Deswell Announces Second Half 2024 Results
- Company Announces Second Half Cash Dividend of 0.10 Per Share -
Net sales for the six months ended
Total gross margin increased to 20.7% during the six months ended
Operating income for the second half of fiscal 2024 increased from
The Company reported net income of
Net sales for the year ended
The Company's financial position remained strong, with
Mr.
“Our balance sheet is strong, reflecting a solid cash position and no debt providing us with the resources to focus on increasing our customer base and recognition in the industry as a dependable and effective partner for outsourced manufacturing operations.”
Second Half Dividend
The Company also announced that its board of directors today declared a cash dividend of
Dividends to be declared in the future will depend upon the Company’s future growth and earnings, of which there can be no assurance, and the Company’s cash flow needs for future development.
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
To learn more about
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
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
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.
CONSOLIDATED BALANCE SHEET
( |
|||||||
|
|
||||||
2024 |
2023 |
||||||
ASSETS |
(Unaudited) |
(Audited) |
|||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
15,750 |
$ |
22,160 |
|||
Time deposits with original maturing over three months |
|
13,979 |
|
3,053 |
|||
Time deposits with original maturing over twelve months - current |
|
- |
|
1,047 |
|||
Marketable securities (note 2) |
|
23,026 |
|
20,722 |
|||
|
|
5,157 |
|
- |
|||
Accounts receivable, net |
|
11,986 |
|
15,704 |
|||
Inventories (note 3) |
|
12,129 |
|
17,325 |
|||
Prepaid expenses and other current assets |
|
1,228 |
|
1,149 |
|||
Total current assets |
|
83,255 |
|
81,160 |
|||
Property, plant and equipment, net |
|
24,603 |
|
26,051 |
|||
Deferred income tax assets |
|
419 |
|
262 |
|||
Time deposits with original maturing over twelve months |
|
2,799 |
|
2,906 |
|||
Total assets |
$ |
111,076 |
$ |
110,379 |
|||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||
Current liabilities |
|||||||
Accounts payable |
$ |
5,210 |
$ |
6,949 |
|||
Accrued payroll and employee benefits |
|
7,159 |
|
7,943 |
|||
Customer deposits |
|
1,712 |
|
2,216 |
|||
Other accrued liabilities |
|
1,236 |
|
1,989 |
|||
Income taxes payable |
|
1,113 |
|
1,149 |
|||
Total current liabilities |
|
16,430 |
|
20,246 |
|||
Deferred income tax liabilities |
|
476 |
|
484 |
|||
Total liabilities |
|
16,906 |
|
20,730 |
|||
Shareholders' equity |
|||||||
Common shares nil par value - authorized 30,000,000 shares, |
|||||||
17,081,810 shares issued as of |
|||||||
15,935,239 shares outstanding as of |
|
53,202 |
|
53,202 |
|||
|
|
(2,821) |
|
(2,821) |
|||
Additional paid-in capital |
|
7,973 |
|
7,973 |
|||
Accumulated other comprehensive income |
|
5,316 |
|
5,316 |
|||
Retained earnings |
|
30,500 |
|
25,979 |
|||
Total shareholders' equity |
|
94,170 |
|
89,649 |
|||
Total liabilities and shareholders' equity |
$ |
111,076 |
$ |
110,379 |
CONSOLIDATED STATEMENT OF OPERATIONS & COMPREHENSIVE INCOME (UNAUDITED)
( |
||||||||||||||
Six months ended |
Year ended |
|||||||||||||
|
|
|||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||
Net sales |
$ |
31,638 |
$ |
33,105 |
$ |
69,368 |
$ |
77,543 |
||||||
Cost of sales |
|
25,097 |
|
27,380 |
|
55,465 |
|
64,704 |
||||||
Gross profit |
|
6,541 |
|
5,725 |
|
13,903 |
|
12,839 |
||||||
Selling, general and administrative expenses |
|
5,241 |
|
5,215 |
|
10,501 |
|
10,966 |
||||||
Other income, net |
|
183 |
|
337 |
|
383 |
|
1,014 |
||||||
Operating income |
|
1,483 |
|
847 |
|
3,785 |
|
2,887 |
||||||
Non-operating (expenses) income, net |
|
2,610 |
|
1,737 |
|
4,034 |
|
(573) |
||||||
Income, before income taxes |
|
4,093 |
|
2,584 |
|
7,819 |
|
2,314 |
||||||
Income taxes expense (benefit) |
|
(59) |
|
(35) |
|
110 |
|
255 |
||||||
Net income attributable to |
$ |
4,152 |
$ |
2,619 |
$ |
7,709 |
$ |
2,059 |
||||||
Other comprehensive income |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
||||||
Total comprehensive income attributable to |
$ |
4,152 |
$ |
2,619 |
$ |
7,709 |
$ |
2,059 |
||||||
Net income per share attributable to |
||||||||||||||
|
||||||||||||||
Basic: |
||||||||||||||
Net income per share |
$ |
0.26 |
$ |
0.16 |
$ |
0.48 |
$ |
0.13 |
||||||
Weighted average common shares outstanding |
||||||||||||||
(shares in thousands) |
|
15,935 |
|
15,935 |
|
15,935 |
|
15,935 |
||||||
Diluted: |
||||||||||||||
Net income per share |
$ |
0.26 |
$ |
0.16 |
$ |
0.48 |
$ |
0.13 |
||||||
Weighted average common shares outstanding |
||||||||||||||
(shares in thousands) |
|
15,992 |
|
16,000 |
|
15,999 |
|
16,072 |
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
( |
||||||||
( |
Year ended |
|||||||
|
||||||||
2024 |
2023 |
|||||||
Cash flows from operating activities: |
||||||||
Net income |
$ |
7,709 |
$ |
2,059 |
||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
|
1,523 |
|
1,709 |
||||
Provision for (reversal of) credit losses, net |
|
76 |
|
(229) |
||||
Allowance of for obsolete inventories, net |
|
- |
|
116 |
||||
(Gain) loss on disposal of property, plant and equipment |
|
74 |
|
(18) |
||||
Unrealized holding (gain) loss on marketable securities |
|
(952) |
|
3,973 |
||||
Gain on sale of marketable securities |
|
- |
|
(581) |
||||
Deferred income tax benefit |
|
(165) |
|
(178) |
||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
|
3,642 |
|
2,720 |
||||
Inventories |
|
5,196 |
|
6,378 |
||||
Prepaid expenses and other current assets |
|
(79) |
|
777 |
||||
Accounts payable |
|
(1,739) |
|
(2,889) |
||||
Accrued payroll and employee benefits |
|
(784) |
|
332 |
||||
Customer deposits |
|
(504) |
|
(127) |
||||
Other accrued liabilities |
|
(753) |
|
(961) |
||||
Income taxes payable |
|
(36) |
|
|
(83) |
|||
Net cash provided by operating activities |
|
13,208 |
|
12,998 |
||||
Cash flows from investing activities |
||||||||
Purchase of property, plant and equipment |
|
(381) |
|
(792) |
||||
Proceeds from sale of property, plant and equipment, net of transaction costs |
|
232 |
|
67 |
||||
Purchase of marketable securities |
|
(1,352) |
|
(3,469) |
||||
Proceeds from sales of marketable securities |
|
- |
|
3,854 |
||||
(Increase) decrease of fixed deposits with original maturing over three months |
|
(10,926) |
|
1,301 |
||||
Decrease (increase) of fixed deposits with original maturing over twelve months |
|
1,154 |
|
(2,076) |
||||
Increase in held-to-maturity investment |
|
(5,157) |
|
- |
||||
Net cash used in investing activities |
|
(16,430) |
|
(1,115) |
||||
Cash flows from financing activities |
||||||||
Dividends paid |
|
(3,188) |
|
(3,188) |
||||
Proceeds from exercise of stock options |
|
- |
|
- |
||||
Net cash used in financing activities |
|
(3,188) |
|
(3,188) |
||||
Net decrease in cash and cash equivalents |
|
(6,410) |
|
8,695 |
||||
Cash and cash equivalents, beginning of year |
|
22,160 |
|
|
13,465 |
|||
Cash and cash equivalents, end of year |
|
15,750 |
|
22,160 |
||||
Supplementary disclosures of cash flow information: |
||||||||
Cash paid during the year for: |
||||||||
Interest |
|
- |
|
- |
||||
Income taxes |
|
227 |
|
|
418 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240620366991/en/
Investor Relations:
IMS Investor Relations
203.972.9200
jnesbett@imsinvestorrelations.com
Source: