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 18, 2004

                              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                       98052
   (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 5 Pages

Item 12.

A copy of a press release made on February 18, 2004 entitled "Data I/O reports
4th quarter and 2003 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 (February 18, 2004) -- Data I/O(R)Corporation (NASDAQ: DAIO)
today  announced  net income for the year 2003 of $1,241,000 or $0.15 per share,
compared to a net loss of ($3,106,000), or ($0.40) per share, for the year 2002.
Revenues for the year 2003 were $24.7 million, compared to $22.8 million for the
year 2002.

Net  income  for the fourth  quarter  of 2003 was  $272,000  or $0.03 per share,
compared to a net income of $251,000, or $0.03 per share, for the fourth quarter
of 2002. Revenues for the fourth quarter of 2003 were $6.6 million,  compared to
$6.2 million for the fourth quarter of 2002.

Gross margins  increased in dollars for the fourth quarter of 2003 compared with
the same period of 2002 and were favorably impacted by the currency  translation
effects of the weaker U.S. Dollar compared to the Euro.  Operating  expenses for
sales and marketing  increased offset by lower engineering costs and restructure
charge  reversal of $13,000 for the fourth  quarter of 2003 compared a charge of
$135,000 in the same period of 2002.

"In 2003 the  Company  focused  on newer  technologies  such as NAND  flash  and
support for M-Systems DiskOnChip(R) technology," stated Fred Hume, President and
CEO. "As a result, the Company secured initial and repeat orders from its global
customers and gained market share. The new products to be introduced at the APEX
trade  show later this month  will  build on this  momentum  by  satisfying  new
requirements  in these same accounts as well as the unique needs of customers in

First  Quarter  2004  Forward-Looking  Statement:  Management  is  committed  to
long-term  profitable  growth and believes  that the  financial  results for the
current quarter will 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 $6.7 million and no debt at the end of the fourth quarter.

Web-Cast Conference Call: The Company has scheduled a conference call for today,
Wednesday,  February  18, 2004 at 1:30 p.m.  Pacific Time  regarding  its fourth
quarter  results and a business update 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


(in thousands except per share data)

                                                      Fourth Quarter                           Twelve Months Ended
                                                   ---------------------------------    ----------------------------------
                                                   ---------------------------------    ----------------------------------
                                                                            Percent                               Percent
                                                     12/31/03   12/31/02     Change        12/31/03   12/31/02    Change
                                                   ---------------------------------    ----------------------------------
                                                   ---------------------------------    ----------------------------------
Net sales                                              $6,595     $6,209       6.2%         $24,687    $22,838       8.1%
Gross margin                                            3,615      3,504       3.2%          13,679     11,282      21.2%
Gross margin as percent of sales                        54.8%      56.4%      -1.6%           55.4%      49.4%       6.0%
Operating expenses:
  Research & development                                1,105      1,195      -7.5%           4,639      5,331     -13.0%
  Selling, general and administrative                   2,230      1,877      18.8%           7,780      8,254      -5.7%
  Provision for business restructure                      (13)       135                        (39)       632

Operating income (loss)                                   293        297                      1,299     (2,935)
Non-operating income (expense):
  Interest, net                                            31         12                         89         69
  Foreign currency exchange                               (10)      (122)                      (114)      (301)

Income/(loss) from operations before taxes                314        187                      1,274     (3,167)
Income tax expense                                         42        (64)                        33        (61)

Net income/(loss)                                        $272       $251                     $1,241    ($3,106)

Diluted earnings/(loss) per share                       $0.03      $0.03                      $0.15     ($0.40)

Diluted weighted average shares outstanding             8,391      7,783                      8,117      7,704

                                                CONDENSED BALANCE SHEET
                                                     (in thousands)

                                                                           12/31/03         12/31/02
                                                                         -----------    ------------
                                                                         -----------    ------------
Cash and cash equivalents                                                    $4,380          $4,383
Short-term investments                                                        2,354           1,076
Accounts receivable, net                                                      5,054           4,328
Inventories                                                                   4,608           4,476
Other current assets                                                            430             509
Land, building and equipment                                                  1,151           1,508
Other long-term assets                                                           11              87
                                                                         -----------    ------------
Total assets                                                                $17,988         $16,367
                                                                         ===========    ============

Current liabilities                                                          $5,794          $5,647
Deferred gain on sale of property                                             1,105           1,435
Shareholders' equity                                                         11,089           9,285
                                                                         -----------    ------------
Total liabilities and shareholders' equity                                  $17,988         $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

February 18, 2004                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