Deswell Industries H1 net income falls 34%
DSWL•Deswell Industries reported fiscal first-half net income of $4.97 million and EPS of $0.31, while sales declined 0.6% year over year to $33.02 million. Gross margin fell as higher labor and material costs weighed on results.
1. First-half results
Deswell Industries' fiscal first-half net income fell 34% to $4.97 million, and EPS was $0.31. Sales declined 0.6% year over year to $33.02 million. The company said higher labor costs and Renminbi appreciation reduced gross margin in both segments.
2. Outlook and costs
Deswell said supply-chain volatility, extended component lead times and limited parts availability may delay new product launches. It cited cautious end-market spending and subdued customer demand, and said it is prioritizing operational efficiency and automation investments to protect margins.
