Deswell Industries, Inc. Reports Unaudited Consolidated Earnings Results for the Six Months Ended September 30, 2017
November 16, 2017 at 06:45 pm IST
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Deswell Industries, Inc. reported unaudited consolidated earnings results for the six months ended September 30, 2017. Net sales for the first six months ended September 30, 2017 were $29.8 million, an increase of 44.2% compared to net sales of $20.6 million for the six months ended September 30, 2016. Net sales increased by 30.6% to $13.8 million in the plastic segment and increased by 58.4% to $16.0 million in the company’s electronic segment. The operating income in the first half of fiscal 2018 was $1.6 million, compared to an operating loss of $1.8 million for the same period of fiscal 2017. The company reported net income attributable to the company of $3.7 million for the six months ended September 30, 2017, compared to net income of $0.711 million for the six months ended September 30, 2016. This was primarily due to an increase in gross profit and decrease in SG&A expense, as a percentage of sales, for the six months ended September 30, 2017. The company reported basic and diluted income per share of $0.23 for the first half of fiscal 2018 compared to basic and diluted income per share of $0.04 for the six months ended September 30, 2016. Income before income taxes was $3,715,000 against $798,000 a year ago. Net cash provided by operating activities was $2,138,000 against $921,000 a year ago. Purchase of property, plant and equipment was $577,000 against $397,000 a year ago. The company’s strong operating performance in the first half of 2018 is a result of the strategic initiatives the company has focused on over the past few years. The top line growth reflects the company’s efforts to drive revenue by expanding business with existing customers and adding new customers; both the company’s plastic and electronic assembly segments saw strong growth in the period. Furthermore, the company has continued to reduce costs, enabling the company to achieve enhanced margins and considerable growth in earnings per share.
Deswell Industries, Inc. is engaged in the manufacturing and selling of injection-molded plastic parts and components. The Company also provides manufacturing services for electronic products and subassemblies, and manufactures metallic molds and accessory parts for original equipment manufacturers (OEMs) and contract manufacturers. Its segments include plastic injection molding and electronic products assembling. It produces a range of plastic parts and components that are used in the manufacture of consumer and industrial products, using various plastic injection technologies, such as film injection, integrated injection and insert injection. Its products include plastic components of electronic entertainment products; cases for flashlights, telephones, paging machines, projectors and alarm clocks; toner cartridges and cases for photocopy and printer machines; parts for electrical products, such as air-conditioning and ventilators; laser key caps, and automobile components.