Deswell(US:DSWL)2025-11-13 15:23Financial Performance - The company's net sales for the six months ended September 30, 2025, were $33,230,000, a decrease of $1,946,000 or 5.5% compared to $35,176,000 in the same period of the previous fiscal year[29]. - Gross profit for the first half of fiscal 2026 was $7,788,000, representing a gross margin of 23.4%, an increase from $6,864,000 or 19.5% in the first half of fiscal 2025[32]. - The electronic segment reported operating income of $3,887,000 for the six months ended September 30, 2025, compared to $2,979,000 in the same period of fiscal 2025, driven by an increase in gross margin[44]. - Net income for the company was $7,519,000 for the six months ended September 30, 2025, compared to $6,185,000 for the same period in the previous fiscal year[48]. - Non-operating income increased to $5,172,000 for the six months ended September 30, 2025, compared to $4,646,000 in the prior year period[45]. Working Capital and Liquidity - The company had working capital of $85,064,000 as of September 30, 2025, an increase from $78,771,000 at March 31, 2025[51]. - Cash and cash equivalents were $23,382,000 as of September 30, 2025, compared to $13,438,000 as of September 30, 2024[52]. - The company had no short-term or long-term borrowings as of September 30, 2025, indicating strong liquidity[51]. Expenses - SG&A expenses for the six months ended September 30, 2025, were $5,432,000 or 16.3% of total net sales, up from $5,404,000 or 15.4% in the same period of the previous year[35]. Segment Performance - The plastic segment's gross profit decreased to $913,000 or 18.3% of net sales, down from $1,126,000 or 19.5% in the prior fiscal year[33].