Company: DSWL
Filing Date: 2025-11-13
Form Type: 6-K
Source: 0001171843-25-007261
Chunk: 8

Company: DESWELL INDUSTRIES INC
Filing Date: 2025-11-13
Form: 6-K
Chunk 8
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 the prior fiscal year.

SG&A expenses in the electronic segment increased by $134,000 to $3,203,000
or 11.3% of net sales in the segment for the six months ended September 30, 2025, as compared to $3,069,000 or 10.4% of net sales in the
segment for the corresponding period in fiscal 2025. The increase in SG&A expense was primarily related to increases of $105,000 in
staff costs, of $21,000 in travelling expense, and of $29,000 in selling expense, when compared to the corresponding period in the prior
fiscal year.

Other income - Other income was $158,000 for the six months ended September
30, 2025, as compared to other income of $360,000 in the corresponding six months of the prior fiscal year.

On a segment basis, other expense attributable to the plastic segment for the
six months ended September 30, 2025 was $57,000, as compared to other income of $50,000 for the same period in the prior fiscal year.
The decrease in other income was mainly due to decreases of $98,000 in exchange gain and of $42,000 in other income, offsetting an increase
of $19,000 from gain in disposal of fixed assets, as well as a reversal of provision of $28,000 for doubtful debts during the six months
ended September 30, 2025, as compared to the same period of last fiscal year.

Other income attributable to the electronic segment for the six months ended
September 30, 2025 was $215,000, as compared to other income of $310,000 for the corresponding period in the prior fiscal year. This decrease
in other income was mainly due to decreases of $32,000 in exchange gain, of $87,000 from gain related to product safety testing and certification
services, and of $45,000 in other income, offsetting an increase of $70,000 from gain in sales of materials during the six months ended
September 30, 2025, as compared to the same period of last fiscal year.

Operating income - Operating income was $2,514,000 for the six months ended
September 30, 2025, as compared to operating income of $1,820,000 in the corresponding six months in the prior fiscal year.

Corporate expenses of $559,000 and $691,000