MACAO, CHINA – Deswell Industries reported net sales for the fiscal year ended Mar. 31 were $66.6 million, up 9.7% compared to fiscal 2018.

Net income for the year was $4.3 million, a decrease of 30.6%. Operating income decreased to $500,000, compared to $1.8 million for fiscal 2018.

Net sales for the six months ended Mar. 31 were $31.8 million, an increase of 2.8% year-over-year. Net sales increased 1% to $16.5 million in the electronic segment.

Net income for the fiscal second half of 2019 was $1.5 million, down 40% year-over-year. Operating income was $300,000, compared to $200,000 in the prior-year period.

As of Mar. 31, the company had $14.4 million in cash and cash equivalents, with working capital of $54.4 million.

“Fiscal 2019 represents our fourth consecutive year of revenue increases, with our sales up 75% since we returned to growth in fiscal 2016,” said CEO Edward So. “Both of our divisions performed well, benefiting from strong relationships with longstanding customers, as well as the addition of multiple new customers. We also saw improved gross margins during the six-month period due to reduced labor and raw material costs. Furthermore, we continue to monitor the ongoing US-China trade tension and are prepared to proactively adjust our strategy, if necessary, to support continued growth. Our balance sheet remains solid and we look forward to continuing to carefully allocate capital and focus on driving profitability.”

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