This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Deswell Announces First Quarter Results

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 and metallic 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)

       
June 30, March 31,

2011

2011

ASSETS (Unaudited) (Audited)
Current assets :
Cash and cash equivalents $ 25,646 $ 35,635
Fixed deposits maturing over three months 3,089 -
Marketable securities 903 1,045
Available-for-sale securities 8,148 -
Accounts receivable, net 17,130 17,210
Inventories 18,990 19,517
Prepaid expenses and other current assets   2,389   2,154
Total current assets 76,295 75,561
Property, plant and equipment - net 49,763 51,052
Deferred income tax assets 157 154
Goodwill   392   392
Total assets $ 126,607 $ 127,159
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 6,939 $ 6,864
Accrued payroll and employee benefits 3,846 3,971
Customer deposits 2,463 1,965
Other accrued liabilities 1,381 1,453
Income taxes payable 627 596
Deferred income tax liabilities 213 213
Dividend payable   810   810
Total current liabilities   16,279   15,872
Shareholders' equity
Common shares nil par value - authorized 30,000,000 shares,
shares issued and outstanding June 30, 2011 - 16,196,810;
March 31, 2011 - 16,194,810 50,816 50,809
Additional paid-in capital 7,716 7,719
Accumulated other comprehensive income 5,088 5,316
Retained earnings   46,708   47,443
Total shareholders' equity   110,328   111,287
Total liabilities and shareholders' equity $ 126,607 $ 127,159
DESWELL INDUSTRIES, INC.
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
( U.S. dollars in thousands, except per share data )
     
Quarter ended Quarter ended

June 30,

June 30,

  2011     2010  
Net sales $ 18,324 $ 20,486
Cost of sales   15,163     19,585  
Gross profit 3,161 901
Selling, general and administrative expenses 3,095 3,822
Other income, net   48     243  
Operating income (loss) 114 (2,678 )
Non-operating income (expenses), net   (11 )   397  
Income (loss) before income taxes 103 (2,281 )
Income taxes   28     (2 )
Net income (loss) attributable to Deswell Industries, Inc. $ 75 $ (2,279 )
 
Other comprehensive loss
Unrealized loss on available for sale securities $ (228 ) $ -  
Comprehensive loss attributable to Deswell Industries, Inc. $ (153 ) $ (2,279 )
Net income (loss) per share attributable to Deswell Industries, Inc.
Basic:
Net income (loss) per share $ 0.0046   $ (0.14 )
Weighted average common shares outstanding
shares in thousands)   16,197     16,192  
Diluted:
Net income (loss) per share $ 0.0046   $ (0.14 )
Weighted average number of shares
outstanding (in thousands)   16,204     16,205  




3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs