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): October 30, 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 12.

A copy of a press release made on October 30, 2003 entitled "Data I/O reports
fourth consecutive quarter of profitability" 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 (October 30, 2003) -- Data I/O(R) Corporation (NASDAQ: DAIO)
today announced a net income for the third quarter of 2003 of $319,000, or $0.04
per share,  compared to a net loss of  $833,000,  or ($0.11) per share,  for the
third quarter of 2002. Revenues for the third quarter of 2003 were $6.4 million,
compared to $6.4 million for the third quarter of 2002.

Gross  margins  increased in dollars and as a percentage  of sales for the third
quarter of 2003  compared  with the same  period of 2002,  primarily  due to the
reduced costs  resulting from the Company's  restructuring  actions taken during
the last  year  and the  increased  volume  of  automated  systems  and  related
aftermarket  sales. The reduction in inventories  resulted in unfavorable  labor
and overhead  variances,  which partially  offset the margin  improvement.  Also
impacting  the margin  percentage  was the sales mix  including  lower  sales of
programmer aftermarket and software that tend to have higher margins.

Operating expenses declined $422,000 for the third quarter of 2003 compared with
the same period of 2002 excluding the restructuring charge, primarily due to the
reduced costs  resulting from the Company's  restructuring  actions taken during
the last year. The third quarter of 2002 included a restructuring related charge
of $497,000.

"I am pleased to report Data I/O's fourth consecutive  quarter of profitability.
I am further  encouraged by success during the quarter with initial sales to new
global  customers.   Much  of  this  success  results  from  our  expanding  the
capabilities of our programming architecture and the focus on newer technologies
such as NAND flash and support for M-Systems  DiskOnChip(R)  technology," stated
Fred Hume, President and CEO.

Fourth  Quarter  2003  Forward-Looking  Statement:  Management  is  committed to
long-term  profitable  growth and believes  that the  financial  results for the
current  quarter  will  continue  to improve and be  generally  in line with the
previous quarter. The Company remains in a strong financial position with a cash
and short-term investment position of $6.1 million and no debt at the end of the
third quarter.

Web-Cast  Conference  Call:  The Company has  scheduled  a  conference  call for
Wednesday,  November  5,  2003 at 1:30 p.m.  Pacific  Time  regarding  its third
quarter  results  and a  business  update  for the  third  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,   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.

Corporate Information: Celebrating over 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
                       (in thousands except per share data)

                                                          Third Quarter                         Nine Months Ended
                                               ------------- ------------ ---------- -------------- --------------- ---------
                                                                          Percent                                   Percent
                                               9/30/2003     9/30/2002    Change     9/30/2003      9/30/2002       Change
                                               ------------- ------------ ---------- -------------- --------------- ---------
Net sales                                         $6,360        $6,443        -1.3%    $18,092        $16,629           8.8%
Gross margin                                       3,328         3,271         1.7%     10,064          7,778          29.4%
Gross margin as percent of sales                   52.3%         50.8%         1.5%      55.6%          46.8%           8.8%
Operating expenses:
Research & development                             1,294         1,430        -9.5%      3,534          4,136         -14.6%
Selling, general and administrative                1,823         2,109       -13.6%      5,551          6,377         -13.0%
    Provision for business restructuring               0           497                    (27)            497
                                               ------------- ------------            -------------- ---------------
Operating income (loss)                              211          (765)                  1,006         (3,232)
Non-operating income (expense):
Interest, net                                         15            16                      57             57
Foreign currency exchange                            (21)         (121)                   (102)          (179)
                                               ------------- ------------            -------------- ---------------
Income/(loss) from operations before taxes           205          (870)                    961         (3,354)

Income tax expense                                  (114)          (37)                    (10)             3
                                               ------------- ------------            -------------- ---------------
Net income/(loss)                                   $319         ($833)                   $971        ($3,357)
                                               ============= ============            ============== ===============

                                               ------------- ------------            -------------- ---------------
Total diluted earnings (loss) per share             $0.04        $(0.11)                  $0.12         $(0.44)
                                               ============= ============            ============== ===============

Diluted weighted average shares outstanding         8,243         7,733                   8,026          7,682

                                                   CONDENSED BALANCE SHEET
                                                        (in thousands)

                                                                  9/30/03     12/31/02
                                                                ------------ ------------
Cash and cash equivalents                                        $  4,279     $  4,383
Short-term investments                                              1,830        1,076
Accounts receivable, net                                            5,519        4,328
Inventories                                                         4,173        4,476
Other current assets                                                  176          509
Property, plant and equipment, net                                  1,160        1,508
Other long-term assets, net                                            27           87
                                                                ------------ ------------
         Total assets                                             $17,164      $16,367
                                                                ============ ============

Current liabilities                                              $  5,437     $  5,647
Total funded debt                                                       -            -
Deferred gain on sale of property                                   1,189        1,435
Shareholders' equity                                               10,538        9,285
                                                                ------------ ------------
         Total liabilities and shareholders' equity               $17,164      $16,367
                                                                ============ ============


         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

November 3, 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