------   -----------
                 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
                                                                    ------------   -----------
  Total liabilities and shareholders' equity                            $16,367       $20,340
                                                                    ============   ===========


         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
                                    Chief Executive Officer

                                    By //s//Joel S. Hatlen
                                    Joel S. Hatlen
                                    Vice President - Finance
                                    Chief Financial Officer
                                    Secretary and Treasurer