The British Virgin Islands-registered manufacturing company Deswell Industries, Inc. announced in September its financial results for the first quarter of the year ended June 30, 2009. For the reported period, company’s sales made US$22.7mln – a 35.1% decrease compared to the sales in the amount of $35 mln for the same quarter ended June 30, 2008. This may be attributed to the continuing decline in demand from the professional audio and instrument equipment market as well as lower sales at one of BVI company’s subsidiaries.
Also, Deswell Industries reported operating loss during this period in the amount of $0.27 mln, compared to operating income of $1.31 mln for the same quarter of 2008. Net loss for the first quarter ended June 30, 2009 was $0.25 mln – compared to net income of $1.29 mln for the same period of 2008. Net loss per share (both basic and diluted) was $0.02 (net income of $0.08 per share for the quarter ended June 30, 2008).
In the first quarter ended June 30, 2009 total gross margin was 15.8%, compared to 16.8% in the same quarter last year. Gross profit in the plastic segment increased to 20.8% of net sales, while in the first quarter of 2008 it was 15.4%. At the same time, gross margin in the electronic and metallic segment decreased in the period ended June 30, 2009 and made just 10% of net sales compared to 18.6% for the first quarter of 2008.
At the end of the first fiscal quarter, the financial position of the BVI company remained strong, with $29.4 mln cash and cash equivalents at June 30, 2009 compared to $23.1 mln at March 31, 2009. Working capital made $54.3 mln. By the end of this period the BVI company had no long-term or short-term borrowings.