DESWELL INDUSTRIES
|
||||||||
CONSOLIDATED BALANCE SHEET
|
||||||||
( U.S. dollars in thousands)
|
||||||||
Sept. 30
|
March 31,
|
|||||||
2019
|
2019
|
|||||||
ASSETS
|
(Unaudited)
|
(Audited)
|
||||||
Current assets :
|
||||||||
Cash and cash equivalents
|
$
|
13,123
|
$
|
14,371
|
||||
Fixed deposits maturing over three months
|
1,842
|
371
|
||||||
Time deposits maturing over twelve months - current portion
|
-
|
-
|
||||||
Marketable securities
|
22,857
|
24,446
|
||||||
Accounts receivable, net
|
21,568
|
15,734
|
||||||
Inventories
|
10,863
|
13,030
|
||||||
Prepaid expenses and other current assets
|
2,012
|
2,006
|
||||||
Total current assets
|
72,265
|
69,958
|
||||||
Property, plant and equipment - net
|
29,428
|
30,211
|
||||||
Time deposits maturing over twelve months
|
1,417
|
-
|
||||||
Total assets
|
$
|
103,110
|
$
|
100,169
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Current liabilities
|
||||||||
Accounts payable
|
$
|
8,723
|
$
|
6,253
|
||||
Accrued payroll and employee benefits
|
6,044
|
5,676
|
||||||
Customer deposits
|
1,081
|
1,298
|
||||||
Other accrued liabilities
|
1,762
|
1,662
|
||||||
Income taxes payable
|
706
|
657
|
||||||
Total current liabilities
|
18,316
|
15,546
|
||||||
Deferred income tax liabilities
|
631
|
659
|
||||||
Total liabilities
|
18,947
|
16,205
|
||||||
Shareholders' equity
|
||||||||
Common shares nil par value; authorized 30,000,000 shares; 17,031,810 and 17,061,810
|
||||||||
shares issued as of September 30, 2019 and March 31, 2019; 15,915,239 and 15,885,239
|
53,143
|
53,063
|
||||||
shares outstanding as of September 30, 2019 and March 31, 2019
|
||||||||
Additional paid-in capital
|
5,168
|
5,184
|
||||||
Accumulated other comprehensive income
|
5,316
|
5,316
|
||||||
Retained earnings
|
20,536
|
20,401
|
||||||
Total shareholders' equity
|
84,163
|
83,964
|
||||||
Total liabilities and shareholders' equity
|
$
|
103,110
|
$
|
100,169
|
Six months ended
|
||||||||
September 30,
|
||||||||
2019
|
2018
|
|||||||
Net sales
|
$
|
37,713
|
$
|
34,795
|
||||
Cost of sales
|
31,169
|
30,005
|
||||||
Gross profit
|
6,544
|
4,790
|
||||||
Selling, general and administrative expenses
|
5,208
|
4,763
|
||||||
Other income (expense), net
|
(180
|
)
|
223
|
|||||
Operating income
|
1, 156
|
250
|
||||||
Non-operating income, net
|
219
|
2,482
|
||||||
Income before income taxes
|
1,375
|
2,732
|
||||||
Income taxes
|
126
|
(25
|
)
|
|||||
Net income attributable to Deswell Industries, Inc.
|
$
|
1,249
|
$
|
2,757
|
||||
Other comprehensive income
|
$
|
-
|
$ | - | ||||
Comprehensive income attributable to Deswell Industries, Inc.
|
$
|
1,249
|
$
|
2,757
|
||||
Net income per share attributable to
|
||||||||
Deswell Industries, Inc. (note 5)
|
||||||||
Basic:
|
||||||||
Net income per share
|
$
|
0.08
|
$
|
0.17
|
||||
Weighted average common shares outstanding
|
||||||||
shares (in thousands)
|
15,912
|
15,885
|
||||||
Diluted:
|
||||||||
Net income per share
|
$
|
0.08
|
$
|
0.17
|
||||
Weighted average number of shares
|
||||||||
outstanding (in thousands)
|
15,973
|
15,975
|
DESWELL INDUSTRIES, INC.
|
||||||||
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
|
||||||||
( U.S. dollars in thousands )
|
Six months ended
|
Six months ended
|
||||||
September 30,
|
September 30,
|
|||||||
2019
|
2018
|
|||||||
Cash flows from operating activities :
|
||||||||
Net income
|
$
|
1,249
|
$
|
2,757
|
||||
Adjustments to reconcile net income to net cash
|
||||||||
provided by operating activities :
|
||||||||
Depreciation and amortization
|
1,014
|
1,099
|
||||||
Provision for doubtful accounts
|
202
|
58
|
||||||
Allowances for obsolete inventories
|
53
|
69
|
||||||
(Gain) Loss on disposal of property, plant and equipment
|
34
|
(1
|
)
|
|||||
Unrealized holding (gain) loss on marketable securities
|
1,252
|
(1,109
|
)
|
|||||
Realized (gain) on disposal of marketable securities
|
(29
|
)
|
(396
|
)
|
||||
Scrip dividend received
|
10
|
-
|
||||||
Deferred tax
|
(28
|
)
|
(179
|
)
|
||||
Changes in operating assets and liabilities :
|
||||||||
Accounts receivable
|
(6,036
|
)
|
(3,434
|
)
|
||||
Inventories
|
2,114
|
(106
|
)
|
|||||
Prepaid expenses and other current assets
|
(6
|
)
|
316
|
|||||
Accounts payable
|
2,470
|
593
|
||||||
Accrued payroll and employee benefits
|
368
|
-
|
||||||
Customer deposits
|
(217
|
)
|
(337
|
)
|
||||
Other accrued liabilities
|
100
|
42
|
||||||
Income taxes payable
|
49
|
23
|
||||||
Net cash (used in) provided by used in operating activities
|
2,599
|
(605
|
)
|
|||||
Cash flows from investing activities
|
||||||||
Purchase of property, plant and equipment
|
(270
|
)
|
(229
|
)
|
||||
Proceeds from disposal of property, plant and equipment,
|
5
|
13
|
||||||
Purchase of marketable securities
|
(1,264
|
)
|
(5,004
|
)
|
||||
Proceeds from disposal of marketable securities
|
1,620
|
4,854
|
||||||
Increase in fixed deposits maturing over three months
|
(1,471
|
)
|
1,690
|
|||||
Decrease in fixed deposits maturing over twelve months
|
(1,417
|
)
|
206
|
|||||
Net cash (used in ) provided by investing activities
|
(2,797
|
)
|
1,530
|
|||||
Cash flows from financing activities
|
||||||||
Dividends paid
|
(1,114
|
)
|
(635
|
)
|
||||
Exercise of stock options
|
64
|
-
|
||||||
Net cash used in financing activities
|
(1,050
|
)
|
(635
|
)
|
||||
Net increase (decrease) in cash and cash equivalents
|
(1,248
|
)
|
290
|
|||||
Cash and cash equivalents, at beginning of period
|
14,371
|
15,192
|
||||||
Cash and cash equivalents, at end of period
|
13,123
|
15,482
|
||||||
Supplementary disclosures of cash flow information :
|
||||||||
Cash paid during the period for :
|
||||||||
Interest
|
-
|
-
|
||||||
Income taxes
|
57
|
-
|
March 31, 2019
|
||||||
Cost
|
Gross Unrealized gain
|
Fair value
|
||||
Marketable securities
|
||||||
Equity securities
|
$21,746
|
$2,700
|
$24,446
|
|||
September 30, 2019
|
||||||
Cost
|
Gross Unrealized gain
|
Fair value
|
||||
Marketable securities
|
||||||
Equity securities
|
$21,409
|
$1,448
|
$22,857
|
September 30,
|
March 31,
|
|||||||
2019
|
2019
|
|||||||
Inventories by major categories :
|
||||||||
Raw materials
|
$
|
5,783
|
$
|
7,020
|
||||
Work in progress
|
3,776
|
3,884
|
||||||
Finished goods
|
1,304
|
2,126
|
||||||
$
|
10,863
|
$
|
13,030
|