Deswell Industries announced its financial results for the fiscal fourth quarter ended March 31, 2016. Net sales were $8.4 million, an increase of 3.5% compared to net sales of $8.1 million for the same quarter ended March 31, 2015.
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Net sales decreased by 9.7% to $4.1 million in Deswell’s plastic segment and increased by 20.3% to $4.3 million in the electronic segment. The operating loss in the fourth quarter was $1.8 million, compared to an operating loss of $0.7 million for the same quarter of fiscal 2015.
Total gross margin increased to 15.1% in the fourth quarter ended March 31, 2016 compared to 11.5% in the same quarter last year. Gross profit margin in the plastic segment increased to 25.6% of net sales for the fourth quarter of fiscal 2016 compared to 22.8% of net sales for the same quarter of last fiscal year.
The increase in gross profit and margin in the plastic segment was mainly due to a decrease in factory overheads as a percentage of sales offsetting an increase in raw materials cost.
The improvement in gross profit and margin in the electronic segment was mainly attributed to decreases in labor cost and factory overheads as a percentage of sales, offsetting an increase in raw materials cost.
Deswell reported a net loss of $1.2 million for the fourth quarter ended March 31, 2016 compared to a net income of $0.01 million for the quarter ended March 31, 2015.
Deswell reported basic and diluted loss per share of ($0.072) for the fourth quarter of fiscal 2016 (based on 16,056,000 and 16,056,000 weighted average shares outstanding, respectively), compared to basic and diluted income per share of $0.001 (based on 16,056,000 and 16,056,000 weighted average shares outstanding, respectively), for the quarter ended March 31, 2015.
Net sales for the year ended March 31, 2016 were $44.6 million, an increase of 17.0%, compared to sales of $38.1 million for the corresponding period in fiscal 2015.
Operating loss for the year ended March 31, 2016 was $5.3 million, compared to operating loss of $5.1 million for fiscal 2015. Deswell reported a net loss of $4.9 million in fiscal 2016, compared to net loss of $2.8 million for the year ended March 31, 2015.
Deswell reported basic and diluted net loss per share of ($0.31) for fiscal 2016, (based on 16,056,000 and 16,056,000 weighted average share outstanding, respectively), compared to basic and diluted loss per share of ($0.17) (based on 16,056,000 and 16,056,000 weighted average shares outstanding, respectively), for the prior fiscal year.
Deswell's balance sheet remained strong at the end of the fourth quarter of fiscal 2016, with $12.0 million in cash and cash equivalents at March 31, 2016 compared to $14.3 million at March 31, 2015.
Working capital totaled $39.9 million as of March 31, 2016, versus $45.9 million as of March 31, 2015. Furthermore, Deswell has no long-term or short-term borrowings as of March 31, 2016. ■