Company: DSWL
Filing Date: 2025-06-18
Form Type: 6-K
Source: 0001171843-25-003948
Chunk: 2

Company: DESWELL INDUSTRIES INC
Filing Date: 2025-06-18
Form: 6-K
Chunk 2
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 income
in fiscal 2025, as compared to the prior fiscal year. Deswell reported basic and diluted net income per share of $0.70 for fiscal 2025
(based on 15,935,000 and 15,953,000 weighted average shares outstanding, respectively), as compared to basic and diluted net income per
share of $0.48 (based on 15,935,000 and 15,999,000 weighted average shares outstanding, respectively), for the prior fiscal year.

The Company's financial position remained strong, with $28.1 million in
cash and cash equivalents and working capital totaling $78.8 million as of March 31, 2025. Furthermore, the Company has no long-term or
short-term borrowings as of March 31, 2025.

Mr. Edward So, Chief Executive Officer, commented, “During full year fiscal 2025 we made
progress capturing new customers in both the market verticals we have traditionally addressed as well as new verticals. That said, with
a broad range of international customers we continued to see some sales pressure in the back half of fiscal 2025 given the global inflationary
environment and its impact on discretionary purchases, and we also continue to monitor the evolving international tariff environment closely.
Nonetheless, we were pleased to achieve improved margin performance as well as enhanced profitability in both the last six months of fiscal
2025 and for full year 2025. Our margin performance was favorably impacted by a decrease in labor and materials costs associated with
the depreciation of the renminbi, changes to our product mix, and the effect of the cost control measures we have undertaken.

“Our balance sheet is strong, reflecting a solid cash position and no debt providing us
with the resources to focus on increasing our customer base and recognition in the industry as a dependable and effective partner for
outsourced manufacturing operations”

Second Half Dividend

The Company also announced that its board of directors today declared a
cash dividend of $0.10 per share for the second half of the fiscal year ended March 31, 2025. The dividend will be payable on July 17,
2025 to shareholders of record as of July 3, 2025.

Dividends to be declared in the future will depend upon the Company’s
future growth and earnings, of which there can be no assurance, and the Company’s cash flow needs for future development.

About Deswell

Deswell manufactures injection-molded plastic parts