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): April 26, 2006

                              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 6 Pages

Item 2.02 Results of Operation and Financial Condition

A copy of a press release made on April 26, 2006 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                                        Deb Stapleton
VP, Finance and Chief Financial Officer            Stapleton Communications Inc.
Data I/O Corporation                               (650) 470-0200
(425) 881-6444                           


Redmond,  Wash.,  April 26,  2006 - Data I/O  Corporation  (NASDAQ:  DAIO),  the
leading  provider of manual and  automated  device  programming  systems,  today
announced financial results for the first quarter ended March 31, 2006.

Revenues for the first  quarter of 2006 were $6.4  million,  compared  with $8.4
million in the fourth quarter of 2005 and down from the $6.7 million recorded in
the first quarter of 2005. Order bookings were $7.1 million,  compared with $7.6
million  in the  fourth  quarter  of 2005 and up from $6.0  million in the first
quarter of 2005. Backlog increased by $0.7 million to $1.9 million at the end of
the first quarter. Gross margins in the first quarter of 2006 were 53.2 percent,
compared with 52.5 percent in the prior quarter.

In accordance with U.S.  generally  accepted  accounting  principles (GAAP), net
loss in the first  quarter of 2006 was  $512,000 or ($0.06) per share,  compared
with net income of $363,000,  or $0.04 per share,  in the fourth quarter of 2005
and a net income of $39,000 in the first quarter of 2005. The net loss per share
in the first  quarter of 2006  includes  $0.01 that  resulted from the impact of
expensing  options under FAS 123(R).  The company remains debt-free and has cash
and investments of $4.1 million.

"We were  disappointed  by the revenue  shortfall in the first  quarter of 2006,
which was due to delays in closing customer  prospective orders,  resulting in a
loss for the quarter," said Fred Hume, president and CEO. "The good news in this
circumstance  is  that  we did not  lose  any of  these  prospective  orders  to
competition and we were pleased to see our orders increase to the highest levels
reported for a first quarter since the industry  downturn of 2000/2001.  We also
saw the momentum that built in 2005 continue with  significant  improvements  in
our major customer  segments,  except for the wireless industry where the normal
seasonal pattern of a weak first quarter persists.

"We are excited to announce that new product development  activity remained at a
high level with the  completion  of what we consider to be the most  significant
product introduction from Data I/O in many years. This new automated programming
solution will be announced in press releases on May 3rd," said Hume.

Conference Call Information
A conference  call  discussing  the first  quarter 2006  financial  results will
follow this release today at 2:00 p.m.  Pacific  time/5:00 p.m. Eastern time. To
listen to the conference  call,  please dial (773) 681-5826,  passcode:  DAIO. A
taped replay will be made available  approximately one hour after the conclusion
of the call and will remain available for one week. To access the replay, please
dial (203)  369-3090.  The conference call will also be  simultaneously  webcast
over  the  Internet;  visit  the  Investor  Relations  section  of the  Data I/O
Corporation website at  to access the call from the site.
This  webcast  will be  recorded  and  available  for  replay  on the  Data  I/O
Corporation  website  approximately  two  hours  after  the  conclusion  of  the
conference call.

About Data I/O Corporation
Celebrating  more  than  30  years  of  innovative   leadership  in  the  device
programming industry,  Data I/O Corporation (NASDAQ:  DAIO), provides manual and
automated device programming systems that specifically  address the requirements
of engineering and manufacturing  customers.  FlashCORE(TM),  Sprint and UniSite
families  provide a wide range of device  support and  versatility  to address a
user's many different  programming  needs. Data I/O Corporation has headquarters
in  Redmond,  WA,  with  sales  and  services  offices  worldwide.  For  further
information, visit the company's website at

Forward Looking Statement
Statements in this news release  concerning  future revenues,  margins,  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.  The
accuracy and  completeness of  forward-looking  statements  should not be unduly
relied  upon.  Data I/O is under no duty to update any of these  forward-looking

                       - Summary Financial Data Attached -

                              DATA I/O CORPORATION
                      (in thousands except per share data)

                                                     First Quarter
                                            3/31/2006     3/31/2005      Change
                                         ------------ -------------- -----------
Net sales                                      $6,413       $6,737       -4.8%
Gross margin                                    3,410        4,014      -15.0%
Gross margin as percent of sales                53.2%        59.6%       -6.4%
Operating expenses:
  Research & development                        1,306        1,337       -2.3%
  Selling, general and administrative           2,639        2,631        0.3%
                                           --------------- --------------
Operating income (loss)                          (535)          46
Non-operating income (expense):
  Interest, net                                    43           20
  Gain on sale                                      6            0
  Foreign currency exchange                         3          (21)

                                            --------------- --------------
Income (loss) from operations before taxes       (483)          45
Income tax expense (benefit)                       29            6

                                            --------------- --------------
Net income (loss)                               ($512)         $39
                                            =============== ==============

Total diluted earnings (loss) per share        ($0.06)       $0.00

Diluted weighted average shares
outstanding                                     8,386       8,550

                             CONDENSED BALANCE SHEET
                                 (in thousands)

                                                 3/31/2006          12/31/2005
                                                ------------        ------------
Cash and cash equivalents                           $3,282              $4,362
Short-term investments                                 800                 800
Accounts receivable, net                             6,531               6,828
Inventories                                          3,993               3,529
Other current assets                                   376                 329
Land, building and equipment                         2,280               2,274
Other long-term assets                                  84                  15
                                                ------------        ------------
   Total assets                                    $17,346             $18,137
                                                ============        ============

Current liabilities                                 $5,237              $5,854
Shareholders' equity                                12,109              12,283
                                                ------------        ------------
   Total liabilities and shareholders'equity       $17,346             $18,137
                                                ============        ============


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

April 28, 2006                      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