September 30,
|
March 31,
|
|||||||
2023
|
2023
|
|||||||
ASSETS
|
(Unaudited)
|
(Audited)
|
||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
17,381
|
$
|
22,160
|
||||
Fixed deposits maturing over three months
|
6,424
|
3,053
|
||||||
Time deposits maturing over twelve months - current portion
|
279
|
1,047
|
||||||
Marketable securities (note 2)
|
21,394
|
20,722
|
||||||
Held-to-maturity Investment
|
5,092
|
-
|
||||||
Accounts receivable, net
|
16,799
|
15,704
|
||||||
Inventories (note 3)
|
14,774
|
17,325
|
||||||
Prepaid expenses and other current assets
|
1,179
|
1,149
|
||||||
Total current assets
|
83,322
|
81,160
|
||||||
Property, plant and equipment - net
|
25,307
|
26,051
|
||||||
Deferred income tax assets
|
247
|
262
|
||||||
Time deposits maturing over twelve months
|
2,740
|
2,906
|
||||||
Total assets
|
$
|
111,616
|
$
|
110,379
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Current liabilities
|
||||||||
Accounts payable
|
$
|
7,625
|
$
|
6,949
|
||||
Accrued payroll and employee benefits
|
7,005
|
7,943
|
||||||
Customer deposits
|
2,054
|
2,216
|
||||||
Other accrued liabilities
|
1,770
|
1,989
|
||||||
Income taxes payable
|
1,103
|
1,149
|
||||||
Total current liabilities
|
19,557
|
20,246
|
||||||
Deferred income tax liabilities
|
447
|
484
|
||||||
Total liabilities
|
20,004
|
20,730
|
||||||
Shareholders' equity
|
||||||||
Common shares nil par value; authorized 30,000,000 shares; 17,081,810 shares issued;
|
||||||||
15,935,239 shares outstanding as of March 31, 2023 and September 30, 2023
|
53,202
|
53,202
|
||||||
Treasury stock at cost; 1,146,571 shares as of March 31, 2023 and September 30, 2023
|
(2,821
|
)
|
(2,821
|
)
|
||||
Additional paid-in capital
|
7,973
|
7,973
|
||||||
Accumulated other comprehensive income
|
5,316
|
5,316
|
||||||
Retained earnings
|
27,942
|
25,979
|
||||||
Total shareholders' equity
|
91,612
|
89,649
|
||||||
Total liabilities and shareholders' equity
|
$
|
111,616
|
$
|
110,379
|
||||
Six months ended
|
||||||||
September 30,
|
||||||||
2023
|
2022
|
|||||||
Net sales
|
$
|
37,730
|
$
|
44,438
|
||||
Cost of sales
|
30,368
|
37,324
|
||||||
Gross profit
|
7,362
|
7,114
|
||||||
Selling, general and administrative expenses
|
5,260
|
5,751
|
||||||
Other income, net
|
200
|
677
|
||||||
Operating income
|
2,302
|
2,040
|
||||||
Non-operating income (expense), net
|
1,424
|
(2,310
|
)
|
|||||
Income (loss) before income taxes
|
3,726
|
(270
|
)
|
|||||
Income taxes
|
169
|
290
|
||||||
Net income (loss) attributable to Deswell Industries, Inc.
|
$
|
3,557
|
$
|
(560
|
)
|
|||
Other comprehensive income
|
$
|
-
|
$
|
-
|
||||
Comprehensive income (loss)attributable to Deswell Industries, Inc.
|
$
|
3,557
|
$
|
(560
|
)
|
|||
Net income (loss) per share attributable to
|
||||||||
Deswell Industries, Inc. (note 4)
|
||||||||
Basic:
|
||||||||
Net income (loss) per share
|
$
|
0.22
|
$
|
(0.035
|
)
|
|||
Weighted average common shares outstanding
|
||||||||
shares (in thousands)
|
15,935
|
15,935
|
||||||
Diluted:
|
||||||||
Net income (loss) per share
|
$
|
0.22
|
$
|
(0.035
|
)
|
|||
Weighted average number of shares
|
||||||||
outstanding (in thousands)
|
15,973
|
15,935
|
Six months ended
|
Six months ended
|
|||||||
September 30,
|
September 30,
|
|||||||
2023
|
2022
|
|||||||
Cash flows from operating activities:
|
||||||||
Net (loss) income
|
$
|
3,557
|
$
|
(560
|
)
|
|||
Adjustments to reconcile net income to net cash
|
||||||||
provided by operating activities:
|
||||||||
Depreciation and amortization
|
771
|
858
|
||||||
Reversal of provision for doubtful accounts
|
-
|
(46
|
)
|
|||||
Reversal of obsolete allowance of inventories, net
|
-
|
(125
|
)
|
|||||
Gain on disposal of property, plant and equipment
|
(11
|
)
|
(22
|
)
|
||||
Unrealized holding (gain) loss on marketable securities
|
(68
|
)
|
4,354
|
|||||
Realized gain on disposal of marketable securities
|
-
|
(120
|
)
|
|||||
Deferred tax credit
|
(22
|
)
|
(105
|
)
|
||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(1,095
|
)
|
(3,836
|
)
|
||||
Inventories
|
2,551
|
3,248
|
||||||
Prepaid expenses and other current assets
|
(30
|
)
|
(106
|
)
|
||||
Accounts payable
|
676
|
295
|
||||||
Accrued payroll and employee benefits
|
(938
|
)
|
165
|
|||||
Customer deposits
|
(162
|
)
|
303
|
|||||
Other accrued liabilities
|
(219
|
)
|
(390
|
)
|
||||
Income taxes payable
|
(46
|
)
|
60
|
|||||
Net cash provided by operating activities
|
4,964
|
3,973
|
||||||
Cash flows from investing activities
|
||||||||
Purchase of property, plant and equipment
|
(141
|
)
|
(318
|
)
|
||||
Proceeds from disposal of property, plant and equipment
|
126
|
52
|
||||||
Purchase of marketable securities
|
(604
|
)
|
(1,123
|
)
|
||||
Proceeds from disposal of marketable securities
|
-
|
1,927
|
||||||
(Increase in) release of fixed deposits maturing over three months
|
(3,372
|
)
|
388
|
|||||
Release of fixed deposits maturing over twelve months - current
|
768
|
-
|
||||||
Release of (increase in) fixed deposits maturing over twelve months
|
166
|
(1,193
|
)
|
|||||
Held-to-maturity Investment
|
(5,092
|
)
|
-
|
|||||
Net cash used in investing activities
|
(8,149
|
)
|
(267
|
)
|
||||
Cash flows from financing activities
|
||||||||
Dividends paid
|
(1,594
|
)
|
(1,594
|
)
|
||||
Net cash used in financing activities
|
(1,594
|
)
|
(1,594
|
)
|
||||
Cash effect of exchange rate changes
|
||||||||
Net increase (decrease) in cash and cash equivalents
|
(4,779
|
)
|
2,112
|
|||||
Cash and cash equivalents, at beginning of period
|
22,160
|
13,465
|
||||||
Cash and cash equivalents, at end of period
|
17,381
|
15,577
|
||||||
Supplementary disclosures of cashflow information:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest
|
-
|
-
|
||||||
Income taxes
|
267
|
231
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(U.S. dollars in thousands except per share data)
March 31, 2023
|
||||||||||||
Cost
|
Gross
Unrealized
Loss
|
Fair value
|
||||||||||
Marketable securities
|
||||||||||||
Equity securities
|
$
|
24,292
|
$
|
(3,570
|
)
|
$
|
20,722
|
|||||
September 30, 2023
|
||||||||||||
Cost
|
Gross
Unrealized
Loss
|
Fair value
|
||||||||||
Marketable securities
|
||||||||||||
Equity securities
|
$
|
24,896
|
$
|
(3,502
|
)
|
$
|
21,394
|
September 30,
|
March 31,
|
|||||||
2023
|
2023
|
|||||||
Inventories by major categories:
|
|
|||||||
Raw materials
|
$
|
9,367
|
$
|
12,987
|
||||
Work in progress
|
3,701
|
2,723
|
||||||
Finished goods
|
1,706
|
1,615
|
||||||
$
|
14,774
|
$
|
17,325
|
CONDITION AND RESULTS OF OPERATIONS
General