Deswell Industries, Inc. Announces 18% Increase in Fourth Quarter Net Income; Company also Announces Fourth Quarter Dividend of $0.28 per Share.Business Editors HONG n. 1. A mercantile establishment or factory for foreign trade in China, as formerly at Canton; a succession of offices connected by a common passage and used for business or storage. KONG--(BUSINESS WIRE)--June 6, 2002 Deswell Industries, Inc. (Nasdaq: DSWL) today announced its results for the fourth quarter and year ended March 31, 2002. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the fourth quarter increased 13% to $19.0 million compared to sales of $16.9 million in the fourth quarter ended March 31, 2001. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased 69% to $2.7 million for the most recent quarter, compared to $1.6 million for the year-ago quarter. Net income for the fourth quarter increased 18% to $2.9 million compared to $2.5 million for the year-ago quarter. Basic earnings per share and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of increased to $0.52 and $0.50 respectively (based on 5,606,000 and 5,745,000 weighted average shares outstanding, respectively), compared to $0.45 and $0.45 respectively (based on 5,451,000 and 5,465,000 weighted average shares outstanding, respectively), in the fourth quarter ended March 31, 2001. Net sales for the year ended March 31, 2002, were $83.3 million, an increase of 3% compared to sales of $80.8 million for the year ended March 31, 2001. Operating income increased 9% to 13.9 million, compared to $12.8 million in the previous year, and net income increased 4% to $13.3 million, compared to $12.8 million in the previous year. Basic earnings per share and diluted earnings per share increased to $2.38 and $2.36 respectively (based on 5,602,000 and 5,644,000 weighted average shares outstanding, respectively), compared to $2.38 and $2.36 respectively (based on 5,376,000 and 5,435,000 weighted average shares outstanding, respectively), for the year ended March 31, 2001. The Company's balance sheet remains strong. The Company's cash and cash equivalents increased to $31.5 million at March 31, 2002, compared to $25.3 million on March 31, 2001. Working capital was $54.9 million as of March 31, 2002, versus $47.3 million as of March 31, 2001. The Company has no long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. borrowings. Mr. Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a Lau, chairman and chief executive officer, commented, "Our efforts to turn around the performance at our electronics-assembly and metallic-products divisions paid off during the quarter with a combined 44% increase in sales at these two divisions. This increase was slightly offset by Jetcrown, our injection-molding division, which experienced a 3.5% decrease in revenues due to the soft economy, particularly in the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. industry where we have some key OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and customers, and a 5% to 10% reduction in pricing. The impact of the pricing adjustment was minimized min·i·mize tr.v. min·i·mized, min·i·miz·ing, min·i·miz·es 1. a. To reduce to the smallest possible amount, extent, size, or degree. b. Usage Problem To reduce. See Usage Note at minimal. by higher sales volume and increased efficiency during the quarter. Furthermore, we are encouraged about the prospects for our injection-molding division, particularly due to China's entry into the WTO See World Trade Organization. . The gradual The Gradual (Latin: graduale, sometimes called the Grail) is a chant in the extraordinary form of the Roman Catholic Mass, sung after the reading or singing of the Epistle and before the Alleluia, or, during penitential seasons, before the Tract. shift of our injection operation to a new factory in early fiscal 2003 significantly increases our production capacity with considerable cost benefits. These savings should be substantially realized in the third quarter of fiscal 2003." Mr. Lau continued, "Throughout the year we focused on keeping costs down to maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. profits in this uncertain economic environment. I am particularly pleased with our strong gross margins and reduced SG&A as a percentage of sales for the quarter and the year despite increased rental RENTAL. A roll or list of the rents of an estate containing the description of the lands let, the names of the tenants, and other particulars connected with such estate. This is the same as rent roll, from which it is said to be corrupted. and transportation expenses, as well as an expanded marketing force." Fourth Quarter & Final Dividends The Company also announced that on May 30, 2002, its board of directors declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a final cash dividend of $0.28 per share (totally $1.00 cash dividend per share for the year ended March 31, 2002, compared to $0.90 per share in 2001). The dividend will be payable on July July: see month. 3, 2002, to shareholders of record as of June June: see month. 17, 2002. Deswell manufactures injection-molded plastic parts and components, electronic products and subassemblies, and metallic products for original equipment manufacturers ("OEMs") and contract manufacturers at its factories in the People's Republic People's Republic n. A political organization founded and controlled by a national Communist party. of China. The Company produces a wide variety of plastic parts and components used in the manufacture of consumer and industrial products; printed circuit board assemblies using surface mount ("SMT (1) (Surface Mount Technology) See surface mount. (2) (Station ManagemenT) An FDDI network management protocol that provides direct management. Only one node requires the software. SMT - Station Management "), and pin-through hole ("PHT PHT Phenytoin (antiepileptic, Dilantin) PHT Pulmonary Hypertension PhT Pharmacy Technician PHT Post-Harvest Technology PHT Pattern History Table PHT Pressure Half Time PHT Public Health Trust ") interconnection in·ter·con·nect v. in·ter·con·nect·ed, in·ter·con·nect·ing, in·ter·con·nects v.intr. To be connected with each other: The two buildings interconnect. v.tr. technologies; and finished products such as telephones, telephone answering machines, sophisticated studio-quality audio equipment and computer peripherals. The Company's customers include Kyocera Kyocera Corporation (京セラ株式会社 Mita Industrial Co. (H.K.) Limited, Epson Precision (H.K.) Ltd., Namtai Electronics (Shenzhen Shenzhen (shĕn`jŭn`), city (1994 est. pop. 695,600), S Guangdong prov., China, on the South China Sea, N of Hong Kong. Designated a special economic zone in 1979, the city's spectacular economic growth led China to create over a dozen more ) Co. Ltd., Inter-Tel Incorporated, Vtech Telecommunications Ltd., Peavey Electronics Peavey Electronics Corporation is one of the largest audio equipment manufacturers in the world, headquartered in Meridian, Mississippi in the United States. History Hartley Peavey founded Peavey Electronics in 1965 after building his first amplifier in 1957. Corporation, and Emerson. To learn more about Deswell Industries, Inc., please visit the Company's web site at www.deswell.com.
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
(U.S. dollars in thousands, except per share data)
Quarter ended Year ended
March 31, March 31,
2002 2001 2002 2001
---- ---- ---- ----
(Unaudited) (Unaudited) (Audited)
Net sales $19,030 $16,876 $ 83,320 $ 80,847
Cost of sales 12,470 11,654 54,448 52,596
------------- --------- ----------- -----------
Gross profit 6,560 5,222 28,872 28,251
Selling, general
and administrative
expenses 3,836 3,613 14,939 15,414
------------- --------- ----------- -----------
Operating income 2,724 1,609 13,933 12,837
Interest expense (7) (1) (26) (6)
Other income, net 397 305 877 915
------------- --------- ----------- -----------
Income before
income taxes 3,114 1,913 14,784 13,746
Income taxes 43 (245) 535 315
------------- --------- ----------- -----------
Income before
minority interests 3,071 2,158 14,249 13,431
Minority interests 181 (295) 925 621
------------- --------- ----------- -----------
Net income $ 2,890 $ 2,453 $13,324 $12,810
============= ========= =========== ===========
Basic earnings
per share $ 0.52 $ 0.45 $ 2.38 $ 2.38
============= ========= =========== ===========
Weighted average
number of shares
outstanding
(in thousands) 5,606 5,451 5,602 5,376
============= ========= =========== ===========
Diluted earnings
per share $0.50 $0.45 $2.36 $ 2.36
============= ========= =========== ===========
Diluted weighted
average number
of shares
outstanding
(in thousands) 5,745 5,465 5,644 5,435
============= ========= =========== ===========
DESWELL INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEET
(U.S. dollars in thousands)
March 31, March 31,
2002 2001
---- ----
ASSETS (Unaudited) (Audited)
Current assets:
Cash and cash equivalents $ 31,534 $ 25,330
Restricted cash 2,861 1,988
Marketable securities 1,115 -
Accounts receivable, net 16,888 15,777
Inventories 13,225 12,034
Prepaid expenses and
other current assets 3,421 1,833
Income taxes receivable 428 428
---------------- ---------------
Total current assets 69,472 57,390
Property, plant and equipment
- net 24,794 25,563
Goodwill 478 513
---------------- ---------------
Total assets $ 94,744 $ 83,466
================ ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 7,583 $ 4,274
Bank loans 482 -
Customer deposits and
accrued expenses 6,320 5,463
Income taxes payable 165 297
---------------- ---------------
Total current
liabilities 14,550 10,034
---------------- ---------------
Minority interests 10,528 9,540
---------------- ---------------
Deferred income tax 15 15
---------------- ---------------
Shareholders' equity
Common stock
- authorized 20,000,000
shares; issued and
outstanding
5,580,331 shares at
March 31, 2002 and
5,597,931 shares at
March 31, 2001 56 56
Additional paid-in capital 26,522 26,843
Retained earnings 43,073 36,978
---------------- ---------------
Total shareholders'
equity 69,651 63,877
---------------- ---------------
Total liabilities and
shareholders' equity $ 94,744 $ 83,466
================ ===============
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion