FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For August 10, 2004
DESWELL INDUSTRIES, INC.
(Registrant's name in English)
Unit 516 517, Hong Leong Industrial Complex,
No. 4 Wang Kwong Road, Kowloon Bay,
Kowloon, Hong Kong
(Address of principal executive offices)
DESWELL INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(U.S. dollars in thousands, except per share data)
Quarter ended
June 30,
2004 2003
--------------------
Net sales $ 28,788 $ 26,075
Cost of sales 20,470 17,664
--------- ---------
Gross profit 8,318 8,411
Selling, general and administrative expenses 3,506 3,765
--------- ---------
Operating income 4,812 4,646
Interest expense - -
Other income, net 30 562
--------- ---------
Income before income taxes 4,842 5,208
Income taxes 131 291
--------- ---------
Income before minority interests 4,711 4,917
Minority interests 716 563
--------- ---------
Net income $ 3,995 $ 4,354
========= =========
Basic:
Net income per share $ 0.44 $ 0.48
========= =========
Weighted average common shares 9,149 9,065
outstanding (in thousands) ========= =========
Diluted:
Net income per share $ 0.42 $ 0.47
========= =========
Weighted average common and potential 9,485 9,274
Common shares (in thousands) ========= =========
DESWELL INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEET
(U.S. dollars in thousands)
June 30, March 31,
2004 2004
---- ----
(Unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents $ 27,842 $ 30,193
Restricted cash 1,390 390
Accounts receivable, net 22,654 18,957
Inventories 21,935 16,174
Prepaid expenses and other current assets 3,721 2,952
Income taxes receivable 127 127
--------- ---------
Total current assets 77,669 68,793
Property, plant and equipment - net 46,749 44,261
Investment in associates 2 2
Goodwill 478 478
--------- ---------
Total assets $ 124,898 $ 113,534
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 16,876 $ 11,168
Customer deposits and accrued expenses 5,614 4,619
Income taxes payable 232 130
--------- ---------
Total current liabilities 22,722 15,917
--------- ---------
Deferred income tax 15 15
--------- ---------
Minority interests 8,436 7,872
--------- ---------
Shareholders' equity
Common stock
- authorized 30,000,000 shares; issued and
outstanding 9,149,085 shares at June 30,
2004 and 9,149,085 at March 31, 2004 29,980 29,980
Additional paid-in capital 6,970 6,970
Retained earnings 56,775 52,780
--------- ---------
Total shareholders' equity 93,725 89,730
--------- ---------
Total liabilities and shareholders' equity $ 124,898 $ 113,534
========= =========
DESWELL INDUSTRIES, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
(U.S. dollars in thousands)
Quarter ended
June 30,
--------
2004 2003
---- ----
Cash flows from operating activities:
Net income $ 3,995 $ 4,354
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 1,121 1,000
Gain on sale of property, plant and equipment 9 74
Minority interests 716 563
Changes in current assets and liabilities:
Accounts receivable (3,697) (2,906)
Marketable securities - (4,712)
Inventories (5,761) 841
Prepaid expenses and other current assets (769) (3,618)
Income taxes receivable - -
Accounts payable 5,708 1,099
Customer deposits and accrued expenses 995 897
In income taxes payable 102 80
--------- ---------
Net cash provided by operating activities 2,419 7,096
--------- ---------
Cash flows from investing activities
Purchase of property, plant and equipment (3,624) (2,520)
Proceeds from disposal of property, plant and
equipment 6 6
--------- ---------
Net cash used in investing activities (3,618) (2,514)
--------- ---------
Cash flows from financing activities
Common stock issued - 819
Dividends paid to minority shareholders of a
subsidiary (126) -
Contribution from minority shareholders of a
subsidiary (26) -
Increase in restricted cash (1,000) (1)
--------- ---------
Net cash (used in)/provided by financing
activities (1,152) 818
--------- ---------
Net (decrease)/increase in cash and cash
equivalents (2,351) 5,400
Cash and cash equivalents, at beginning of period 30,193 34,400
--------- ---------
Cash and cash equivalents, at end of period 27,842 39,800
========= =========
Supplementary disclosures of cashflow information:
Cash paid during the period for:
Interest - -
Income taxes 29 212
========= =========
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
For and on behalf of
Deswell Industries, Inc.
By: /s/ Richard Lau
-------------------------
Richard Lau
Chief Executive Officer
Date: August 10, 2004