Company: DSWL
Filing Date: 2025-06-18
Form Type: 6-K
Source: 0001171843-25-003948
Chunk: 12

Company: DESWELL INDUSTRIES INC
Filing Date: 2025-06-18
Form: 6-K
Chunk 12
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and a deferred tax provision of $22,000 during the year-ago six months. In the electronic segment, there was a current tax benefit of
$50,000 and a deferred tax provision of $79,000 for the six months ended March 31, 2025, as compared to a current tax benefit of $42,000
and a deferred tax benefit of $167,000 for the corresponding six months of fiscal 2024.

Net Income – The Company had net income of $4,953,000 for the six
months ended March 31, 2025, as compared to net income of $4,152,000 for the six months ended March 31, 2024. The increase in net
income for the second half of fiscal 2025 was mainly attributable to increase in non-operating income as described above.

Net income for the plastic segment for the six months ended March 31, 2025
totaled $1,682,000, as compared to net income of $1,841,000 for the corresponding six months in fiscal 2024. The decreased net income
in the second half of fiscal 2025 for the plastic segment was mainly the result of decreases in gross margin and increase in SG&A
expenses as a percentage of sales, as described above.

Net income for the electronic segment for the six months ended March 31,
2025 was $3,928,000, compared to net income of $3,019,000 for the corresponding six months of fiscal 2024. The increase in
net income in the second half of fiscal 2025 for the electronic segment was mainly attributable to increases in sales revenues, as well
as in other and non-operating income as described above.

Net Sales - The Company's net sales for the year ended March 31, 2025 were
$67,610,000, a decrease of $1,758,000 or 2.5% as compared to $69,368,000 in the corresponding period in fiscal 2024. The decrease was
related to decreases in sales revenues of $1,185,000 in our plastic segment, and of $573,000 in our electronic segment, as compared with
respective net sales from these segments in the corresponding period of the prior fiscal year.

The revenue decrease in the plastic segment was mainly due to decreases
in orders of $485,000 from existing customers for printer, telephone and office equipment, as well as