Deswell Industries Reports H2 2024 Results, Declares Dividend

TL;DR

DSWL sales down 4.4% to $31.6M H2, but paying $0.10 dividend.

AI Summary

Deswell Industries, Inc. (Nasdaq: DSWL) reported its unaudited financial results for the second half of the fiscal year ending March 31, 2024. Net sales for this period were $31.6 million, a 4.4% decrease compared to the same period last year. The company also announced a cash dividend of $0.10 per share for the second half of the fiscal year.

Why It Matters

The company's financial performance shows a slight decline in net sales, while the declaration of a cash dividend indicates a commitment to returning value to shareholders.

Risk Assessment

Risk Level: medium — The filing indicates a decrease in net sales, which could signal potential challenges in the company's market position or operational efficiency.

Key Numbers

• $31.6M — Net Sales (H2 FY24) (Represents a 4.4% decrease compared to the prior year's second half.)
• $0.10 — Cash Dividend Per Share (Declared for the second half of the fiscal year, indicating shareholder returns.)

Key Players & Entities

• Deswell Industries, Inc. (company) — Registrant
• DSWL (company) — Ticker Symbol
• March 31, 2024 (date) — Fiscal Year End
• $31.6 million (dollar_amount) — Net sales for the second half of the fiscal year
• 0.10 (dollar_amount) — Cash dividend per share

FAQ

Key Financial Figures

• $31.6 m — he six months ended March 31, 2024 were $31.6 million, a decrease of 4.4% compared to n
• $33.1 million — crease of 4.4% compared to net sales of $33.1 million for the six months ended March 31, 2023
• $6.1 million — , 2023. Net sales decreased by 18.4% to $6.1 million in the plastic segment and by less than
• $25.5 million — segment and by less than one percent to $25.5 million in the Company’s electronic segme
• $0.8 million — cond half of fiscal 2024 increased from $0.8 million in the second half of fiscal 2023 to $1
• $1.5 million — on in the second half of fiscal 2023 to $1.5 million in the second half of fiscal 2024. The
• $4.2 million — 24. The Company reported net income of $4.2 million for the six months ended March 31, 2024
• $2.6 million — 31, 2024, as compared to net income of $2.6 million for the six months ended March 31, 2023
• $2.6 m — the six months ended March 31, 2024 was $2.6 million, as compared to non-operating inc
• $1.7 million — as compared to non-operating income of $1.7 million in the six months ended March 31, 2023.
• $884,000 — rch 31, 2024 was primarily comprised of $884,000 from unrealized gain in marketable secu
• $260,000 — realized gain in marketable securities, $260,000 from rental income, $695,000 on dividen
• $695,000 — ecurities, $260,000 from rental income, $695,000 on dividend income from securities inve
• $351,000 — income from securities investments, and $351,000 from other income, as compared to an un
• $381,000 — e, as compared to an unrealized gain of $381,000 on marketable securities, rental income

Filing Documents

• f6k_062024.htm (6-K) — 168KB
• ec_sig.jpg (GRAPHIC) — 4KB
• 0001171843-24-003537.txt ( ) — 175KB

Forward-Looking Statements

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&rsqu

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (U.S. dollars in thousands except per share data) 1. Management’s Statement In the opinion of Management, the accompanying unaudited financial of Deswell Industries, Inc. (the “Company”) at March 31, 2024 and March 31, 2023; the results of operations for the six months and year ended March 31, 2024 and March 31, 2023; and the cash flows for the year ended March 31, 2024 and 2023. The notes to the Consolidated Financial Statements contained in the Form 20-F Annual Report filed on July 28, 2023 under the Securities Exchange Act of 1934 should be read in conjunction with these Consolidated Financial Statements. 2. Marketable securities and other securities investments Marketable securities and other securities investments include debt and equity securities of which the aggregate fair value, unrealized gain (loss) and cost are as follows: March 31, 2024 Cost Gross Unrealized (Loss) Fair value Marketable securities Equity securities $ 25,644 $ (2,618 ) $ 23,026 March 31, 2023 Cost Gross Unrealized (Loss) Fair value Marketable securities Equity securities $ 24,292 $ (3,570 ) $ 20,722 Marketable Securities The Company acquired equity securities listed on the Hong Kong Stock Exchange and Australian Securities Exchange. These securities are recorded at fair value based on quoted market prices. Unrealized income from these marketable securities for the six months ended March 31, 2024 is included in the non-operating income of the consolidated statement of operations and comprehensive income. During the second half of fiscal 2024, there was no realized gain from the sale of marketable securities. 3. Inventories March 31, March 31, 2024 2023 Inventories by major categories: Raw materials $ 8,747 $ 12,987 Work in

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