Deswell Industries, Inc. Announces Eps of $0.65 Per Share for the Second Quarter.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) Nov. 5, 2001- - - Second Quarter Dividend of $0.24 Per Share- -Board Approves Repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of up to 500,000 Common Shares- Deswell Industries, Inc. (Nasdaq: DSWL) today announced its results for the second quarter and six months ended September September: see month. 30, 2001. 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 quarter were $22.2 million, a decrease of 10.6% compared to sales of $24.8 million in the second quarter ended September 30, 2000. 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. decreased 24.9% to $3.8 million, compared to $5.1 million in the previous year, and net income decreased 9.4% to $3.6 million, compared to $4.0 million in the previous year. 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 decreased to $0.65 (based on 5,601,000 and 5,614,000 weighted average shares outstanding, respectively), compared to $0.75 and $0.74 respectively (based on 5,349,000 and 5,413,000 weighted average shares outstanding, respectively), in the second quarter ended September 30, 2000. Net sales for the six months ended September 30, 2001 were $44.1 million, an increase of 3.5% compared to sales of $42.6 million for the corresponding period in 2000. Operating income decreased 1.6% to $7.8 million, compared to $7.9 million in the previous year, and net income increased 3.5% to $7.0 million, compared to $6.8 million in the previous year. Basic earnings per share and diluted earnings per share decreased to $1.25 (based on 5,600,000 and 5,606,000 weighted average shares outstanding, respectively), compared to $1.27 and $1.26 (based on 5,348,000 and 5,379,00 weighted average shares outstanding, respectively), for the six months ended September 30, 2000. The Company's balance sheet remains strong. The Company's cash and cash equivalents for the six months increased to $28.8 million, compared to $25.3 million on 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. Lau, chairman and chief executive officer, commented, "During the second quarter, we were affected by the macroeconomic mac·ro·ec·o·nom·ics n. (used with a sing. verb) The study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors. conditions and the subsequent downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in global manufacturing. This slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. , exacerbated by the September 11 terrorist attacks, has impacted most 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 manufacturers in Asia. We are obviously not immune to the downturn, but remain confident that Deswell's unmatched production teams and increased marketing focus should help us endure and hopefully prosper during this difficult period. We are still moving forward on our new plastics manufacturing facility in Dongguan, albeit at a more cautious pace. The layout and design should be completed by the end of this year and construction is expected to commence in February 2002. The design and construction phase should cost approximately $9 million." Second Quarter Dividends The Company also announced that on November 2, 2001 its board of directors declared a dividend of $0.24 per share for the second quarter. The dividend will be payable on November 27, 2001 to shareholders of record as of November 13, 2001. Repurchase of Common Shares The Company also announced that its board of directors has approved a stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program to buy back up to an aggregate of 500,000 common shares in the open market from time to time at prevailing market prices for a nine month period. The Company plans to use existing cash balances to finance the repurchases. Rescheduling of Annual General Meeting Due to the postponement of the 2001 Annual General Meeting in light of the September terrorist attacks, the Company has rescheduled the event for January 7, 2002 at 10:00 a.m. in the Linden Linden, city, United States Linden, city (1990 pop. 36,701), Union co., NE N.J., in the New York metropolitan area; inc. 1925. During the first half of the 20th cent. Room of the Four Seasons Hotel, 300 S. Doheny Drive Doheny Drive is a major north/south thoroughfare for Beverly Hills and West Hollywood. It starts a few blocks south of Pico Boulevard and travels north past Sunset Boulevard. Doheny encounters few traffic lights, making it a relatively quick trip north/south. , Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , CA 90048. 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 Mita Industrial Co. (H.K.) Limited, Epson Precision (H.K.) Ltd., Namtai Electronics (Shenzhen) Co. Ltd., Inter-Tel Incorporated, Vtech Communications 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.
DESWELL INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPRATIONS (UNAUDITED)
(U.S. dollars in thousands, except per share date)
Quarter ended Six months ended
September 30, September 30,
2001 2000 2001 2000
(Unaudited) (Unaudited)
Net sales $22,189 $24,809 $44,073 $42,595
Cost of sales 14,625 15,654 28,986 27,185
Gross profit 7,564 9,155 15,087 15,410
Selling, general and
administrative expenses 3,758 4,084 7,325 7,519
Operating income 3,806 5,071 7,762 7,891
Interest expense - (5) (11) (5)
Other income, net 245 (55) 324 174
Income before income taxes 4,051 5,011 8,075 8,060
Income taxes 195 259 405 463
Income before minority
interests 3,856 4,752 7,670 7,597
Minority interests 221 741 666 829
Net income $3,635 $4,011 $7,004 $6,768
Basic earnings per share $0.65 $0.75 $1.25 $1.27
Weighted average number of
shares
outstanding (in thousands) 5,601 5,349 5,600 5,348
Diluted earnings per share $0.65 $0.74 $1.25 $1.26
Diluted weighted average
number of shares
outstanding (in thousands) 5,614 5,413 5,606 5,379
DESWELL INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEET
(U.S. dollars in thousands)
September 30, March 31,
2001 2001
ASSETS (Unaudited) (Audited)
Current assets :
Cash and cash equivalents 28,817 $ 25,330
Restricted cash
2,429 1,988
Marketable securities 493 -
Accounts receivable, net 18,611 15,777
Inventories 12,700 12,034
Prepaid expenses and other current
assets 2,639 1,833
Income taxes receivable 428 428
Total current assets 66,117 57,390
Property, plant and equipment
- net 24,787 25,563
Goodwill 495 513
Total assets $ 91,399 $ 83,466
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 7,404 $ 4,274
Bank loans 482 -
Customer deposits and
accrued expenses 6,509 5,462
Income taxes payable 325 298
Total current liabilities 14,720 10,034
Deferred income tax 15 15
Minority interests 10,269 9,540
Shareholders' equity
Common stock
- authorized 20,000,000 shares;
issued and outstanding
5,601,431 shares at
September 30, 2001 and
5,597,931 shares
at March 31, 2001 56 56
Additional paid-in capital 26,894 26,843
Retained earnings 39,445 36,978
Total shareholders' equity 66,395 63,877
Total liabilities and
shareholders' equity $ 91,399 $ 83,466
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion