Company: DSWL
Filing Date: 2025-06-18
Form Type: 6-K
Source: 0001171843-25-003948
Chunk: 11

Company: DESWELL INDUSTRIES INC
Filing Date: 2025-06-18
Form: 6-K
Chunk 11
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 Income - Operating income was $1,494,000 for the six months ended
March 31, 2025, as compared to operating income of $1,483,000 in the corresponding six months in the prior fiscal year.

Corporate expenses of $657,000 and $708,000 were incurred during the second
half of fiscal 2025 and 2024, respectively.

On a segment basis, the operating loss of the plastic segment was $842,000
in the six months ended March 31, 2025, as compared to operating loss of $127,000 in the corresponding period in fiscal 2024. The
increase in operating loss in the plastic segment was mainly due to the decrease in gross margin and increase in SG&A expenses as
described above.

The electronic segment reported operating income of $2,993,000 in the six
months ended March 31, 2025, compared to operating income of $2,318,000 in the corresponding period in fiscal 2024. The increase
in operating income was mainly due to the increases in gross margin and other income as described above.

Non-Operating Income – Non-operating income for the six months ended
March 31, 2025 was $3,340,000, as compared to non-operating income of $2,610,000 in the corresponding period in fiscal 2024. This
was primarily due to increases of $1,470,000 in realized gain from sale of marketable securities, $134,000 in dividend income from investments
in securities, $273,000 in interest income, offsetting decreases of $681,000 in fair value of the marketable securities held for sale,
and $376,000 from other income, during the six months ended March 31, 2025, as compared to the same period of the prior fiscal year.

Income Taxes – Income tax for the six months ended March 31, 2025
represented a current tax benefit of $121,000 and a deferred tax provision of $2,000, as compared to a current tax expense of $86,000
and a deferred tax benefit of $145,000 in the corresponding six months of the prior fiscal year.

On a segment basis, there was a current tax benefit of $71,000 and a deferred
tax benefit of $77,000 in the plastic segment for the six months ended March 31, 2025, as compared to a current tax expense of $128,