REDMOND, WA - Data I/O today reported fourth-quarter revenues dropped to $5.8 million and the firm posted a net loss of $584,000 on seasonality and customer postponements.

Last year the company, which supplies programming solutions, showed a net profit of $337,000 on sales of $6.6 million.

Gross margins slipped one point to 53.8%.

The company took a restructuring charge of $60,000 in the fourth quarter.

As of Dec. 31 cash and short-term investments were $6.6 million. The company is debt-free.

For the year, Data I/O reported revenues of $27.3 million, up 10.6% from revenues in 2003. The net loss was $92,000, compared with net income of $1.3 million a year ago.

"The fourth quarter financial results reflect the seasonality of our customers' businesses as some of our customers delayed shipments until the first quarter of 2005," said Fred Hume, president and CEO, in a statement. "Our disappointments in these delays were compounded by the fact that a major shipment to China was also delayed in customs for over two weeks."

Data I/O guided for first quarter revenues of $7 million and gross margins of 54%. "January revenues provide a good start for the first quarter, and we remain confident that 2005 will be a good year," Hume said.