Deswell Announces Second Half 2020 Results

About this update from Deswell Industries, Inc.

[{"type":"text","content":"\n- Company Announces Second 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 second half of the fiscal year ended March 31, 2020.\n\n\nNet sales for the six months ended March 31, 2020 were $27.7 million, a decrease of 13.0% compared to net sales of $31.8 million for the six months ended March 31, 2019. Net sales decreased by 29.5% to $10.7 million in the plastic segment and increased by 2.0% to $17.0 million in the Company’s electronic segment.\n\n\nTotal gross margin increased to 19.2% during the six months ended March 31, 2020, as compared to 17.2% in the same period last year. Gross profit margin in the plastic segment increased to 23.3% of net sales for the second half of fiscal 2020, as compared to 20.9% of net sales for the corresponding period of last fiscal year. The increase in gross profit margin in the plastic segment was mainly due to decrease in raw materials cost, offsetting the increases in labor cost, as well as in factory overhead, as a percentage of sales. Gross profit margin for the electronic segment for the six months ended March 31, 2020 increased from 13.9% in second half of fiscal 2019 to 16.7% in the second half of fiscal 2020. The increase was mainly due to the reduction in labor cost as a result of the implementation of cost control measures.\n\n\nOperating income for the second half of fiscal 2020 remained approximately the same as the same period of fiscal 2019 at $0.3 million.\n\n\nThe Company reported net loss of $2.6 million for the six months ended March 31, 2020, as compared to net income of $1.5 million for the six months ended March 31, 2019. Non-operating expense for the six months ended March 31, 2020 was $2.6 million, as compared to non-operating income of $1.4 million in the year-ago six months. Non-operating expense during the six months ended March 31, 2020 was primarily comprised of $3,927,000 from a decrease in the fair value of marketable securities, offsetting rental income of $761,000, dividend income of $485,000 from securities investment, and interest income of $126,000. Deswell reported basic and diluted loss per share of $0.16 for the second half of fiscal 2020 (based on 15,915,000 and 15,966,000 weighted average shares outstanding, respectively), as compared to ...

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