|
For and on behalf of
Deswell Industries, Inc.
by
|
March 31,
|
March 31,
|
|||||||
2021
|
2020
|
|||||||
ASSETS
|
(Unaudited)
|
(Audited)
|
||||||
Current assets :
|
||||||||
Cash and cash equivalents
|
$
|
20,223
|
$
|
22,514
|
||||
Fixed deposits maturing over three months
|
2,700
|
783
|
||||||
Time deposits maturing over twelve months-current portion
|
1,519
|
-
|
||||||
Marketable securities (note 2)
|
22,373
|
19,441
|
||||||
Accounts receivable, net
|
14,708
|
12,301
|
||||||
Inventories (note 3)
|
16,193
|
8,578
|
||||||
Prepaid expenses and other current assets
|
2,489
|
1,752
|
||||||
Total current assets
|
80,205
|
65,369
|
||||||
Property, plant and equipment - net
|
27,323
|
28,586
|
||||||
Time deposits maturing over twelve months
|
332
|
1,424
|
||||||
Total assets
|
$
|
107,860
|
$
|
95,379
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Current liabilities
|
||||||||
Accounts payable
|
$
|
9,522
|
$
|
4,604
|
||||
Accrued payroll and employee benefits
|
7,107
|
6,077
|
||||||
Customer deposits
|
1,683
|
1,172
|
||||||
Other accrued liabilities
|
2,016
|
1,718
|
||||||
Income taxes payable
|
886
|
735
|
||||||
Total current liabilities
|
21,214
|
14,306
|
||||||
Deferred income tax liabilities
|
957
|
751
|
||||||
Total liabilities
|
22,171
|
15,057
|
||||||
Shareholders' equity
|
||||||||
Common shares nil par value - authorized 30,000,000 shares,
|
||||||||
17,061,810 shares issued as of March 31, 2020 and March 31, 2021; 15,915,239 shares outstanding as of
|
||||||||
March 31, 2020 and 2021
|
53,143
|
53,143
|
||||||
Treasury stock at cost; 1,146,571 shares as of
|
||||||||
March 31, 2020 and 2021
|
(2,821
|
)
|
(2,821
|
)
|
||||
Additional paid-in capital
|
7,989
|
7,989
|
||||||
Accumulated other comprehensive income
|
5,316
|
5,316
|
||||||
Retained earnings
|
22,062
|
16,695
|
||||||
Total shareholders' equity
|
85,689
|
80,322
|
||||||
Total liabilities and shareholders' equity
|
$
|
107,860
|
$
|
95,379
|
Six months ended
|
Year ended
|
||||||||||||||
March 31,
|
March 31,
|
||||||||||||||
2021
|
2020
|
2021
|
2020
|
||||||||||||
Net sales
|
$
|
37,196
|
$
|
27,655
|
$
|
64,886
|
$
|
65,368
|
|||||||
Cost of sales
|
29,625
|
22,335
|
51,720
|
53,504
|
|||||||||||
Gross profit
|
7,571
|
5,320
|
13,166
|
11,864
|
|||||||||||
Selling, general and administrative expenses
|
5,590
|
4,818
|
10,310
|
10,026
|
|||||||||||
Other income (expense), net
|
321
|
(245
|
)
|
405
|
(425
|
)
|
|||||||||
Operating income
|
2,302
|
257
|
3,261
|
1,413
|
|||||||||||
Non-operating income (expense), net
|
4,641
|
(2,579
|
)
|
5,445
|
(2,360
|
)
|
|||||||||
Income (loss) before income taxes
|
6,943
|
(2,322
|
)
|
8,706
|
(947
|
)
|
|||||||||
Income taxes
|
244
|
247
|
475
|
373
|
|||||||||||
Net income (loss) attributable to Deswell Industries, Inc.
|
$
|
6,699
|
$
|
(2,569
|
)
|
$
|
8,231
|
$
|
(1,320
|
)
|
|||||
Other comprehensive income
|
$ | - | $ | - | $ | - | $ | - | |||||||
Total Comprehensive income (loss) attributable to Deswell Industries, Inc.
|
$
|
6,699
|
$
|
(2,569
|
)
|
$
|
8,231
|
$
|
(1,320
|
)
|
|||||
Net income (loss) per share attributable to
|
|||||||||||||||
Deswell Industries, Inc. (note 4)
|
|||||||||||||||
Basic:
|
|||||||||||||||
Net income (loss) per share
|
$
|
0.42
|
$
|
(0.16
|
)
|
$
|
0.52
|
$
|
(0.08
|
)
|
|||||
Weighted average common shares outstanding
|
|||||||||||||||
shares (in thousands)
|
15,915
|
15,915
|
15,915
|
15,914
|
|||||||||||
Diluted:
|
|||||||||||||||
Net income (loss) per share
|
$
|
0.42
|
$
|
(0.16
|
)
|
$
|
0.51
|
$
|
(0.08
|
)
|
|||||
Weighted average number of shares
|
|||||||||||||||
outstanding (in thousands)
|
15,995
|
15,966
|
16,047
|
15,914
|
( U.S. dollars in thousands )
|
Year ended
|
|||||||
March 31,
|
||||||||
2021
|
2020
|
|||||||
Cash flows from operating activities :
|
||||||||
Net income (loss)
|
$
|
8,231
|
$
|
(1,320
|
)
|
|||
Adjustments to reconcile net loss to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
1,755
|
1,973
|
||||||
Provision for doubtful accounts, net
|
397
|
297
|
||||||
Additional charges for (reversal of) obsolescence allowance of inventories, net
|
(9
|
)
|
426
|
|||||
Gain on disposal of property, plant and equipment
|
(22
|
)
|
(29
|
)
|
||||
Unrealized holding (gain) loss on marketable
|
|
|
|
|||||
securities
|
(2,010 | ) |
5,179 | |||||
Gain on sales of marketable securities
|
(333
|
)
|
(29
|
)
|
||||
Scrip dividend received
|
(19
|
)
|
(175
|
)
|
||||
Deferred income tax expense
|
206
|
92
|
||||||
Exchange (gain) loss from marketable securities
|
(661
|
)
|
531
|
|||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(2,804
|
)
|
3,136
|
|||||
Inventories
|
(7,606
|
)
|
4,026
|
|||||
Prepaid expenses and other current assets
|
(737
|
)
|
254
|
|||||
Accounts payable
|
4,918
|
(1,649
|
)
|
|||||
Accrued payroll and employee benefits
|
1,030
|
401
|
||||||
Customer deposits
|
511
|
(126
|
)
|
|||||
Other accrued liabilities
|
298
|
56
|
||||||
Income taxes payable
|
151
|
78
|
||||||
Net cash provided by operating activities
|
3,296
|
13,121
|
||||||
Cash flows from investing activities
|
||||||||
Purchase of property, plant and equipment
|
(551
|
)
|
(507
|
)
|
||||
Proceeds from sale of property, plant and equipment, net of transaction costs
|
81
|
188
|
||||||
Purchase of marketable securities
|
(6,059
|
)
|
(2,121
|
)
|
||||
Proceeds from sales of marketable securities
|
6,150
|
1,620
|
||||||
Increase of fixed deposits maturing over three months
|
(1,917
|
)
|
(412
|
)
|
||||
Increase of fixed deposits maturing over twelve months
|
(427
|
)
|
(1,424
|
)
|
||||
Net cash used in investing activities
|
(2,723
|
)
|
(2,656
|
)
|
||||
Cash flows from financing activities
|
||||||||
Dividends paid
|
(2,864 | ) | (2,386 | ) | ||||
Exercise of stock options
|
-
|
64
|
||||||
Net cash used in financing activities
|
(2,864
|
)
|
(2,322
|
)
|
||||
Net (decrease) increase in cash and cash equivalents
|
(2,291
|
)
|
8,143
|
|||||
Cash and cash equivalents, beginning of year
|
22,514
|
14,371
|
||||||
Cash and cash equivalents, end of year
|
20,223
|
22,514
|
||||||
Supplementary disclosures of cashflow information:
|
||||||||
Cash paid during the year for:
|
||||||||
Interest
|
-
|
-
|
||||||
Income taxes
|
236 | 160 |
March 31, 2021
|
|||||||||||
Cost
|
Gross
Unrealized
(loss)
|
Fair value
|
|||||||||
Marketable securities
|
|||||||||||
Equity securities
|
$
|
22,842
|
$
|
(469)
|
|
$
|
22,373
|
March 31, 2020
|
|||||||||||
Cost
|
Gross
Unrealized
gain
|
Fair value
|
|||||||||
Marketable securities
|
|||||||||||
Equity securities
|
$
|
21,920
|
$
|
(2,479)
|
|
$
|
19,441
|
March 31,
|
March 31,
|
||||||
2021
|
2020
|
||||||
Inventories by major categories :
|
|||||||
Raw materials
|
$
|
11,554
|
$
|
4,668
|
|||
Work in progress
|
2,646
|
2,386
|
|||||
Finished goods
|
1,993
|
1,524
|
|||||
$
|
16,193
|
$
|
8,578
|
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