Deswell Announces First Half 2021 Results

About this update from Deswell Industries, Inc.

[{"type":"text","content":"\n- Company Announces First Half Cash Dividend of 0.09 Per Share -\n\n MACAO--(BUSINESS WIRE)--\nDeswell Industries, Inc. (Nasdaq: DSWL) today announced its unaudited financial results for the first six months of fiscal 2021, ended September 30, 2020.\n\nNet sales for the six months ended September 30, 2020 were $27.7 million, a decrease of 26.6% compared to net sales of $37.7 million for the six months ended September 30, 2019. Net sales decreased by 40.4% to $8.7 million in the plastic segment and decreased by 17.8% to $18.9 million in the Company’s electronic segment.\n\nTotal gross margin increased to 20.2% of net sales during the six months ended September 30, 2020, as compared to 17.4% of net sales in the same period last year. Gross profit margin in the plastic segment decreased slightly to 20.4% of net sales for the first half of fiscal 2021, compared to 21.0% of net sales for the corresponding period of last fiscal year. The slight decrease in gross profit and margin in the plastic segment was mainly due to an increase in factory overheads as a percentage of net sales, offsetting decreases in raw materials cost and subcontracting charges. Gross profit margin in the electronic segment increased to 20.1% of net sales for the first half of fiscal 2021, compared to 15.0% of net sales for the corresponding period of last fiscal year. The increase in gross profit and margin in the electronic segment was mainly attributable to decreases in raw materials cost, as a result of cost control measures in the first six months of fiscal 2021. Operating income in the first half of fiscal 2021 was $1.0 million, compared to operating income of $1.2 million for the same period of fiscal 2020.\n\nThe Company reported net income of $1.5 million for the six months ended September 30, 2020, compared to net income of $1.2 million for the six months ended September 30, 2019. This was primarily due to an increase in gross profit margin and non-operating income, as a percentage of sales, for the six months ended September 30, 2020. Deswell reported basic and diluted income per share of $0.10 for the first half of fiscal 2021 (based on 15,915,000 and 15,959,000 weighted average shares outstanding), compared to basic and diluted income per share of $0.08 for the first half of fiscal 2021 (based on 15,912,000 and 15,973,000 weighted average shares o...

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