Item 9.01 Financial Statements and Exhibits

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Item 2.02 Results of Operation and Financial Condition

A press release announcing preliminary results for the fourth quarter and year ended December 31, 2012 was made on January 17, 2012 and a copy of the release is being furnished as Exhibit 99.1 in this current report.

It disclosed that the Company expects to report fourth quarter 2012 revenues of $3.7 million and a net loss of approximately $3.4 million, which includes an impairment charge of $2.36 million related to Azido software technology intangible assets. For the year ended December 31, 2012 the Company expects to report revenues of $17.1 million and a net loss of approximately $6.4 million.

During the fourth quarter, the decline in our stock market capitalization relative to our book value was an indicator of impairment. Projected cash flow changes, decreasing or eliminating our expected future cash flows related to Azido technology's use or disposition, resulted in a write down to a carrying value of $35,000 at year end. The impairment charge is a non-cash item.

The Company had cash of approximately $10.5 million and no debt at the end of the fourth quarter. The Company expects to announce actual results for the fourth quarter and the year ended December 31, 2012, on February 28, 2013.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No. Description

99.1 Press Release: DATA I/O ANNOUNCES EXPECTED FINANCIAL RESULTS