Company: DSWL
Filing Date: 2025-06-18
Form Type: 6-K
Source: 0001171843-25-003948
Chunk: 9

Company: DESWELL INDUSTRIES INC
Filing Date: 2025-06-18
Form: 6-K
Chunk 9
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 second half of fiscal 2025 was $6,779,000,
representing a gross profit margin of 20.9%. This is compared to the overall gross profit and gross profit margin of $6,541,000 or 20.7%
for the second half of fiscal 2024.

Gross profit in the plastic segment for the six months ended March 31,
2025 was $1,227,000 or 22.6% of net sales in the segment, as compared to $1,650,000 or 27.0% of net sales in the segment for the same
period in the prior fiscal year. The decrease in gross margin for the plastic segment was mainly due to the relative increase in the costs
of primary materials and labor, resulting from the drop in sales revenues, when compared with the same period of last year, as well as
the change of product mix.

During the six months ended March 31, 2025, gross profit in the electronic
segment was $5,552,000 or 20.6% of net sales in the segment, as compared to $4,891,000 or 19.2% of net sales in the segment for the same
period in the last fiscal year. The increase in gross margin was mainly attributable to the relatively lower raw materials and labor costs
as a result of the increase in sales revenues, and the cost control measures taken, as compared with the same period of last fiscal year.

Selling, General and Administrative Expenses - SG&A expenses for the
six months ended March 31, 2025 were $5,876,000 or 18.1% of total net sales, as compared to $5,241,000 or 16.6% of total net sales for
the six months ended March 31, 2024.

Corporate expenses decreased by $51,000 to $657,000 for the six months
ended March 31, 2025 as compared to $708,000 for the same period ended March 31, 2024. The decrease was primarily related to decreases
in audit, legal and professional fees.

SG&A expenses in the plastic segment increased by $459,000 to $2,171,000
or 40.0% of net sales in the segment for the second half of fiscal 2025, compared to $1,712,000 or 28.1% of net sales in the segment for
the corresponding period in fiscal