Deswell Industries has released its unaudited financial results for the first half of fiscal 2025, ending September 30, 2024. Net sales during this period totaled $35.2 million, reflecting a decrease of 6.8% compared to the same period last year. The plastic segment saw an 8.1% drop in sales to $5.8 million, while the electronics segment saw a smaller decline of 6.5%, bringing in $29.4 million.
Despite the revenue dip, the company’s gross margin held steady at 19.5%, supported by effective cost control measures. In the plastic segment, gross margin decreased slightly to 19.5% compared to 19.6% last year, while the electronic segment maintained a stable margin of 19.5%. Operating income for the period was $1.8 million, down from $2.3 million in the same period of fiscal 2024.
Deswell’s net income for the first half of fiscal 2025 rose to $6.2 million, up from $3.6 million in 2023. This increase was primarily driven by a significant boost in non-operating income, which reached $4.6 million. Basic and diluted earnings per share for the period were $0.39, compared to $0.22 for the first half of fiscal 2024.
The company also announced a dividend of $0.10 per share, payable on December 23, 2024, to shareholders as of December 2, 2024.
CEO Edward So commented on the results, noting that despite the decrease in sales, Deswell had successfully managed costs, maintained strong gross margins, and achieved solid profitability. The company remains optimistic about future product developments, especially in the commercial audio market, and plans to start delivering audio systems to airport customers in the first half of calendar 2025.
Deswell continues to maintain a strong balance sheet, with $13.4 million in cash and no outstanding debt as of September 30, 2024.
