- Company Announces First Half Cash Dividend
of 0.10 Per Share -
Deswell Industries, Inc. (Nasdaq: DSWL) today announced its
unaudited financial results for the first six months of fiscal
2022, ended September 30, 2021.
Net sales for the six months ended September 30, 2021 were $39.8
million, an increase of 43.7% compared to net sales of $27.7
million for the six months ended September 30, 2020. Net sales
increased by 13.5% to $9.9 million in the plastic segment and
increased by 57.6% to $29.8 million in the Company’s electronic
segment.
Total gross margin decreased to 16.1% of net sales during the
six months ended September 30, 2021, as compared to 20.2% of net
sales in the same period last year. Gross profit margin in the
plastic segment decreased to 10.7% of net sales for the first half
of fiscal 2022, compared to 20.4% of net sales for the
corresponding period of last fiscal year. The decrease in gross
profit and margin in the plastic segment was mainly due to
increases in raw materials cost, as well as in basic pay rate of
labor costs. Gross profit margin in the electronic segment
decreased to 17.9% of net sales for the first half of fiscal 2022,
compared to 20.1% of net sales for the corresponding period of last
fiscal year. The decrease in gross margin in the electronic segment
was mainly attributable to increases in raw materials cost, as well
as in headcount and pay rate of labor cost for the first six months
of fiscal 2022. Operating income in the first half of fiscal 2022
was $1.2 million, compared to operating income of $1.0 million for
the same period of fiscal 2021.
The Company reported net income of $4.3 million for the six
months ended September 30, 2021, compared to net income of $1.5
million for the six months ended September 30, 2020. This was
primarily due to an increase in non-operating income, as a
percentage of sales, for the six months ended September 30, 2021.
Deswell reported basic and diluted income per share of $0.27 for
the first half of fiscal 2022 (based on 15,923,000 and 16,041,000
weighted average shares outstanding), as compared to basic and
diluted income per share of $0.10 (based on 15,915,000 and
15,959,000 weighted average shares outstanding) respectively, for
the six months ended September 30, 2020.
The Company's financial position remained strong, with $17.4
million in cash and cash equivalents and working capital totaled
$61.8 million as of September 30, 2021. Furthermore, the Company
has no long-term or short-term borrowings as of September 30,
2021.
Mr. Edward So, Chief Executive Officer, commented, “We’re
pleased to have delivered solid revenue growth in the first half of
fiscal 2022, driven by sales growth in both our plastics and our
electronics segments. Demand for home audio and entertainment
equipment remains strong and as more economies start to fully
reopen, with the return of live performances and concerts, we’re
also seeing an uptick in sales of professional audio equipment.
“While no business is immune to ongoing worldwide supply chain
challenges, we have been effectively managing through the global
component shortage thanks largely to our longstanding relationships
and close collaborations with our suppliers as well as with our
customers. We recognize that this is a fluid situation and we will
remain vigilant as we, and the rest of our industry navigate supply
challenges.”
Mr. So concluded, “Our balance sheet is solid and continues to
provide us with the financial flexibility to focus on our long-term
performance. With no debt and a strong cash position, we are well
positioned to grow our existing customer relationships and to add
new customers. Additionally, we have invested $822 thousand in our
manufacturing equipment, including SMT machines and injection
molding machines, demonstrating our commitment to executing our
long-term growth strategy and to enhancing our position as a
reliable manufacturing partner for both existing and new customers.
We’re encouraged by the opportunities we’re seeing in the
marketplace and focused on operational execution with the goal of
driving continued profitability and shareholder value as we move
through fiscal year 2022.”
First Half Dividend
The Company also announces that its board of directors today
declared a cash dividend of $0.10 per share for the first half of
the fiscal year ended September 30, 2021. The dividend will be
payable on December 22, 2021 to shareholders of record as of
December 6, 2021.
About Deswell
Deswell manufactures injection-molded plastic parts and
components, electronic products and subassemblies, and metallic
molds and accessory parts for original equipment manufacturers
(“OEMs”) and contract manufacturers at its factories in the
People’s Republic of China. The Company produces a wide variety of
plastic parts and components used in the manufacture of consumer
and industrial products; printed circuit board assemblies using
surface mount (“SMT”) and finished products such as telephones,
telephone answering machines, sophisticated studio-quality audio
equipment and computer peripherals.
To learn more about Deswell Industries, Inc., please visit the
Company’s website at www.deswell.com.
Forward-Looking Statements Statements in this press
release that are "forward-looking statements" are based on current
expectations and assumptions that are subject to risks and
uncertainties. For example, our statements regarding our expected
growth in sales from the electronic division in the coming year and
our efforts to reduce overhead costs in our plastic division are
forward-looking statements. Actual results could differ materially
because of the following factors, among others, which may cause
revenues and income to fall short of anticipated levels or our
overhead expenses to increase: our dependence on a few major
customers; vigorous competition forcing product price reductions or
discounts; the timing and amount of significant orders from our
relatively few significant customers; continuing increases in resin
prices that cannot be passed on to customers; unexpected production
delays; obsolete inventory or product returns; losses resulting
from fraudulent activity of our customers or employees; labor
shortages that increase labor and costs; changes in the mix of
product products we manufacture and sell; adverse currency
fluctuations in the renminbi and Hong Kong dollar when translated
to US dollars; potential new accounting pronouncements; and the
effects of travel restrictions and quarantines associated with
major health problems, such as the Severe Acute Respiratory
Syndrome, on general economic activity.
For further information regarding risks and uncertainties
associated with the Company’s business, please refer to the “Risk
Factors” section of Company’s Annual Report on Form 20-F, copies of
which may be obtained from the Website maintained by the Securities
and Exchange Commission at http://www.sec.gov.
All information in this release is made as of the date of this
press release. Deswell undertakes no duty to update any
forward-looking statement to conform the statement to actual
results or changes in Deswell’s expectations.
DESWELL INDUSTRIES,
INC.
CONSOLIDATED BALANCE
SHEET
(U.S. dollars in
thousands)
September 30,
March 31,
2021
2021
ASSETS
(Unaudited)
(Audited)
Current assets :
Cash and cash equivalents
$
17,379
$
20,223
Fixed deposits maturing over three months
3,070
2,700
Time deposits maturing over twelve months - current portion
1,543
-
Marketable securities (note 3)
24,316
22,373
Accounts receivable, net
17,502
14,708
Inventories (note 2)
20,992
16,193
Prepaid expenses and other current assets
3,420
2,489
Total current assets
88,222
78,686
Property, plant and equipment - net
27,246
27,323
Time deposits maturing over twelve
months
308
1,851
Total assets
$
115,776
$
107,860
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable
$
12,157
$
9,522
Accrued payroll and employee benefits
7,630
7,107
Customer deposits
3,156
1,683
Other accrued liabilities
2,409
2,016
Income taxes payable
1,063
886
Total current liabilities
26,415
21,214
Deferred income tax liabilities
923
957
Total liabilities
27,338
22,171
Shareholders' equity
Common shares nil par value; authorized 30,000,000 shares;
17,061,810, and 17,081,810 shares issued as of March 31, 2021 and
September 30, 2021; 15,915,239 and 15,935,239 shares outstanding as
of March 31, 2021 and September 30, 2021
53,202
53,143
Treasury stock at cost; 1,146,571 and 1,146,571 shares as of March
31, 2021 and September 30, 2021
(2,821)
(2,821)
Additional paid-in capital
7,973
7,989
Accumulated other comprehensive income
5,316
5,316
Retained earnings
24,768
22,062
Total shareholders' equity
88,438
85,689
Total liabilities and shareholders' equity
$
115,776
$
107,860
DESWELL INDUSTRIES,
INC.
CONSOLIDATED STATEMENT OF
OPERATIONS & COMPREHENSIVE INCOME
(UNAUDITED)
(U.S. dollars in thousands,
except per share data)
Six months ended
September 30,
2021
2020
Net sales
$
39,782
$
27,690
Cost of sales
33,362
22,095
Gross profit
6,420
5,595
Selling, general and administrative
expenses
5,348
4,720
Other income, net
111
84
Operating income
1,183
959
Non-operating income, net
3,288
804
Income before income taxes
4,471
1,763
Income taxes
173
231
Net income attributable to Deswell
Industries, Inc.
$
4,298
$
1,532
Other comprehensive income
$
-
$
-
Comprehensive income attributable to
Deswell Industries, Inc.
$
4,298
$
1,532
Net income per share attributable to
Deswell Industries, Inc. (note 4)
Basic:
Net income per share
$
0.27
$
0.10
Weighted average common shares outstanding shares (in thousands)
15,923
15,915
Diluted:
Net income per share
$
0.27
$
0.10
Weighted average number of shares outstanding (in thousands)
16,041
15,959
DESWELL INDUSTRIES,
INC.
CONSOLIDATED STATEMENT OF CASH
FLOWS
(UNAUDITED)
(U.S. dollars in
thousands)
( U.S. dollars in thousands )
Six months ended
Six months ended
September 30,
September 30,
2021
2020
Cash flows from operating activities :
Net income
$
4,298
$
1,532
Adjustments to reconcile net income to net
cash provided by operating activities :
Depreciation and amortization
883
895
(Reversal of) provision for doubtful
accounts
(163)
432
(Reversal of) additional charges for
obsolescence allowance of inventories, net
(293)
132
Loss on disposal of property, plant and
equipment
-
10
Unrealized holding (gain) loss on
marketable securities
(845)
527
Realized gain on disposal of marketable
securities
(653)
(54)
Scrip dividend received
-
(448)
Exchange loss from marketable
securities
117
-
Deferred tax (credit) charge
(34)
81
Changes in operating assets and
liabilities:
Accounts receivable
(2,631)
(2,148)
Inventories
(4,506)
(1,718)
Prepaid expenses and other current
assets
(931)
144
Accounts payable
2,635
3,603
Accrued payroll and employee benefits
523
338
Customer deposits
1,473
133
Other accrued liabilities
393
106
Income taxes payable
177
95
Net cash provided by operating
activities
443
3,660
Cash flows from investing activities
Purchase of property, plant and
equipment
(822)
(85)
Proceeds from disposal of property, plant
and equipment,
16
-
Purchase of marketable securities
(7,301)
(3,026)
Proceeds from disposal of marketable
securities
6,739
541
Increase in fixed deposits maturing over
three months
(370)
(2,706)
Increase in fixed deposits maturing over
twelve months
-
(27)
Net cash used in investing activities
(1,738)
(5,303)
Cash flows from financing activities
Dividends paid
(1,592)
(1,432)
Exercise of stock options
43
-
Net cash used in financing activities
(1,549)
(1,432)
Cash effect of exchange rate changes
Net decrease in cash and cash
equivalents
(2,844)
(3,075)
Cash and cash equivalents, at beginning of
period
20,223
22,514
Cash and cash equivalents, at end of
period
17,379
19,439
Supplementary disclosures of cashflow
information :
Cash paid during the period for :
Interest
-
-
Income taxes
89
78
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211122005304/en/
Investor Relations: John Nesbett/Jennifer Belodeau IMS
Investor Relations 203.972.9200
Deswell Industries (NASDAQ:DSWL)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Deswell Industries (NASDAQ:DSWL)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024