Deswell Announces Second Half 2021 Results

About this update from Deswell Industries, Inc.

[{"type":"text","content":"\n- Company Announces Second Half Cash Dividend of 0.10 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, 2021.\n\nNet sales for the six months ended March 31, 2021 were $37.2 million, an increase of 34.5% compared to net sales of $27.7 million for the six months ended March 31, 2020. Net sales increased by 4.1% to $11.1 million in the plastic segment and by 53.6% to $26.1 million in the Company’s electronic segment.\n\nTotal gross margin increased to 20.4% during the six months ended March 31, 2021, as compared to 19.2% in the same period last year. Gross profit margin in the plastic segment increased to 26.0% of net sales for the second half of fiscal 2021, as compared to 23.3% of net sales for the corresponding period of the last fiscal year. The increase in gross profit margin in the plastic segment was mainly due to a decrease in raw materials cost, offsetting the increase in factory overhead, as a percentage of sales. Gross profit margin for the electronic segment for the six months ended March 31, 2021 increased from 16.7% in the second half of fiscal 2020 to 17.9% in the second half of fiscal 2021. The increase was mainly due to increases in sales volume, increased percentage of sales of ODM products, and the implementation of cost control measures.\n\nOperating income for the second half of fiscal 2021 increased from $0.3 million in the second half of fiscal 2020 to $2.3 million in the second half of fiscal 2021.\n\nThe Company reported net income of $6.7 million for the six months ended March 31, 2021, as compared to net loss of $2.6 million for the six months ended March 31, 2020. Non-operating income for the six months ended March 31, 2021 was $4.6 million, as compared to a non-operating expense of $2.6 million in the six months ended March 31, 2020. Non-operating income during the six months ended March 31, 2021 was primarily comprised of an increase of $2,538,000 in the fair value of marketable securities held, $1,214,000 from rental income, $482,000 of dividend income from securities investments, and a $279,000 realized gain from the sale of marketable securities, as compared to a decrease of $3,927 in the fair value of marketable securities held, $761,000 from rental income, $485,...

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