Deswell Announces Second Half 2022 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, 2022.\n\nNet sales for the six months ended March 31, 2022 were $45.7 million, an increase of 22.9% compared to net sales of $37.2 million for the six months ended March 31, 2021. Net sales increased by 16.3% to $12.9 million in the plastic segment and by 25.7% to $32.8 million in the Company’s electronic segment.\n\nTotal gross margin decreased to 16.5% during the six months ended March 31, 2022, as compared to 20.4% in the same period last year. Gross profit margin in the plastic segment decreased to 19.2% of net sales for the second half of fiscal 2022, as compared to 26.0% of net sales for the corresponding period of the last fiscal year. For the electronic segment, gross profit margin decreased from 17.9% in the second half of fiscal 2021 to 15.4% in the second half of fiscal 2022. The decrease in the gross profit margin in both the plastic and electronic segments is mainly attributable to increase in raw materials costs, such as plastic resins and semiconductor chips, respectively, as a result of the continuing shortage in supply and pricing volatility, as well as surging demand in the automotive industry for these primary materials, which resulted in the increased cost of semi-conductor chips.\n\nOperating income for the second half of fiscal 2022 decreased from $2.3 million in the second half of fiscal 2021 to $1.7 million in the second half of fiscal 2022.\n\nThe Company reported net income of $4.1 million for the six months ended March 31, 2022, as compared to net income of $6.7 million for the six months ended March 31, 2021. Non-operating income for the six months ended March 31, 2022 was $2.0 million, as compared to a non-operating income of $4.6 million in the six months ended March 31, 2021. Non-operating income during the six months ended March 31, 2022 was primarily comprised of unrealized gain in marketable securities of $27,000, $1,027,000 from rental income, $454,000 of dividend income from securities investments, and realized gain of $419,000 from the sale of marketable securities, as compared to an unrealized gain in marketable securities of $2,538,000, rental income of ...

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