Company: DSWL
Filing Date: 2025-11-13
Form Type: 6-K
Source: 0001171843-25-007261
Chunk: 9

Company: DESWELL INDUSTRIES INC
Filing Date: 2025-11-13
Form: 6-K
Chunk 9
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 were incurred during the
first half of fiscal 2026 and 2025, respectively.

On a segment basis, the operating loss of the plastic segment was
$815,000 in the six months ended September 30, 2025, as compared to operating loss of $468,000 in the corresponding period in fiscal 2025. The
increase in operating loss in the plastic segment was mainly due to the decreases in gross margin and other income, as described above.

The electronic segment reported operating income of $3,887,000 in
the six months ended September 30, 2025, as compared to operating income of $2,979,000 in the corresponding period in fiscal 2025. The
increase in operating income was mainly due to the increase in gross margin as described above.

Non-operating income – Non-operating income for the six months
ended September 30, 2025 was $5,172,000, as compared to non-operating income of $4,646,000 in the prior year period The increase
in non-operating income was primarily due to increases of $2,881,000 in realized gain from sales of marketable securities, and $294,000
in interest income, offsetting decreases of $2,031,000 in unrealized holding gain on the fair value of marketable securities, as well
as of $549,000 in dividend income from securities investments during the six months ended September 30, 2025, as compared to the same
six months of the prior fiscal year.

Income Taxes – Income tax for the six months ended September
30, 2025 represented an income tax expense of $230,000 and a deferred tax benefit of $63,000, as compared to an income tax expense of
$303,000 and a deferred tax benefit of $22,000 in the corresponding six months of the prior fiscal year.

On a segment basis, there was an income tax expense of $13,000 and
a deferred tax benefit of $63,000 in the plastic segment for the six months ended September 30, 2025, as compared to an income tax expense
of $17,000 and a deferred tax benefit of $22,000 during the prior year period. Income tax expense in the electronic segment was $217,000
for the six months ended September 30, 2025, as compared to an income tax expense of $286,000 for the corresponding six months of fiscal
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