Document and Entity Information
Document and Entity Information | 12 Months Ended |
Mar. 31, 2019shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | DESWELL INDUSTRIES INC |
Entity Central Index Key | 0000946936 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Current Fiscal Year End Date | --03-31 |
Entity Filer Category | Non-accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Well-Known Seasoned Issuer | No |
Entity Common Stock, Shares Outstanding | 15,885,239 |
Document Type | 20-F |
Document Period End Date | Mar. 31, 2019 |
Amendment Flag | false |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Interactive Data Current | Yes |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 14,371 | $ 15,192 |
Time deposits maturing over three months | 371 | 2,190 |
Time deposits maturing over twelve months - current portion | 3,129 | |
Marketable securities (note 3) | 24,446 | 17,282 |
Accounts receivable, less allowances for doubtful accounts of $270 and $658 at March 31, 2018 and 2019, respectively | 15,734 | 15,912 |
Inventories (note 4) | 13,030 | 12,933 |
Prepaid expenses and other current assets (note 5) | 2,006 | 2,267 |
Total current assets | 69,958 | 68,905 |
Property, plant and equipment, net (note 6) | 30,211 | 31,494 |
Goodwill (note 2) | ||
Total assets | 100,169 | 100,399 |
Current liabilities: | ||
Accounts payable | 6,253 | 8,596 |
Accrued payroll and employee benefits | 5,676 | 5,566 |
Customer deposits | 1,298 | 1,707 |
Other accrued liabilities (note 7) | 1,662 | 1,873 |
Income taxes payable | 657 | 603 |
Total current liabilities | 15,546 | 18,345 |
Deferred income tax liabilities (note 8) | 659 | 775 |
Total liabilities | 16,205 | 19,120 |
Commitments and contingencies (note 9) | ||
Shareholders' equity: | ||
Common shares nil par value; authorized 30,000,000 shares; 17,031,810 shares issued as of March 31, 2018 and 2019; 15,885,239 shares outstanding as of March 31, 2018 and 2019 | 53,063 | 53,063 |
Treasury stock at cost; 1,146,571 and 1,146,571 shares as of March 31, 2018 and 2019 (note 12) | (2,821) | (2,821) |
Additional paid-in capital | 8,005 | 8,005 |
Accumulated other comprehensive income | 5,316 | 5,316 |
Retained earnings | 20,401 | 17,716 |
Total shareholders' equity | 83,964 | 81,279 |
Total liabilities and shareholders' equity | $ 100,169 | $ 100,399 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowances for doubtful accounts | $ 658 | $ 270 |
Common shares, no par value | $ 0 | $ 0 |
Common shares, authorized | 30,000,000 | 30,000,000 |
Common shares, issued | 17,031,810 | 17,031,810 |
Common shares, outstanding | 15,885,239 | 15,885,239 |
Treasury stock, at cost | 1,146,571 | 1,146,571 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 66,581 | $ 60,667 | $ 44,522 |
Cost of sales | 56,311 | 50,953 | 37,073 |
Gross profit | 10,270 | 9,714 | 7,449 |
Selling, general and administrative expenses | 9,459 | 8,806 | 8,856 |
Other (expenses) income, net | (278) | 894 | (696) |
Operating (loss) income | 533 | 1,802 | (2,103) |
Non-operating income, net | 3,884 | 4,395 | 3,688 |
Income, before income taxes | 4,417 | 6,197 | 1,585 |
Income taxes | 144 | 7 | 209 |
Net income attribute to Deswell Industries, Inc. | 4,273 | 6,190 | 1,376 |
Other comprehensive income (loss) | |||
Unrealized loss on available-for-sale securities | (3) | ||
Reclassification adjustment in connection with loss on disposal of available-for-sale securities transferred to profit or loss | 14 | ||
Total comprehensive income attributable to Deswell Industries, Inc. | $ 4,273 | $ 6,190 | $ 1,387 |
Basic: | |||
Net income per share | $ 0.27 | $ 0.39 | $ 0.09 |
Weighted average common shares outstanding (shares in thousands) | 15,885 | 15,885 | 16,035 |
Diluted: | |||
Net income per share | $ 0.27 | $ 0.39 | $ 0.09 |
Weighted average common shares outstanding (shares in thousands) | 16,059 | 15,985 | 16,035 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income [Member] | Retained Earnings [Member] | Total |
Balance at Mar. 31, 2016 | $ 53,063 | $ (2,513) | $ 8,005 | $ 5,305 | $ 12,948 | $ 76,808 |
Balance (in shares) at Mar. 31, 2016 | 17,031,810 | |||||
Balance (in shares) at Mar. 31, 2016 | (975,571) | |||||
Unrealized loss on available-for-sale securities | (3) | (3) | ||||
Reclassification adjustment in connection with loss on disposal of available-for-sale securities transferred to profit or loss | 14 | 14 | ||||
Repurchase of common stock, value | $ (308) | $ (308) | ||||
Repurchase of common stock, shares | (171,000) | (171,000) | ||||
Net income | 1,376 | $ 1,376 | ||||
Dividends ($0.14, $0.105, $0.07 and $0.1 per share for March 31, 2016, March 31, 2017, March 31, 2018 and March 31, 2019 respectively) | (1,686) | (1,686) | ||||
Balance at Mar. 31, 2017 | $ 53,063 | $ (2,821) | 8,005 | 5,316 | 12,638 | $ 76,201 |
Balance (in shares) at Mar. 31, 2017 | 17,031,810 | |||||
Balance (in shares) at Mar. 31, 2017 | (1,146,571) | (1,146,571) | ||||
Unrealized loss on available-for-sale securities | ||||||
Reclassification adjustment in connection with loss on disposal of available-for-sale securities transferred to profit or loss | ||||||
Net income | 6,190 | 6,190 | ||||
Dividends ($0.14, $0.105, $0.07 and $0.1 per share for March 31, 2016, March 31, 2017, March 31, 2018 and March 31, 2019 respectively) | (1,112) | (1,112) | ||||
Balance at Mar. 31, 2018 | $ 53,063 | $ (2,821) | 8,005 | 5,316 | 17,716 | $ 81,279 |
Balance (in shares) at Mar. 31, 2018 | 17,031,810 | |||||
Balance (in shares) at Mar. 31, 2018 | (1,146,571) | (1,146,571) | ||||
Unrealized loss on available-for-sale securities | ||||||
Reclassification adjustment in connection with loss on disposal of available-for-sale securities transferred to profit or loss | ||||||
Net income | 4,273 | 4,273 | ||||
Dividends ($0.14, $0.105, $0.07 and $0.1 per share for March 31, 2016, March 31, 2017, March 31, 2018 and March 31, 2019 respectively) | (1,588) | (1,588) | ||||
Balance at Mar. 31, 2019 | $ 53,063 | $ (2,821) | $ 8,005 | $ 5,316 | $ 20,401 | $ 83,964 |
Balance (in shares) at Mar. 31, 2019 | 17,031,810 | |||||
Balance (in shares) at Mar. 31, 2019 | (1,146,571) | (1,146,571) |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends | $ .1 | $ 0.07 | $ 0.105 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities | |||
Net income | $ 4,273 | $ 6,190 | $ 1,376 |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 2,114 | 2,138 | 2,135 |
Provision for (reversal of) doubtful accounts, net | 403 | (674) | 371 |
(Usage) additional charges for obsolescence allowance of inventories, net | 256 | 296 | (65) |
Loss on disposal of property, plant and equipment | 22 | 61 | 162 |
Unrealized holding gain on marketable securities | (891) | (1,401) | (1,999) |
Gain on sales of marketable securities | (746) | (609) | (69) |
Loss on disposal of available-for-sale securities | 14 | ||
Deferred income tax | (116) | (114) | 64 |
Scrip dividend received | (33) | (168) | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (225) | (2,079) | (4,322) |
Inventories | (353) | (2,541) | (2,509) |
Prepaid expenses and other current assets | 261 | 152 | (761) |
Accounts payable | (2,343) | 3,444 | 2,924 |
Accrued payroll and employee benefits | 110 | 923 | 608 |
Customer deposits | (409) | (445) | 729 |
Other accrued liabilities | (211) | 399 | 185 |
Income taxes payable | 54 | 127 | 75 |
Net cash (used in) provided by operating activities | 2,166 | 5,699 | (1,082) |
Cash flows from investing activities | |||
Purchase of property, plant and equipment | (878) | (1,707) | (2,152) |
Proceeds from sale of property, plant and equipment, net of transaction costs | 25 | 6 | 993 |
Purchase of marketable securities | (12,704) | (5,357) | (3,159) |
Proceeds from sales of marketable securities | 7,210 | 6,580 | 920 |
Proceeds from disposal of available-for-sale securities | 1,600 | ||
Release of (increase in) fixed deposits maturing over three months | 1,819 | 3,232 | (146) |
(Increase in) decrease in fixed deposits maturing over twelve months | 3,129 | (227) | 1,664 |
Net cash (used in) provided by investing activities | (1,399) | 2,527 | (280) |
Cash flows from financing activities | |||
Dividends paid | (1,588) | (1,112) | (2,248) |
Repurchase of common stock | (308) | ||
Net cash used in financing activities | (1,588) | (1,112) | (2,556) |
Net (decrease) increase in cash and cash equivalents | (821) | 7,114 | (3,918) |
Cash and cash equivalents, beginning of year | 15,192 | 8,078 | 11,996 |
Cash and cash equivalents, end of year | 14,371 | 15,192 | 8,078 |
Cash paid during the year for: | |||
Interest | |||
Income taxes | $ 149 | $ 85 | $ 21 |
Organization and Basis of Finan
Organization and Basis of Financial Statements | 12 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Financial Statements | 1. Organization and Basis of Financial Statements Deswell Industries, Inc. was incorporated in the British Virgin Islands on December 2, 1993. The principal activities of the Company comprise the manufacturing and sales of injection-molded plastic parts and components and electronic products assembling. The manufacturing activities are subcontracted to subsidiaries operating in the People's Republic of China (“PRC”). The selling and administrative activities were originally performed in the Hong Kong Special Administrative Region ("Hong Kong") of the PRC. From August 2003, these activities were moved to the Macao Special Administrative Region (“Macao”) of the PRC. As the Company is a holding company, the amount of any dividends to be declared by the Company will be dependent upon the amount which can be distributed from its subsidiaries. Dividends from subsidiaries are declared based on profits as reported in their statutory accounts. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of consolidation Goodwill Cash and cash equivalents Marketable securities - Available-for-sales securities - I nventories - Inventories are stated at the lower of cost or market. Cost is determined on the weighted average basis. Work-in-progress and finished goods inventories consist of raw materials, direct labor and overhead associated with the manufacturing process. The Company periodically performs an analysis of inventory to determine obsolete or slow-moving inventory and determine if its cost exceeds the estimated market value. Write down of potentially obsolete or slow-moving inventory are recorded based on management’s analysis of inventory levels. Property, plant and equipment Leasehold land and buildings 30 - 50 years Plant and machinery 5 - 15 years Furniture, fixtures and equipment 4 - 5 years Motor vehicles 3 - 5 years Leasehold improvements 2 - 5 years Leases For the lessee, a capital lease is accounted for as if there was an acquisition of an asset and an incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases. The total rental payments made under the leases are recognized in the consolidated statement of comprehensive income (loss) as incurred. For the lessor, a capital lease is accounted for as sale-type lease, direct financing lease or leveraged lease. All other leases are accounted for as operating leases. Revenues are recorded to statement of comprehensive income (loss) on a straight-line basis over the term of the lease. The Company has no capital leases as a lessee or lessor for any of the periods presented. Impairment of long-lived assets Revenue recognition Effective April 1, 2018, the Company adopted the new guidance of ASC Topic 606, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition. Topic 606 requires the Company to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company applies the following steps to recognize revenues: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the Company satisfies a performance obligation. Products sales The Company recognizes revenue upon transfer of control of its products to the customer, which typically occurs upon delivery. The Company’s main performance obligation to its customers is the delivery of products in accordance with purchase orders. Each purchase order defines the transaction price for the products purchased under the arrangement. Acceptance of delivery of the products is evidenced by goods receipt notes signed by the customer. The Company has no remaining obligations after the customer’s acceptance of the products. Under the terms of the contracts or purchase orders between the Company and the customer, the control of the products is transferred to the customer upon the signing of the goods receipt notes and the customer has no rights to return the products (other than for defective products). Some customers examine and pick up the products at our plant while some local customers instruct us to deliver the products to their plants nearby. Some overseas customers instruct us to deliver the products to the named port of shipment. Delivery of the products occurs at that point of time when the control of the products is transferred to the customer. The selling price, which is specified in the purchase orders, is fixed. Under the terms of the purchase orders, upon the sale of the products to the customer and the signing of the good receipts notes, the Company has the legally enforceable right to receive full payment of the sales price. The customer’s obligation to pay the Company is not dependent on the customer selling the products or collecting cash from their customers (or end customers). The customer is required to pay under normal sales terms. The Company’s normal payment terms range from 30 days to 90 days and its sales arrangements do not have any material financing components. In addition, the Company’s customer arrangements do not produce contract assets or liabilities that are material to its consolidated financial statements. The Company permits the return of damaged or defective products and accounts for these actual returns as deduction from sales. Product returns to the Company were insignificant during past years. Costs to obtain a contract and incremental costs to fulfill the Company’s customer arrangements are expensed as incurred, as the amortization period is less than one year. The Company’s sales are net of value added tax (“VAT”) and business tax and surcharges collected on behalf of tax authorities in respect of product sales. VAT and business tax and surcharges collected from customers, net of VAT paid for purchases, is recorded as a liability in the consolidated balance sheets until it is paid to the tax authorities. Outbound freight and Handling costs: The company accounts for product outbound freight and handling costs as fulfillment activities and present the associated costs in selling expenses in the period in which it sells the product. Disaggregation of Revenues: The following table disaggregates product sales by business segment by geography which provides information as to the major source of revenue. See Note 16 for additional description of our reportable business segments. Year ended March 31, 2019 Injection molded Electronic Total Net sales United States of America $1,504 $11,358 $12,862 PRC 25,637 5,135 30,772 United Kingdom 255 3,331 3,586 Hong Kong 1,195 3,531 4,726 Europe 188 7,998 8,186 Others - 6,449 6,449 Total net sales $28,779 $37,802 $66,581 Other omprehensive income - Allowance for doubtful account Year ended March 31, Allowance for doubtful accounts 2017 2018 2019 Balance at beginning of the year $881 $1,252 $270 Provision for the year 420 34 419 Bad debt recovery (49) (708) (16) Written off - (308) (15) $1,252 $270 $658 The provision and the bad debt recovery for the years were charged to other income (expenses) in consolidated statements of comprehensive income. Shipping and handling cost - Income taxes The Company adopted the provisions of ASC No. 740 “Income Taxes” (“ASC 740”), which clarifies the accounting for uncertainty in income taxes recognized by prescribing a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides accounting guidance on de-recognition, classification, interest and penalties, disclosure and transition. Foreign currency translation All transactions in currencies other than functional currencies during the year are translated at the exchange rates prevailing on the transaction dates. Monetary items existing at the balance sheet date denominated in currencies other than the functional currencies are translated at period end rates. Gains and losses resulting from the translation of foreign currency transactions and balances are included in the consolidated statement of comprehensive income (loss). The exchange rates between the Hong Kong dollars and the U.S. dollar were approximately 7.7904, 7.7904 and 7.7904 as of March 31, 2017, 2018 and 2019, respectively. The exchange rates between the Chinese Renminbi and the U.S. dollar were approximately 6.8915, 6.3916 and 6.7472 as of March 31, 2017, 2018 and 2019, respectively. Aggregate net foreign currency transaction gain included in other income were, $(361), $(56) and $(82) for the years ended March 31, 2017, 2018 and 2019, respectively. Post-retirement and post-employment benefits Stock-based compensation There were no stock options granted during the year ended March 31, 2017, 2018 and 2019. Net income per share Basic net income per share and diluted net income per share calculated in accordance with ASC No. 260, “Earnings Per Share”, are reconciled as follows (shares in thousands): Year ended March 31, 2017 2018 2019 Net income attributable to Deswell Industries, Inc. $1,376 $6,190 $4,273 Basic weighted average common shares outstanding 15,885 15,885 Basic net income per share $0.09 $0.39 $0.27 Year ended March 31, 2017 2018 2019 Basic weighted average common shares outstanding 16,035 15,885 15,885 Effect of dilutive securities – Options - 100 174 Diluted weighted average common and potential common shares outstanding 16,035 15,985 16,059 Diluted net income per share $0.09 $0.39 $0.27 For the years ended March 31, 2017, potential common shares of 532,000 shares related to stock options are excluded from the computation of diluted net income per share as their exercise prices were higher than the average market price. Use of estimates - Fair value of financial instruments - Fair value measurements - It establishes a three-level valuation hierarchy of valuation techniques based on observable and unobservable inputs, which may be used to measure fair value and include the following: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as certain securities that are highly liquid and are actively traded in over-the-counter markets. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques based on significant unobservable inputs, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. Non-recurring fair value measurements Fair value of long-lived assets, including real estate, are determined by estimating the amount and timing of net future cash flows (which are unobservable inputs) and discounting them using a risk-adjusted rate of interest. The Company estimates future cash flows based on its experience and knowledge of the market. Significant increases or decreases in actual cash flows may result in valuation changes. For real estate, fair values are based on discounted cash flow estimates which reflect current and projected lease profiles and available industry information about capitalization rates and expected trends in rents and occupancy and are corroborated by external appraisals. Recent changes in accounting standards In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). The amendments in this update create Topic 842, Leases, and supersede the leases requirements in Topic 840, Leases. Topic 842 specifies the accounting for leases. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. The main difference between Topic 842 and Topic 840 is the recognition of lease assets and lease liabilities for those leases classified as operating leases under Topic 840. Topic 842 retains a distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous leases guidance. The result of retaining a distinction between finance leases and operating leases is that under the lessee accounting model in Topic 842, the effect of leases in the statement of comprehensive income and the statement of cash flows is largely unchanged from previous GAAP. The amendments in ASU 2016-02 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years for public business entities. Early application of the amendments in ASU 2016-02 is permitted. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) (“ASU 2018-13”), which eliminates, adds and modifies certain disclosure requirements for fair value measurements. The modified standard eliminates the requirement to disclose changes in unrealized gains and losses included in earnings for recurring Level 3 fair value measurements and requires changes in unrealized gains and losses be included in other comprehensive income for recurring Level 3 fair value measurements of instruments. The standard also requires the disclosure of the range and weighted average used to develop significant unobservable inputs and how weighted average is calculate for recurring and nonrecurring Level 3 fair value measurements. The amendment is effective for fiscal years beginning after December 15, 2019 and interim periods within that fiscal year with early adoption permitted. We are currently evaluating the impact of the adoption of ASU 2018-13 on our consolidated financial statements. |
Marketable Securities
Marketable Securities | 12 Months Ended |
Mar. 31, 2019 | |
Marketable Securities [Abstract] | |
Marketable Securities | 3. Marketable Securities The Company acquired equity securities listed in Hong Kong and Australian Securities Exchange. March 31, 2018 2019 Cost $15,473 $21,746 Market value $17,282 $24,446 Unrealized gain for the years ended March 31, 2017, 2018 and 2019 were $1,999, $1,401 and $891, respectively. Net proceeds from sale of marketable securities for the years ended March 31, 2017, 2018 and 2019 were $920, $6,580 and $7,210 respectively and realized gain from sales of marketable securities for the years ended March 31, 2017, 2018 and 2019 were $69, $609 and $746, respectively. For the purposes of determining realized gains and losses, the cost of securities sold was determined based on the average cost method. The marketable securities were classified as Level 1 of the hierarchy established under ASC No. 820 because the valuations were based on quoted prices for identical securities in active markets. |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories Inventories, net of allowances, by major categories are summarized as follows: March 31, 2018 2019 Raw materials $6,961 $7,020 Work-in-progress 3,698 3,884 Finished goods 2,274 2,126 $12,933 $13,030 Obsolescence allowance for inventory is as follows: Year ended March 31 2017 2018 2019 Balance at beginning of the year $3,635 $3,570 $3,634 (Usage) additional charges, net (65) 296 256 Written off - (232) - Balance at the end of the year $3,570 $3,634 $3,890 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Mar. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | 5. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following: March 31, 2018 2019 Value added tax recoverable $419 $322 Rental and utility deposit 19 20 Advance to suppliers 243 220 Prepayment 520 526 Coupon and dividend receivable 176 109 Others 890 809 $2,267 $2,006 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 6. Property, Plant and Equipment Property, plant and equipment consist of the following: March 31, 2018 2019 At cost: Leasehold land and buildings $32,233 $32,233 Plant and machinery 39,424 38,839 Furniture, fixtures and equipment 11,559 11,642 Motor vehicles 1,540 1,513 Leasehold improvements 3,737 3,832 Impairment (3,183) (3,093) 85,310 84,966 Less: accumulated depreciation and amortization (53,816) (54,755) Net book value $31,494 $30,211 Included in furniture, fixtures and equipment is computer software with net values of $26 and $26 as of March 31, 2018 and 2019, respectively. Cost of leasehold land and buildings consist of the following: March 31, 2018 2019 Land use right of state-owned land and buildings erected thereon (a) $28,077 $28,077 Long term leased land and buildings erected thereon (b) 4,156 4,156 $32,233 $32,233 (a) The land use rights of state-owned land and buildings erected thereon represent land and buildings located in the PRC on which an upfront lump-sum payment has been made for the right to use the land and building with lease terms of 50 years expiring in 2050. (b) Long term leased land and buildings erected thereon represent land and buildings on collectively-owned land located in the PRC on which an upfront lump-sum payment has been made for the right to use the land and building for a term of 50 years to 2053. Dongguan Chang An Xiaobian District Co-operation, the lessor, is the entity to whom the collectively-owned land has been granted. According to existing PRC laws and regulations, collectively-owned land is not freely transferable unless certain application and approval procedures are fulfilled by the Dongguan Chang An Xiaobian District Co-operation to change the legal form of the land from collectively-owned to state-owned. As of March 31, 2019, the Company is not aware of any steps being taken by the Dongguan Chang An Xiaobian District Co-operation for such application. Included in leasehold land and buildings is property on lease with net values of $6,409 and $6,224 as of March 31, 2018 and 2019, respectively. Details of the property on lease are as follows: Included in leasehold land and buildings March 31, 2018 2019 Cost $8,831 $8,831 Less: accumulated depreciation and amortization (2,422) (2,607) Net book value $6,409 $6,224 During the years ended March 31, 2017, 2018 and 2019, the Company had no impairment on its property, plant and equipment. Depreciation of property, plant and equipment were $2,135, $2,138 and $2,114 during the years ended March 31, 2017, 2018 and 2019, respectively. |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Mar. 31, 2019 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Other Accrued Liabilities | 7. Other Accrued Liabilities Other accrued liabilities consist of the following: March 31, 2018 2019 Accrued expenses $620 $541 Others 1,253 1,121 $1,873 $1,662 |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes Net income before taxes of $1,585, $6,197 and $4,417 were solely attributed by non-U.S. for the years ended March 31, 2017, 2018 and 2019, respectively. Under the current BVI law, the Company’s income is not subject to taxation. Subsidiaries operating in Hong Kong and the PRC are subject to income taxes as described below, and the subsidiaries operating in Macao are exempted from income taxes. Under the current Samoa Law, subsidiary incorporated in Samoa is not subject to profit tax as it has no business operations in Samoa. The provision for current income taxes of the subsidiaries operating in Hong Kong has been calculated by applying the current rate of taxation of 16.5% (2017: 16.5%, 2018: 16.5%) to the estimated taxable income arising in or derived from Hong Kong, if applicable. In accordance w ith the effect of the PRC Income Tax Law, the standard income tax rate for all subsidiaries operating in the PRC is 25%. The provision for income taxes consists of the following: Year ended March 31, 2017 2018 2019 Current tax - PRC $116 $173 $236 Deferred tax - PRC 93 (166) (92) $209 $7 $144 Reconciliation between the provision for income taxes computed by applying the statutory tax rate in the PRC to income before income taxes and the actual provision for income taxes is as follows: Year ended March 31, 2017 2018 2019 Provision for income taxes at statutory tax rate in the PRC $396 $1,549 $1,105 Tax rate differential on entities not subject to PRC income tax (128) (797) (284) Effect of income for which no income tax is chargeable (666) (757) (791) Effect of expense for which no income tax is deductible 1,395 207 142 Net change in valuation allowances (788) (195) (22) Over provision of income tax is previous years - - (6) Effective tax $209 $7 144 The net deferred income tax consists of the following: March 31, 2018 2019 Deferred income tax assets $- $- Deferred income tax liabilities (775) (659) Net deferred income tax liabilities $(775) (659) The components of net deferred income tax are as follows: March 31, 2018 2019 Net operating loss carry forwards $- $- Provision of employee benefits 539 582 Depreciation and amortization (128) 85 Revenue and cost of sales recognized for financial reporting purpose before being recognized for tax purpose (1,333) (1,277) Others 328 110 Less: Valuation allowances (181) (159) Net deferred income tax liabilities $(775) (659) The Company operates through the PRC entities and the valuation allowance is considered on each individual basis. The Company’s assessment is that it is not more likely than not that these deferred tax assets will be realized. The net operating loss attributable to those PRC entities can only be carried forward for a maximum period of five years. Tax losses of non-PRC entities can be carried forward indefinitely. Under the PRC Income Tax Law and the implementation rules, profits of the PRC entities earned on or after January 1, 2008 and distributed by the PRC entities to the Company are subject to a withholding tax at a rate of 10%, unless the Company will be deemed as a resident enterprise for tax purposes. Since the Company intends to reinvest the earnings of the PRC entities in operations in the PRC, the PRC entities do not intend to declare dividends to their immediate non-PRC established holding companies in the foreseeable future. Accordingly, no deferred taxation on undistributed earnings of the PRC entities has been recognized as of March 31, 2019. The Company has adopted the provisions of ASC 740 on April 1, 2007. The evaluation of a tax position in accordance with ASC 740 begins with a determination as to whether it is more-likely-than-not that a tax position will be sustained upon examination based on the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is then measured at the largest amount of benefit that if greater than 50 percent likely of being realized upon ultimate settlement for recognition in the financial statements. The Company classifies interest and/or penalties related to unrecognized tax benefits as a component of income tax provisions; however, as of March 31, 2018 and 2019, there is no interest and penalties related to uncertain tax positions. A reconciliation of the beginning and ending amount of total unrecognized tax benefits is as follows: Year ended March 31, 2017 2018 2019 Balance at the beginning of the year $268 $316 $424 Increase related to current year tax positions 48 108 58 Balance at the end of the year $316 $424 $482 At March 31, 2018 and 2019, there are $424 and $482 of unrecognized tax benefits that if recognized, would affect the annual effective tax rate. For the year ended March 31, 2017, 2018 and 2019, the Company did not recognize any interest and penalties related to unrecognized tax benefits. The unrecognized tax benefits represent the estimated income tax expenses the Company would be required to pay, should the income tax rate used, taxable income and deductible expenses for tax purpose recognized in accordance with tax laws and regulations. The Company is currently unable to provide an estimate of a range of the total amount of unrecognized tax benefits that is reasonably possible to change significantly within the next twelve months According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or its withholding agent. The statute of limitations extends to five years under special circumstances, which are not clearly defined. In the case of a related party transaction, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion. In accordance with Guo Shui Fa [2009] No.2, the PRC tax authorities have the right to deem the Company for a tax amount based on the transfer pricing contemporaneous documentations (the “Contemporaneous Documentations”) or a basis that they considered reasonable. The amount of income taxes payable at March 31, 2018 and 2019 includes the deemed profit tax estimated by the management based on the Contemporaneous Documentations. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies The Company leases premises under various operating leases, certain of which contain escalation clauses. Rental expenses under operating leases included in the consolidated statements of comprehensive income were $62, $68 and 72 for the years ended March 31, 2017, 2018 and 2019, respectively. At March 31, 2019, the Company was obligated under operating leases requiring minimum rentals as follows: Year ending March 31, 2020 $53 Year ending March 31, 2021 4 Total minimum lease payments $57 We have non-cancellable agreements to lease our factory buildings to tenants under operating lease, which provide for payments through 2019. At March 31, 2019, the minimum future rental income to be received is as follows: Year ending March 31, 2020 $1,291 Year ending March 31, 2021 274 Year ending March 31, 2022 6 Total minimum future rental income $1,571 At March 31, 2019, the Company had capital commitments for purchase of plant and machinery, and leasehold improvement totaling $235, which are expected to be disbursed during the year ending March 31, 2021. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefits | 10. Employee Benefits The Company contributes to a state pension scheme run by the Chinese government in respect of its employees in the PRC. The expense of $604, $800 and $751 included in the consolidated statements of comprehensive income related to this plan, which is calculated at the range of 8% to 14% of the average monthly salary, was provided for the years ended March 31, 2017, 2018 and 2019, respectively. |
Stock Option Plan
Stock Option Plan | 12 Months Ended |
Mar. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Option Plan | 11. Stock Option Plan On March 15, 1995, the Company adopted 1995 Stock Option Plan that permits the Company to grant options to officers, directors, employees and others to purchase up to 1,012,500 shares of Common Stock. On September 29, 1997, the Company approved an increase of 549,000 shares making a total of 1,561,500 shares of common stock available under the stock option plan. On January 7, 2002, the Company adopted 2001 Stock Option Plan to purchase an additional 1,125,000 shares of Common Stock. On September 30, 2003, the Company adopted 2003 Stock Option Plan to purchase an additional 900,000 shares of Common Stock. On September 19, 2005, the Company’s shareholders approved an increase of 500,000 shares making a total of 1,400,000 shares of common stock available under the 2003 Stock Option Plan. On August 17, 2007, the Company’s Board of Directors, subject to shareholders’ approval, approved an increase of 400,000 shares making a total of 1,800,000 shares of common stock available under the 2003 Stock Option Plan. The Company’s shareholders approved this amendment at the Company’s Annual Shareholders’ Meeting held on October 9, 2007. On August 13, 2010, the Company’s Board of Directors, subject to shareholders’ approval, approved an increase of 800,000 shares making a total of 2,600,000 shares of common stock available under the 2003 Stock Option Plan. The Company’s shareholders approved this amendment at the Company’s Annual Shareholders’ Meeting held on September 16, 2010. On August 7, 2013, the Company’s Board of Directors, subject to shareholder approval, approved amendments to the 2003 Stock Option Plan to increase by 900,000 shares the number of shares that can be optioned and sold under the 2003 Stock Option Plan, bringing to a total of 3,500,000 shares the number of common shares that can be optioned and sold under the 2003 Stock Option Plan. The Company’s shareholders approved this amendment at the Company’s Annual shareholders’ Meeting held on September 11, 2013. As of March 31, 2019, options to purchase an aggregate of 5,669,000 common shares had been granted under the stock option plans. Options granted under the stock option plans vest immediately and are exercisable for a period of up to 10 years commencing on the date of grant, at a price equal to at least the fair market value of the Common Stock at the date of grant, and may contain such other terms as the Board of Directors or a committee appointed to administer the plan may determine. A summary of the option activity (with weighted average prices per option) is as follows: Year ended March 31, 2017 2018 2019 Number of stock options Weighted average exercise price Number of stock options Weighted average exercise price Number of stock options Weighted average exercise price Outstanding at beginning of the year 532,000 $2.1 532,000 $2.1 506,000 $2.1 Cancelled during the year - - (26,000) $2.1 (6,000) $2.09 Outstanding and exercisable at the end of the year 532,000 $2.1 506,000 $2.1 500,000 $2.1 Range of exercise price per share $2.09 to $2.14 $2.09 to $2.14 $2.09 to $2.14 No options were granted or exercised for the years ended March 31, 2017, 2018 and 2019. The weighted average remaining contractual life of the share options outstanding at March 31, 2019 was 4.8 years. At March 31, 2018 and 2019, there were 1,262,000 and 1,268,000 options available for future grant under the plans, respectively. |
Repurchase of Stock
Repurchase of Stock | 12 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Repurchase of Stock | 12. Repurchase of stock On March 14, 2012, the Company’s Board of Directors authorized a stock buyback plan to repurchase up to an aggregate of $4,000 of its issued and outstanding common shares in compliance with the requirements of Rule 10b5-1 and Rule 10b-18 under the Securities Exchange Act of 1934 during the next two years. The program does not obligate the Company to acquire any particular number or dollar amount of its common shares and may be suspended, modified, extended or discontinued at any time. No assurance can be given that any particular number or dollar amount of common stock will be repurchased. By the ended March 31, 2014, 975,571 common shares had been repurchased under the stock buyback plan for a total consideration of $2,513 at an average price of $2.57 per share. During the year ended March 31, 2017, the Company repurchased 171,000 shares from Mr. Franki Tse Shing Fung, the former CEO of the Company, for a total consideration of $308 at a price of $1.80 per share. |
Other (expenses) income, net
Other (expenses) income, net | 12 Months Ended |
Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other (expenses) income, net | 13. Other (expenses) income, net Other (expenses) income, net consist of the following: Year ended March 31, 2017 2018 2019 Loss on disposal of property, plant and equipment, net $(162) $(61) $(22) Exchange loss, net (361) (56) (82) (Provision for) reversal of doubtful accounts, net (371) 674 (403) Others 198 337 229 Other (expenses) income, net $(696) $894 $(278) |
Non-operating income, net
Non-operating income, net | 12 Months Ended |
Mar. 31, 2019 | |
Other Income, Nonoperating [Abstract] | |
Non-operating income, net | 14. Non-operating income, net Non-operating income, net consist of the following: Year ended March 31, 2017 2018 2019 Dividend income from marketable securities $616 $859 $738 Interest income from available-for-sales securities 5 - - Interest income from bank deposits 314 267 184 Unrealized gain from marketable securities 1,999 1,401 891 Realized gain from sales of marketable securities 69 609 746 Rental income 839 1,111 1,455 Others (154) 148 (130) Non-operating income, net $3,688 $4,395 $3,884 |
Operating Risk
Operating Risk | 12 Months Ended |
Mar. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Operating Risk | 15. Operating Risk Concentrations of Credit Risk and Major Customers Percentage of net sales Year ended March 31, 2017 2018 2019 Customer A 12.8% 10.8% * Customer B 10.6% *% 11.5% Customer C 10.2% 10.8% * Customer D * 12.8% 12.5% Customer E * 11.9% 11.1% * Less than 10% Sales to the above customers relate to both injection-molded plastic parts and electronic products. Debtors accounting for 10% or more of total accounts receivable at March 31, 2018 and 2019, respectively, are as follows: Percentage of accounts receivable at March 31, 2018 2019 Customer A 15.5% 14.4% Customer C * 10.8% Customer D 21.0% 26.0% Customer E 12.9% * * Less than 10% There were $nil, $308 and $15 accounts receivable written off during the years ended March 31, 2017, 2018 and 2019, respectively. There were net provision for (reversal of) doubtful accounts of $371, $(674) and 403 during the years ended March 31, 2017, 2018 and 2019, respectively. At March 31, 2018 and 2019, allowances for doubtful accounts were $270 and $658, respectively. Concentrations of Suppliers Country risk Investment price risk |
Segment Information
Segment Information | 12 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 16. Segment Information The Company has two reportable segments: plastic injection molding and electronic products assembling. The Company's reportable segments are strategic business units that offer different products and services. They are managed separately because each business requires different technology and marketing strategies. Most of the businesses were acquired as a unit, and the management at the time of the acquisition was retained. The Company used to include the corporate expenses, which mainly comprised of directors’ remuneration, legal and professional expenses and corporate insurance expenses, in the segment of plastic injection. Commencing from this year, the corporate expenses are separately disclosed in the segment information for a more precise presentation of the financial performance of each segment. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices. Contributions of the major activities, profitability information and asset information of the Company's reportable segments for the years ended March 31, 2017, 2018 and 2019 are as follows: Year ended March 31, 2017 2018 2019 Net sales Intersegment Sales Income (loss) before income tax Net sales Intersegment Sales Income (loss) before income tax Net sales Intersegment Sales Income (loss) before income tax Segment: Injection molded plastic parts $23,594 $(350) $2,520 $28,609 $(394) $5,405 $28,956 $(178) $3,686 Electronic products 21,331 (53) 742 32,512 (60) 2,047 37,865 (62) 2,077 Segment total $44,925 $(403) $3,262 $61,121 $(454) $7,452 $66,821 $(240) $5,763 Reconciliation to consolidated totals: Sales eliminations (403) 403 - (454) 454 - (240) 240 - Corporate expenses $(1,677) $(1,255) $(1,346) Consolidated totals: Net sales $44,522 $- $60,667 $- $66,581 $- Income before income taxes $1,585 $6,197 $4,417 Year ended March 31, 2017 2018 2019 Interest income from bank deposits Interest expenses Interest income from bank deposits Interest expenses Interest income from bank deposits Interest expenses Segment: Injection molded plastic parts $306 $- $257 $- $173 $- Electronic products 8 - 10 - 11 - Consolidated total $314 $- $267 $- $184 $- Year ended March 31, 2017 2018 2019 Identifiable assets Capital expenditure Depreciation and amortization Identifiable assets Capital expenditure Depreciation and amortization Identifiable assets Capital expenditure Depreciation and amortization Segment: Injection molded plastic parts $67,912 $2,050 $1,750 $72,691 $1,644 $1,802 $71,615 $711 $1,849 Electronic products 23,075 102 385 27,708 63 336 28,554 167 265 Consolidated Totals $90,987 $2,152 $2,135 $100,399 $1,707 $2,138 $100,169 $878 $2,114 The breakdown of sales by destination is analyzed as follows: Year ended March 31, 2017 2018 2019 Net sales United States of America $8,883 $10,630 $12,862 PRC 20,637 30,077 30,772 United Kingdom 1,515 2,878 3,586 Hong Kong 5,801 4,610 4,726 Europe 4,750 8,304 8,186 Others 2,936 4,168 6,449 Total net sales $44,552 $60,667 $66,581 The location of the Company's identifiable assets is as follows: March 31, 2018 2019 Hong Kong and Macao $39,024 $46,077 PRC 61,375 54,092 Total identifiable assets 100,399 100,169 Goodwill - - Total assets $100,399 $100,169 |
Condensed Financial Information
Condensed Financial Information of Deswell Industries, Inc. | 12 Months Ended |
Mar. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of Deswell Industries, Inc. | 17. Condensed Financial Information of Deswell Industries, Inc. The condensed financial statements of Deswell Industries, Inc. have been prepared in accordance with accounting principles generally accepted in the United States of America. Under the PRC laws and regulations, Deswell Industries, Inc.’s PRC subsidiaries are restricted in their ability to transfer certain of their net assets to Deswell Industries, Inc. in the form of dividend payments, loans or advances. The amounts restricted include paid-in capital and statutory reserves, as determined pursuant to PRC generally accepted accounting principles, totaling $64,647 (equivalent to RMB 413 million) and $61,240 (equivalent to RMB 413 million) as of March 31, 2018 and 2019, respectively. Balance sheets March 31, 2018 2019 Assets Current assets: Cash and cash equivalents $259 $566 Prepaid expenses and other current assets 58 41 Amounts due from subsidiaries 26,996 23,641 Total current assets 27,313 24,248 Investments in subsidiaries 55,669 61,447 Total assets $82,982 $85,695 Liabilities and shareholders’ equity Current liabilities: Accrued payroll and employee benefits $1,590 $1,588 Other accrued liabilities 113 143 Total current liabilities 1,703 1,731 Total shareholders’ equity 81,279 83,964 Total liabilities and shareholders’ equity $82,982 $85,695 Statements of comprehensive income Year ended March 31, 2017 2018 2019 Equity in earnings of subsidiaries $3,211 $7,586 $5,778 Operating expenses 1,835 1,396 1,505 Income before income taxes 1,376 6,190 4,273 Income taxes - - - Net income 1,376 6,190 4,273 Share of other comprehensive income (loss) of subsidiaries 11 - - Total comprehensive income $1,387 $6,190 $4,273 Statements of cash flows Year ended March 31, 2017 2018 2019 Cash flows from operating activities Net income $1,376 $6,190 $4,273 Adjustments to reconcile net loss to net cash provided by operating activities: Equity in earnings of subsidiaries (3,211) (7,586) (5,778) Depreciation 17 - - Changes in operating assets and liabilities: Prepaid expenses and other current assets 46 (28) 17 Amounts due from subsidiaries 3,841 2,625 3,355 Accrued payroll and employee benefits 362 2 (2) Other accrued liabilities 5 (6) 30 Net cash provided by operating activities 2,436 1,197 1,895 Cash flows from financing activities Dividends paid (2,248) (1,112) (1,588) Repurchase of common stock (308) - - Net cash used in financing activities (2,556) (1,112) (1,588) Net (decrease) increase in cash and cash equivalents (120) 85 307 Cash and cash equivalents, beginning of year 294 174 259 Cash and cash equivalents, end of year $174 $259 $566 a) Basis of presentation In Deswell Industries, Inc. - only financial statements, Deswell Industries, Inc.’s investments in subsidiaries are stated at cost plus its equity interest in undistributed earnings of subsidiaries since inception. Accordingly, such financial statements should be read in conjunction with the Company’s consolidated financial statements. Deswell Industries, Inc. records its investments in its subsidiaries under the equity method of accounting as prescribed in ASC 323 “Investment-Equity Method and Joint Ventures”. Such investment is presented on the balance sheets as “Investments in subsidiaries” and share of the subsidiaries’ profit or loss as “Equity in earnings (loss) of subsidiaries”, on the statements of comprehensive income (loss). The subsidiaries paid dividends of $nil, $nil and $nil to Deswell Industries, Inc. for the years ended March 31, 2017, 2018 and 2019, respectively. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted. b) Related party transactions For the years ended March 31, 2017, 2018 and 2019, related party transactions mainly composed of $120, $120 and $120 paid to Jetcrown Industrial (Macao Commercial Offshore) Limited as service fee for each year. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation |
Goodwill | Goodwill |
Cash and cash equivalents | Cash and cash equivalents |
Marketable securities | Marketable securities - |
Available-for-sales securities | Available-for-sales securities - |
Inventories | I nventories - Inventories are stated at the lower of cost or market. Cost is determined on the weighted average basis. Work-in-progress and finished goods inventories consist of raw materials, direct labor and overhead associated with the manufacturing process. The Company periodically performs an analysis of inventory to determine obsolete or slow-moving inventory and determine if its cost exceeds the estimated market value. Write down of potentially obsolete or slow-moving inventory are recorded based on management’s analysis of inventory levels. |
Property, plant and equipment | Property, plant and equipment Leasehold land and buildings 30 - 50 years Plant and machinery 5 - 15 years Furniture, fixtures and equipment 4 - 5 years Motor vehicles 3 - 5 years Leasehold improvements 2 - 5 years |
Leases | Leases For the lessee, a capital lease is accounted for as if there was an acquisition of an asset and an incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases. The total rental payments made under the leases are recognized in the consolidated statement of comprehensive income (loss) as incurred. For the lessor, a capital lease is accounted for as sale-type lease, direct financing lease or leveraged lease. All other leases are accounted for as operating leases. Revenues are recorded to statement of comprehensive income (loss) on a straight-line basis over the term of the lease. The Company has no capital leases as a lessee or lessor for any of the periods presented. |
Impairment of long-lived assets | Impairment of long-lived assets |
Revenue recognition | Revenue recognition Effective April 1, 2018, the Company adopted the new guidance of ASC Topic 606, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition. Topic 606 requires the Company to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company applies the following steps to recognize revenues: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the Company satisfies a performance obligation. Products sales The Company recognizes revenue upon transfer of control of its products to the customer, which typically occurs upon delivery. The Company’s main performance obligation to its customers is the delivery of products in accordance with purchase orders. Each purchase order defines the transaction price for the products purchased under the arrangement. Acceptance of delivery of the products is evidenced by goods receipt notes signed by the customer. The Company has no remaining obligations after the customer’s acceptance of the products. Under the terms of the contracts or purchase orders between the Company and the customer, the control of the products is transferred to the customer upon the signing of the goods receipt notes and the customer has no rights to return the products (other than for defective products). Some customers examine and pick up the products at our plant while some local customers instruct us to deliver the products to their plants nearby. Some overseas customers instruct us to deliver the products to the named port of shipment. Delivery of the products occurs at that point of time when the control of the products is transferred to the customer. The selling price, which is specified in the purchase orders, is fixed. Under the terms of the purchase orders, upon the sale of the products to the customer and the signing of the good receipts notes, the Company has the legally enforceable right to receive full payment of the sales price. The customer’s obligation to pay the Company is not dependent on the customer selling the products or collecting cash from their customers (or end customers). The customer is required to pay under normal sales terms. The Company’s normal payment terms range from 30 days to 90 days and its sales arrangements do not have any material financing components. In addition, the Company’s customer arrangements do not produce contract assets or liabilities that are material to its consolidated financial statements. The Company permits the return of damaged or defective products and accounts for these actual returns as deduction from sales. Product returns to the Company were insignificant during past years. Costs to obtain a contract and incremental costs to fulfill the Company’s customer arrangements are expensed as incurred, as the amortization period is less than one year. The Company’s sales are net of value added tax (“VAT”) and business tax and surcharges collected on behalf of tax authorities in respect of product sales. VAT and business tax and surcharges collected from customers, net of VAT paid for purchases, is recorded as a liability in the consolidated balance sheets until it is paid to the tax authorities. Outbound freight and Handling costs: The company accounts for product outbound freight and handling costs as fulfillment activities and present the associated costs in selling expenses in the period in which it sells the product. Disaggregation of Revenues: The following table disaggregates product sales by business segment by geography which provides information as to the major source of revenue. See Note 16 for additional description of our reportable business segments. Year ended March 31, 2019 Injection molded Electronic Total Net sales United States of America $1,504 $11,358 $12,862 PRC 25,637 5,135 30,772 United Kingdom 255 3,331 3,586 Hong Kong 1,195 3,531 4,726 Europe 188 7,998 8,186 Others - 6,449 6,449 Total net sales $28,779 $37,802 $66,581 |
Other comprehensive income | Other omprehensive income - |
Allowance for doubtful account | Allowance for doubtful account Year ended March 31, Allowance for doubtful accounts 2017 2018 2019 Balance at beginning of the year $881 $1,252 $270 Provision for the year 420 34 419 Bad debt recovery (49) (708) (16) Written off - (308) (15) $1,252 $270 $658 The provision and the bad debt recovery for the years were charged to other income (expenses) in consolidated statements of comprehensive income. |
Shipping and handling cost | Shipping and handling cost - |
Income taxes | Income taxes 2. Summary of Significant Accounting Policies - continued The Company adopted the provisions of ASC No. 740 “Income Taxes” (“ASC 740”), which clarifies the accounting for uncertainty in income taxes recognized by prescribing a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides accounting guidance on de-recognition, classification, interest and penalties, disclosure and transition. |
Foreign currency translation | Foreign currency translation All transactions in currencies other than functional currencies during the year are translated at the exchange rates prevailing on the transaction dates. Monetary items existing at the balance sheet date denominated in currencies other than the functional currencies are translated at period end rates. Gains and losses resulting from the translation of foreign currency transactions and balances are included in the consolidated statement of comprehensive income (loss). The exchange rates between the Hong Kong dollars and the U.S. dollar were approximately 7.7904, 7.7904 and 7.7904 as of March 31, 2017, 2018 and 2019, respectively. The exchange rates between the Chinese Renminbi and the U.S. dollar were approximately 6.8915, 6.3916 and 6.7472 as of March 31, 2017, 2018 and 2019, respectively. Aggregate net foreign currency transaction gain included in other income were, $(361), $(56) and $(82) for the years ended March 31, 2017, 2018 and 2019, respectively. |
Post-retirement and post-employment benefits | Post-retirement and post-employment benefits |
Stock-based compensation | Stock-based compensation There were no stock options granted during the year ended March 31, 2017, 2018 and 2019. |
Net income per share | Net income per share Basic net income per share and diluted net income per share calculated in accordance with ASC No. 260, “Earnings Per Share”, are reconciled as follows (shares in thousands): Year ended March 31, 2017 2018 2019 Net income attributable to Deswell Industries, Inc. $1,376 $6,190 $4,273 Basic weighted average common shares outstanding 15,885 15,885 Basic net income per share $0.09 $0.39 $0.27 Year ended March 31, 2017 2018 2019 Basic weighted average common shares outstanding 16,035 15,885 15,885 Effect of dilutive securities – Options - 100 174 Diluted weighted average common and potential common shares outstanding 16,035 15,985 16,059 Diluted net income per share $0.09 $0.39 $0.27 For the years ended March 31, 2017, potential common shares of 532,000 shares related to stock options are excluded from the computation of diluted net income per share as their exercise prices were higher than the average market price. |
Use of estimates | Use of estimates - |
Fair value of financial instruments | Fair value of financial instruments - |
Fair value measurements | Fair value measurements - It establishes a three-level valuation hierarchy of valuation techniques based on observable and unobservable inputs, which may be used to measure fair value and include the following: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as certain securities that are highly liquid and are actively traded in over-the-counter markets. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques based on significant unobservable inputs, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. |
Non-recurring fair value measurements | Non-recurring fair value measurements Fair value of long-lived assets, including real estate, are determined by estimating the amount and timing of net future cash flows (which are unobservable inputs) and discounting them using a risk-adjusted rate of interest. The Company estimates future cash flows based on its experience and knowledge of the market. Significant increases or decreases in actual cash flows may result in valuation changes. For real estate, fair values are based on discounted cash flow estimates which reflect current and projected lease profiles and available industry information about capitalization rates and expected trends in rents and occupancy and are corroborated by external appraisals. |
Recent changes in accounting standards | Recent changes in accounting standards In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). The amendments in this update create Topic 842, Leases, and supersede the leases requirements in Topic 840, Leases. Topic 842 specifies the accounting for leases. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. The main difference between Topic 842 and Topic 840 is the recognition of lease assets and lease liabilities for those leases classified as operating leases under Topic 840. Topic 842 retains a distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous leases guidance. The result of retaining a distinction between finance leases and operating leases is that under the lessee accounting model in Topic 842, the effect of leases in the statement of comprehensive income and the statement of cash flows is largely unchanged from previous GAAP. The amendments in ASU 2016-02 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years for public business entities. Early application of the amendments in ASU 2016-02 is permitted. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) (“ASU 2018-13”), which eliminates, adds and modifies certain disclosure requirements for fair value measurements. The modified standard eliminates the requirement to disclose changes in unrealized gains and losses included in earnings for recurring Level 3 fair value measurements and requires changes in unrealized gains and losses be included in other comprehensive income for recurring Level 3 fair value measurements of instruments. The standard also requires the disclosure of the range and weighted average used to develop significant unobservable inputs and how weighted average is calculate for recurring and nonrecurring Level 3 fair value measurements. The amendment is effective for fiscal years beginning after December 15, 2019 and interim periods within that fiscal year with early adoption permitted. We are currently evaluating the impact of the adoption of ASU 2018-13 on our consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Property, Plant and Equipment | Leasehold land and buildings 30 - 50 years Plant and machinery 5 - 15 years Furniture, fixtures and equipment 4 - 5 years Motor vehicles 3 - 5 years Leasehold improvements 2 - 5 years |
Schedule of Disaggregates Product Sales by Business Segment by Geography | Year ended March 31, 2019 Injection molded Electronic Total Net sales United States of America $1,504 $11,358 $12,862 PRC 25,637 5,135 30,772 United Kingdom 255 3,331 3,586 Hong Kong 1,195 3,531 4,726 Europe 188 7,998 8,186 Others - 6,449 6,449 Total net sales $28,779 $37,802 $66,581 |
Schedule of Allowance for Doubtful Account | Year ended March 31, Allowance for doubtful accounts 2017 2018 2019 Balance at beginning of the year $881 $1,252 $270 Provision for the year 420 34 419 Bad debt recovery (49) (708) (16) Written off - (308) (15) $1,252 $270 $658 |
Schedule of Net Income (Loss) Per Share | Year ended March 31, 2017 2018 2019 Net income attributable to Deswell Industries, Inc. $1,376 $6,190 $4,273 Basic weighted average common shares outstanding 15,885 15,885 Basic net income per share $0.09 $0.39 $0.27 Year ended March 31, 2017 2018 2019 Basic weighted average common shares outstanding 16,035 15,885 15,885 Effect of dilutive securities – Options - 100 174 Diluted weighted average common and potential common shares outstanding 16,035 15,985 16,059 Diluted net income per share $0.09 $0.39 $0.27 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Marketable Securities [Abstract] | |
Schedule of Marketable Securities | March 31, 2018 2019 Cost $15,473 $21,746 Market value $17,282 $24,446 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net of Allowances | March 31, 2018 2019 Raw materials $6,961 $7,020 Work-in-progress 3,698 3,884 Finished goods 2,274 2,126 $12,933 $13,030 |
Schedule of Obsolescence Allowance for Inventory | Year ended March 31 2017 2018 2019 Balance at beginning of the year $3,635 $3,570 $3,634 (Usage) additional charges, net (65) 296 256 Written off - (232) - Balance at the end of the year $3,570 $3,634 $3,890 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | March 31, 2018 2019 Value added tax recoverable $419 $322 Rental and utility deposit 19 20 Advance to suppliers 243 220 Prepayment 520 526 Coupon and dividend receivable 176 109 Others 890 809 $2,267 $2,006 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | March 31, 2018 2019 At cost: Leasehold land and buildings $32,233 $32,233 Plant and machinery 39,424 38,839 Furniture, fixtures and equipment 11,559 11,642 Motor vehicles 1,540 1,513 Leasehold improvements 3,737 3,832 Impairment (3,183) (3,093) 85,310 84,966 Less: accumulated depreciation and amortization (53,816) (54,755) Net book value $31,494 $30,211 |
Schedule of Leasehold Land and Buildings | Cost of leasehold land and buildings consist of the following: March 31, 2018 2019 Land use right of state-owned land and buildings erected thereon (a) $28,077 $28,077 Long term leased land and buildings erected thereon (b) 4,156 4,156 $32,233 $32,233 (a) The land use rights of state-owned land and buildings erected thereon represent land and buildings located in the PRC on which an upfront lump-sum payment has been made for the right to use the land and building with lease terms of 50 years expiring in 2050. (b) Long term leased land and buildings erected thereon represent land and buildings on collectively-owned land located in the PRC on which an upfront lump-sum payment has been made for the right to use the land and building for a term of 50 years to 2053. Dongguan Chang An Xiaobian District Co-operation, the lessor, is the entity to whom the collectively-owned land has been granted. According to existing PRC laws and regulations, collectively-owned land is not freely transferable unless certain application and approval procedures are fulfilled by the Dongguan Chang An Xiaobian District Co-operation to change the legal form of the land from collectively-owned to state-owned. As of March 31, 2019, the Company is not aware of any steps being taken by the Dongguan Chang An Xiaobian District Co-operation for such application. Included in leasehold land and buildings is property on lease with net values of $6,409 and $6,224 as of March 31, 2018 and 2019, respectively. Details of the property on lease are as follows: Included in leasehold land and buildings March 31, 2018 2019 Cost $8,831 $8,831 Less: accumulated depreciation and amortization (2,422) (2,607) Net book value $6,409 $6,224 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Schedule of Other Accrued Liabilities | March 31, 2018 2019 Accrued expenses $620 $541 Others 1,253 1,121 $1,873 $1,662 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | Year ended March 31, 2017 2018 2019 Current tax - PRC $116 $173 $236 Deferred tax - PRC 93 (166) (92) $209 $7 $144 |
Schedule of Income Tax Rate Reconciliation | Reconciliation between the provision for income taxes computed by applying the statutory tax rate in the PRC to income before income taxes and the actual provision for income taxes is as follows: Year ended March 31, 2017 2018 2019 Provision for income taxes at statutory tax rate in the PRC $396 $1,549 $1,105 Tax rate differential on entities not subject to PRC income tax (128) (797) (284) Effect of income for which no income tax is chargeable (666) (757) (791) Effect of expense for which no income tax is deductible 1,395 207 142 Net change in valuation allowances (788) (195) (22) Over provision of income tax is previous years - - (6) Effective tax $209 $7 144 |
Components of Deferred Income Tax | The net deferred income tax consists of the following: March 31, 2018 2019 Deferred income tax assets $- $- Deferred income tax liabilities (775) (659) Net deferred income tax liabilities $(775) (659) The components of net deferred income tax are as follows: March 31, 2018 2019 Net operating loss carry forwards $- $- Provision of employee benefits 539 582 Depreciation and amortization (128) 85 Revenue and cost of sales recognized for financial reporting purpose before being recognized for tax purpose (1,333) (1,277) Others 328 110 Less: Valuation allowances (181) (159) Net deferred income tax liabilities $(775) (659) |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of total unrecognized tax benefits is as follows: Year ended March 31, 2017 2018 2019 Balance at the beginning of the year $268 $316 $424 Increase related to current year tax positions 48 108 58 Balance at the end of the year $316 $424 $482 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Future Minimum Payments under Operating Lease Agreements | Year ending March 31, 2020 $53 Year ending March 31, 2021 4 Total minimum lease payments $57 |
Schedule of Future Rental Income | Year ending March 31, 2020 $1,291 Year ending March 31, 2021 274 Year ending March 31, 2022 6 Total minimum future rental income $1,571 |
Stock Option Plan (Tables)
Stock Option Plan (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Payment Activity | Year ended March 31, 2017 2018 2019 Number of stock options Weighted average exercise price Number of stock options Weighted average exercise price Number of stock options Weighted average exercise price Outstanding at beginning of the year 532,000 $2.1 532,000 $2.1 506,000 $2.1 Cancelled during the year - - (26,000) $2.1 (6,000) $2.09 Outstanding and exercisable at the end of the year 532,000 $2.1 506,000 $2.1 500,000 $2.1 Range of exercise price per share $2.09 to $2.14 $2.09 to $2.14 $2.09 to $2.14 |
Other (expenses) income, net (T
Other (expenses) income, net (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of Other (expenses) income, net | Year ended March 31, 2017 2018 2019 Loss on disposal of property, plant and equipment, net $(162) $(61) $(22) Exchange loss, net (361) (56) (82) (Provision for) reversal of doubtful accounts, net (371) 674 (403) Others 198 337 229 Other (expenses) income, net $(696) $894 $(278) |
Non-operating income, net (Tabl
Non-operating income, net (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Other Income, Nonoperating [Abstract] | |
Schedule of Non-operating Income, Net | Year ended March 31, 2017 2018 2019 Dividend income from marketable securities $616 $859 $738 Interest income from available-for-sales securities 5 - - Interest income from bank deposits 314 267 184 Unrealized gain from marketable securities 1,999 1,401 891 Realized gain from sales of marketable securities 69 609 746 Rental income 839 1,111 1,455 Others (154) 148 (130) Non-operating income, net $3,688 $4,395 $3,884 |
Operating Risk (Tables)
Operating Risk (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Sales Revenue, Net [Member] | |
Concentration Risk [Line Items] | |
Schedule of Operating Risks | Percentage of net sales Year ended March 31, 2017 2018 2019 Customer A 12.8% 10.8% * Customer B 10.6% *% 11.5% Customer C 10.2% 10.8% * Customer D * 12.8% 12.5% Customer E * 11.9% 11.1% * Less than 10% |
Accounts Receivable [Member] | |
Concentration Risk [Line Items] | |
Schedule of Operating Risks | Percentage of accounts receivable at March 31, 2018 2019 Customer A 15.5% 14.4% Customer C * 10.8% Customer D 21.0% 26.0% Customer E 12.9% * * Less than 10% |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Contributions of Profitability Information For Reportable Segments | Year ended March 31, 2017 2018 2019 Net sales Intersegment Sales Income (loss) before income tax Net sales Intersegment Sales Income (loss) before income tax Net sales Intersegment Sales Income (loss) before income tax Segment: Injection molded plastic parts $23,594 $(350) $2,520 $28,609 $(394) $5,405 $28,956 $(178) $3,686 Electronic products 21,331 (53) 742 32,512 (60) 2,047 37,865 (62) 2,077 Segment total $44,925 $(403) $3,262 $61,121 $(454) $7,452 $66,821 $(240) $5,763 Reconciliation to consolidated totals: Sales eliminations (403) 403 - (454) 454 - (240) 240 - Corporate expenses $(1,677) $(1,255) $(1,346) Consolidated totals: Net sales $44,522 $- $60,667 $- $66,581 $- Income before income taxes $1,585 $6,197 $4,417 Year ended March 31, 2017 2018 2019 Interest income from bank deposits Interest expenses Interest income from bank deposits Interest expenses Interest income from bank deposits Interest expenses Segment: Injection molded plastic parts $306 $- $257 $- $173 $- Electronic products 8 - 10 - 11 - Consolidated total $314 $- $267 $- $184 $- Year ended March 31, 2017 2018 2019 Identifiable assets Capital expenditure Depreciation and amortization Identifiable assets Capital expenditure Depreciation and amortization Identifiable assets Capital expenditure Depreciation and amortization Segment: Injection molded plastic parts $67,912 $2,050 $1,750 $72,691 $1,644 $1,802 $71,615 $711 $1,849 Electronic products 23,075 102 385 27,708 63 336 28,554 167 265 Consolidated Totals $90,987 $2,152 $2,135 $100,399 $1,707 $2,138 $100,169 $878 $2,114 |
Schedule of Net Sales by Geographical Area | Year ended March 31, 2017 2018 2019 Net sales United States of America $8,883 $10,630 $12,862 PRC 20,637 30,077 30,772 United Kingdom 1,515 2,878 3,586 Hong Kong 5,801 4,610 4,726 Europe 4,750 8,304 8,186 Others 2,936 4,168 6,449 Total net sales $44,552 $60,667 $66,581 |
Schedule of Segment Indentifiable Assets by Geographical Area | The location of the Company's identifiable assets is as follows: March 31, 2018 2019 Hong Kong and Macao $39,024 $46,077 PRC 61,375 54,092 Total identifiable assets 100,399 100,169 Goodwill - - Total assets $100,399 $100,169 |
Condensed Financial Informati_2
Condensed Financial Information of Deswell Industries, Inc. (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheet | Balance sheets March 31, 2018 2019 Assets Current assets: Cash and cash equivalents $259 $566 Prepaid expenses and other current assets 58 41 Amounts due from subsidiaries 26,996 23,641 Total current assets 27,313 24,248 Investments in subsidiaries 55,669 61,447 Total assets $82,982 $85,695 Liabilities and shareholders’ equity Current liabilities: Accrued payroll and employee benefits $1,590 $1,588 Other accrued liabilities 113 143 Total current liabilities 1,703 1,731 Total shareholders’ equity 81,279 83,964 Total liabilities and shareholders’ equity $82,982 $85,695 |
Condensed Income Statement | Statements of comprehensive income Year ended March 31, 2017 2018 2019 Equity in earnings of subsidiaries $3,211 $7,586 $5,778 Operating expenses 1,835 1,396 1,505 Income before income taxes 1,376 6,190 4,273 Income taxes - - - Net income 1,376 6,190 4,273 Share of other comprehensive income (loss) of subsidiaries 11 - - Total comprehensive income $1,387 $6,190 $4,273 |
Condensed Cash Flow Statement | Statements of cash flows Year ended March 31, 2017 2018 2019 Cash flows from operating activities Net income $1,376 $6,190 $4,273 Adjustments to reconcile net loss to net cash provided by operating activities: Equity in earnings of subsidiaries (3,211) (7,586) (5,778) Depreciation 17 - - Changes in operating assets and liabilities: Prepaid expenses and other current assets 46 (28) 17 Amounts due from subsidiaries 3,841 2,625 3,355 Accrued payroll and employee benefits 362 2 (2) Other accrued liabilities 5 (6) 30 Net cash provided by operating activities 2,436 1,197 1,895 Cash flows from financing activities Dividends paid (2,248) (1,112) (1,588) Repurchase of common stock (308) - - Net cash used in financing activities (2,556) (1,112) (1,588) Net (decrease) increase in cash and cash equivalents (120) 85 307 Cash and cash equivalents, beginning of year 294 174 259 Cash and cash equivalents, end of year $174 $259 $566 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2014USD ($) | |
Impairment of long-lived assets | ||||
Shipping and handling cost | 529 | 557 | 501 | |
Aggregate net foreign currency transaction gain | (82) | (56) | (361) | |
Goodwill | $ 393 | |||
Proceeds from disposal of available-for-sale securities | 1,600 | |||
Unrealized loss on available-for-sale securities | $ (3) | |||
Hong Kong, Dollars | ||||
Exchange rate per dollar | 7.7904 | 7.7904 | 7.7904 | |
China, Yuan Renminbi | ||||
Exchange rate per dollar | 6.7472 | 6.3916 | 6.8915 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Property, Plant and Equipment) (Details) | 12 Months Ended |
Mar. 31, 2019 | |
Leasehold land and buildings [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 30 years |
Leasehold land and buildings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 50 years |
Plant and machinery [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Plant and machinery [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 15 years |
Furniture, fixtures and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 4 years |
Furniture, fixtures and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Motor vehicles [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Motor vehicles [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 2 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Schedule of Disaggregates Product Sales by Business Segment by Geography) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net sales | $ 66,581 | $ 60,667 | $ 44,522 |
Injection Molded Plastic Parts [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net sales | 28,779 | ||
Electronic Products [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net sales | 37,802 | ||
UNITED STATES [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net sales | 12,862 | 10,630 | 8,883 |
UNITED STATES [Member] | Injection Molded Plastic Parts [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net sales | 1,504 | ||
UNITED STATES [Member] | Electronic Products [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net sales | 11,358 | ||
CHINA [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net sales | 30,772 | 30,077 | 20,637 |
CHINA [Member] | Injection Molded Plastic Parts [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net sales | 25,637 | ||
CHINA [Member] | Electronic Products [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net sales | 5,135 | ||
UNITED KINGDOM [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net sales | 3,586 | 2,878 | 1,515 |
UNITED KINGDOM [Member] | Injection Molded Plastic Parts [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net sales | 255 | ||
UNITED KINGDOM [Member] | Electronic Products [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net sales | 3,331 | ||
HONG KONG [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net sales | 4,726 | 4,610 | 5,801 |
HONG KONG [Member] | Intersegment Eliminations [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net sales | 1,195 | ||
HONG KONG [Member] | Electronic Products [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net sales | 3,531 | ||
Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net sales | 8,186 | 8,304 | 4,750 |
Europe [Member] | Injection Molded Plastic Parts [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net sales | 188 | ||
Europe [Member] | Electronic Products [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net sales | 7,998 | ||
Segments Geographical Location Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net sales | 6,449 | $ 4,168 | $ 2,936 |
Segments Geographical Location Other [Member] | Intersegment Eliminations [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net sales | |||
Segments Geographical Location Other [Member] | Electronic Products [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net sales | $ 6,449 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Allowance for Doubtful Account) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Allowance for doubtful accounts | |||
Balance at beginning of the year | $ 270 | $ 1,252 | $ 881 |
Provision for the year | 419 | 34 | 420 |
Bad debt recovery | (16) | (708) | (49) |
Written off | (15) | (308) | |
Balance at end of the year | $ 658 | $ 270 | $ 1,252 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Net Income (Loss) Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Net (loss) income attributable to Deswell Industries, Inc.: | |||
Net income attributable to Deswell Industries, Inc. | $ 4,273 | $ 6,190 | $ 1,376 |
Basic weighted average common shares outstanding | 15,885 | 15,885 | 16,035 |
Basic net income per share | $ 0.27 | $ 0.39 | $ 0.09 |
Effect of dilutive securities - Options | 174 | 100 | |
Diluted weighted average common and potential common shares outstanding | 16,059 | 15,985 | 16,035 |
Diluted net income per share | $ 0.27 | $ 0.39 | $ 0.09 |
Potential common shares related to stock options excluded from the computation of diluted net income (loss) per share | 532,000 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Marketable Securities [Abstract] | |||
Marketable securities, cost | $ 21,746 | $ 15,473 | |
Marketable securities, market value | 24,446 | 17,282 | |
Unrealized gain (loss) on marketable securities | 891 | 1,401 | $ 1,999 |
Proceeds from sale of marketable securities | 7,210 | 6,580 | 920 |
Realized gain from sale of marketable securities | $ 746 | $ 609 | $ 69 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 7,020 | $ 6,961 | |
Work-in-progress | 3,884 | 3,698 | |
Finished goods | 2,126 | 2,274 | |
Total inventories | 13,030 | 12,933 | |
Balance at beginning of the year | 3,634 | 3,570 | $ 3,635 |
(Usage) additional charges, net | 256 | 296 | (65) |
Written off | (232) | ||
Balance at the end of the year | $ 3,890 | $ 3,634 | $ 3,570 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Value added tax recoverable | $ 322 | $ 419 |
Rental and utility deposit | 20 | 19 |
Advance to suppliers | 220 | 243 |
Prepayment | 526 | 520 |
Coupon and dividend receivable | 109 | 176 |
Others | 809 | 890 |
Total prepaid expenses and other current assets | $ 2,006 | $ 2,267 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Property, Plant and Equipment [Line Items] | ||||
Cost | $ 84,966 | $ 85,310 | ||
Impairment | (3,093) | (3,183) | ||
Less: accumulated depreciation and amortization | (54,755) | (53,816) | ||
Net book value | 30,211 | 31,494 | ||
Net value of computer software included in furniture, fixture and equipment | 26 | 26 | ||
Impairment of property, plant and equipment | ||||
Depreciation of property, plant and equipment | 2,114 | 2,138 | $ 2,135 | |
Long Term Leased Land And Buildings [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | [1] | $ 4,156 | $ 4,156 | |
Lease terms | 50 years | 50 years | ||
Lease expiration period | Dec. 31, 2053 | Dec. 31, 2053 | ||
Use Rights [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | [2] | $ 28,077 | $ 28,077 | |
Lease terms | 50 years | 50 years | ||
Lease expiration period | Dec. 31, 2050 | Dec. 31, 2050 | ||
Leasehold land and buildings [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | $ 32,233 | $ 32,233 | ||
Plant and machinery [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | 38,839 | 39,424 | ||
Furniture, fixtures and equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | 11,642 | 11,559 | ||
Motor vehicles [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | 1,513 | 1,540 | ||
Leasehold Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | 3,832 | 3,737 | ||
Property Subject to Operating Lease [Member] | Leasehold land and buildings [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | 8,831 | 8,831 | ||
Less: accumulated depreciation and amortization | (2,607) | (2,422) | ||
Net book value | $ 6,224 | $ 6,409 | ||
[1] | Long term leased land and buildings erected thereon represent land and buildings on collectively-owned land located in the PRC on which an upfront lump-sum payment has been made for the right to use the land and building for a term of 50 years to 2053. Dongguan Chang An Xiaobian District Co-operation, the lessor, is the entity to whom the collectively-owned land has been granted. According to existing PRC laws and regulations, collectively-owned land is not freely transferable unless certain application and approval procedures are fulfilled by the Dongguan Chang An Xiaobian District Co-operation to change the legal form of the land from collectively-owned to state-owned. As of March 31, 2019, the Company is not aware of any steps being taken by the Dongguan Chang An Xiaobian District Co-operation for such application. | |||
[2] | The land use rights of state-owned land and buildings erected thereon represent land and buildings located in the PRC on which an upfront lump-sum payment has been made for the right to use the land and building with lease terms of 50 years expiring in 2050. |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Accrued expenses | $ 541 | $ 620 |
Others | 1,121 | 1,253 |
Total other accrued liabilities | $ 1,662 | $ 1,873 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Net (loss) income before taxes | $ 4,417 | $ 6,197 | $ 1,585 |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income Tax Provision) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Provision for income taxes | |||
Current tax - PRC | $ 236 | $ 173 | $ 116 |
Deferred tax - PRC | (92) | (166) | 93 |
Effective tax | $ 144 | $ 7 | $ 209 |
Income Taxes (Schedule of Recon
Income Taxes (Schedule of Reconciliation of Provision for Income Taxes Using Statutory Tax Rates to Loss Before Income Taxes and Actual Provision) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Provision for income taxes at statutory tax rate in the PRC | $ 1,105 | $ 1,549 | $ 396 |
Tax rate differential on entities not subject to PRC income tax | (284) | (797) | (128) |
Effect of income for which no income tax is chargeable | (791) | (757) | (666) |
Effect of expense for which no income tax is deductible | 142 | 207 | 1,395 |
Net change in valuation allowances | (22) | (195) | (788) |
Over provision of income tax is previous years | (6) | ||
Effective tax | $ 144 | $ 7 | $ 209 |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Income Tax Assets and Liabilties) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Deferred income tax assets | ||
Deferred income tax liabilities | (659) | (775) |
Net deferred income tax liabilities | $ (659) | $ (775) |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Income Tax) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Deferred income tax assets (liabilities): | ||
Net operating loss carry forwards | ||
Provision of employee benefits | 582 | 539 |
Depreciation and amortization | (85) | (128) |
Revenue and cost of sales recognized for financial reporting purpose before being recognized for tax purpose | (1,277) | (1,333) |
Others | 110 | 328 |
Less: Valuation allowances | (159) | (181) |
Net deferred income tax liabilities | $ (659) | $ (775) |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Balance at the beginning of the year | $ 424 | $ 316 | $ 268 |
Increase related to current year tax positions | 58 | 108 | 48 |
Balance at the end of the year | $ 482 | $ 424 | $ 316 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rental expenses under operating leases | $ 72 | $ 68 | $ 62 |
Future minimum rental payments under operating leases: | |||
Year ending March 31, 2020 | 53 | ||
Year ending March 31, 2021 | 4 | ||
Total minimum lease payments | 57 | ||
Future minimum rental income | |||
Year ending March 31, 2020 | 1,291 | ||
Year ending March 31, 2021 | 274 | ||
Year ending March 31, 2022 | 6 | ||
Total minimum future rental income | 1,571 | ||
Capital commitments for purchase of furniture and fixtures expected to be disbursed | $ 235 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Chinese government state pension expense | $ 751 | $ 800 | $ 604 |
Percentage of average monthly salary used to calculate pension expense, minimum range | 8.00% | 8.00% | 8.00% |
Percentage of average monthly salary used to calculate pension expense, maximum range | 14.00% | 14.00% | 14.00% |
Stock Option Plan (Narrative) (
Stock Option Plan (Narrative) (Details) - shares | Aug. 07, 2013 | Mar. 31, 2019 | Mar. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted | 5,669,000 | ||
Expiration period of options | 10 years | ||
Weighted average remaining contractual life | 4 years 9 months 18 days | ||
Options available for future grant | 1,268,000 | 1,262,000 | |
Stock Option Plan Three [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option plan, shares authorized | 3,500,000 | ||
Stock option plan, additional shares authorized | 900,000 |
Stock Option Plan (Schedule of
Stock Option Plan (Schedule of Stock Option Plan Activity) (Details) - $ / shares | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Number of stock options | |||
Outstanding at beginning of the year | 506,000 | 532,000 | 532,000 |
Cancelled during the year | (6,000) | (26,000) | |
Outstanding and exercisable at the end of the year | 500,000 | 506,000 | 532,000 |
Weighted average exercise price | |||
Outstanding at beginning of the year | $ 2.1 | $ 2.1 | $ 2.1 |
Cancelled during the year | 2.09 | 2.1 | |
Outstanding and exercisable at the end of the year | 2.1 | 2.1 | 2.1 |
Minimum exercise price per share | 2.09 | 2.09 | 2.09 |
Maximum exercise price per share | $ 2.14 | $ 2.14 | $ 2.14 |
Repurchase of Stock (Details)
Repurchase of Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2014 | Mar. 14, 2012 | |
Stockholders' Equity Note [Abstract] | |||||
Authorized repurchase amount | $ 4,000 | ||||
Repurchase of common stock, shares | 171,000 | 975,571 | |||
Repurchase of common stock, value | $ 308 | $ 2,513 | |||
Repurchased common stock, average price per share | $ 1.80 | $ 2.57 |
Other (expenses) income, net (D
Other (expenses) income, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Other Income and Expenses [Abstract] | |||
Loss on disposal of property, plant and equipment, net | $ (22) | $ (61) | $ (162) |
Exchange loss, net | (82) | (56) | (361) |
(Provision for) reversal of doubtful accounts, net | (403) | 674 | (371) |
Others | 229 | 337 | 198 |
Other (expenses) income, net | $ (278) | $ 894 | $ (696) |
Non-operating income, net (Deta
Non-operating income, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Other Income, Nonoperating [Abstract] | |||
Dividend income from marketable securities | $ 738 | $ 859 | $ 616 |
Interest income from available-for-sales securities | 5 | ||
Interest income from bank deposits | 184 | 267 | 314 |
Unrealized gain from marketable securities | 891 | 1,401 | 1,999 |
Realized gain from sales of marketable securities | 746 | 609 | 69 |
Rental income | 1,455 | 1,111 | 839 |
Others | (130) | 148 | (154) |
Non-operating income, net | $ 3,884 | $ 4,395 | $ 3,688 |
Operating Risk (Details)
Operating Risk (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | ||||
Concentration Risk [Line Items] | |||||||
Provision for doubtful accounts, net | $ 403 | $ (674) | $ 371 | ||||
Charge off provision for doubtful accounts | 15 | 308 | |||||
Allowances for doubtful accounts | $ 658 | $ 270 | $ 1,252 | $ 881 | |||
Sales Revenue, Net [Member] | Customer A [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration risk, percentage | [1] | 10.80% | 12.80% | ||||
Sales Revenue, Net [Member] | Customer B [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration risk, percentage | 11.50% | [1] | 10.60% | ||||
Sales Revenue, Net [Member] | Customer C [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration risk, percentage | [1] | 10.80% | 10.20% | ||||
Sales Revenue, Net [Member] | Customer D [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration risk, percentage | 12.50% | 12.80% | [1] | ||||
Sales Revenue, Net [Member] | Customer E [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration risk, percentage | 11.10% | 11.90% | [1] | ||||
Accounts Receivable [Member] | Customer A [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration risk, percentage | 14.40% | 15.50% | |||||
Accounts Receivable [Member] | Customer C [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration risk, percentage | 10.80% | [1] | |||||
Accounts Receivable [Member] | Customer D [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration risk, percentage | 26.00% | 21.00% | |||||
Accounts Receivable [Member] | Customer E [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration risk, percentage | [1] | 12.90% | |||||
[1] | Less than 10% |
Segment Information (Contributi
Segment Information (Contributions of Profitability Information For Reportable Segments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total net sales | $ 66,581 | $ 60,667 | $ 44,522 |
Income before income taxes | 4,417 | 6,197 | 1,585 |
Intersegment Eliminations [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total net sales | (240) | (454) | (403) |
Injection Molded Plastic Parts [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total net sales | 28,956 | 28,609 | 23,594 |
Income before income taxes | 3,686 | 5,405 | 2,520 |
Injection Molded Plastic Parts [Member] | Intersegment Eliminations [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total net sales | (178) | (394) | (350) |
Electronic Products [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total net sales | 37,865 | 32,512 | 21,331 |
Income before income taxes | 2,077 | 2,047 | 742 |
Electronic Products [Member] | Intersegment Eliminations [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total net sales | (62) | (60) | (53) |
Segment Total [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total net sales | 66,821 | 61,121 | 44,925 |
Income before income taxes | 5,763 | 7,452 | 3,262 |
Sales eliminations [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total net sales | (240) | (454) | (403) |
Sales eliminations [Member] | Intersegment Eliminations [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total net sales | 240 | 454 | 403 |
Corporate expenses [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Income before income taxes | $ (1,346) | $ (1,255) | $ (1,677) |
Segment Information (Schedule o
Segment Information (Schedule of Segment Interest Income and Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Interest income from bank deposits | $ 184 | $ 267 | $ 314 |
Interest expenses | |||
Injection Molded Plastic Parts [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest income from bank deposits | 173 | 257 | 306 |
Interest expenses | |||
Electronic Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest income from bank deposits | 11 | 10 | 8 |
Interest expenses |
Segment Information (Schedule_2
Segment Information (Schedule of Segment Asset Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Capital expenditure | $ 878 | $ 1,707 | $ 2,152 |
Depreciation and amortization | 2,114 | 2,138 | 2,135 |
Injection Molded Plastic Parts [Member] | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Identifiable assets | 71,615 | 72,691 | 67,912 |
Capital expenditure | 711 | 1,644 | 2,050 |
Depreciation and amortization | 1,849 | 1,802 | 1,750 |
Electronic Products [Member] | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Identifiable assets | 28,554 | 27,708 | 23,075 |
Capital expenditure | 167 | 63 | 102 |
Depreciation and amortization | 265 | 336 | 385 |
Segment Total [Member] | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Identifiable assets | 100,169 | 100,399 | 90,987 |
Capital expenditure | 878 | 1,707 | 2,152 |
Depreciation and amortization | $ 2,114 | $ 2,138 | $ 2,135 |
Segment Information (Schedule_3
Segment Information (Schedule of Net Sales by Geographical Area) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales from continuing operations | $ 66,581 | $ 60,667 | $ 44,522 |
Total net sales | 66,581 | 60,667 | 44,522 |
UNITED STATES [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales from continuing operations | 12,862 | 10,630 | 8,883 |
CHINA [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales from continuing operations | 30,772 | 30,077 | 20,637 |
UNITED KINGDOM [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales from continuing operations | 3,586 | 2,878 | 1,515 |
HONG KONG [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales from continuing operations | 4,726 | 4,610 | 5,801 |
Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales from continuing operations | 8,186 | 8,304 | 4,750 |
Segments Geographical Location Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales from continuing operations | $ 6,449 | $ 4,168 | $ 2,936 |
Segment Information (Schedule_4
Segment Information (Schedule of Segment Indentifiable Assets by Geographical Area) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total identifiable assets | $ 100,169 | $ 100,399 | |
Goodwill | $ 393 | ||
Total assets | 100,169 | 100,399 | |
Hong Kong And Macao [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total identifiable assets | 46,077 | 39,024 | |
CHINA [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total identifiable assets | $ 54,092 | $ 61,375 |
Condensed Financial Informati_3
Condensed Financial Information of Deswell Industries, Inc. (Narrative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | |
Related Party Transaction [Line Items] | |||||
Net assets of subsidiaries restricted from transfer to the parent company | $ 61,240 | $ 64,647 | |||
China, Yuan Renminbi | |||||
Related Party Transaction [Line Items] | |||||
Net assets of subsidiaries restricted from transfer to the parent company | ¥ | ¥ 413,000 | ¥ 413,000 | |||
Subsidiary of Common Parent [Member] | |||||
Related Party Transaction [Line Items] | |||||
Amount of related party transaction | $ 120 | $ 120 | $ 120 |
Condensed Financial Informati_4
Condensed Financial Information of Deswell Industries, Inc. (Condensed Balance Sheets) (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018USD ($) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016USD ($) | Mar. 31, 2016CNY (¥) |
Current assets: | ||||||||
Cash and cash equivalents | $ | $ 14,371 | $ 15,192 | $ 8,078 | $ 11,996 | ||||
Prepaid expenses and other current assets | $ | 2,006 | 2,267 | ||||||
Total current assets | $ | 69,958 | 68,905 | ||||||
Property, plant and equipment-net | $ | 30,211 | 31,494 | ||||||
Total assets | $ | 100,169 | 100,399 | ||||||
Current liabilities: | ||||||||
Accrued payroll and employee benefits | $ | 5,676 | 5,566 | ||||||
Other accrued liabilities | $ | 1,662 | 1,873 | ||||||
Total current liabilities | $ | 16,205 | 19,120 | ||||||
Total shareholders' equity | $ | 83,964 | 81,279 | $ 76,201 | $ 76,808 | ||||
Total liabilities and shareholders' equity | $ | $ 100,169 | $ 100,399 | ||||||
Parent Company [Member] | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | ¥ 566 | ¥ 259 | ¥ 174 | ¥ 294 | ||||
Prepaid expenses and other current assets | 41 | 58 | ||||||
Amounts due from subsidiaries | 23,641 | 26,996 | ||||||
Total current assets | 24,248 | 27,313 | ||||||
Investments in subsidiaries | 61,447 | 55,669 | ||||||
Total assets | 85,695 | 82,982 | ||||||
Current liabilities: | ||||||||
Accrued payroll and employee benefits | 1,588 | 1,590 | ||||||
Other accrued liabilities | 143 | 113 | ||||||
Total current liabilities | 1,731 | 1,703 | ||||||
Total shareholders' equity | 83,964 | 81,279 | ||||||
Total liabilities and shareholders' equity | ¥ 85,695 | ¥ 82,982 |
Condensed Financial Informati_5
Condensed Financial Information of Deswell Industries, Inc. (Statements of Comprehensive Loss) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018USD ($) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | |
Condensed Income Statements, Captions [Line Items] | ||||||
Income before income taxes | $ | $ 4,417 | $ 6,197 | $ 1,585 | |||
Income taxes | $ | 144 | 7 | 209 | |||
Net Income | $ | 4,273 | 6,190 | 1,376 | |||
Share of other comprehensive income (loss) of subsidiaries | $ | (3) | |||||
Total comprehensive income | $ | $ 4,273 | $ 6,190 | $ 1,387 | |||
Parent Company [Member] | ||||||
Condensed Income Statements, Captions [Line Items] | ||||||
Equity in earnings of subsidiaries | ¥ 5,778 | ¥ 7,586 | ¥ 3,211 | |||
Operating expenses | 1,505 | 1,396 | 1,835 | |||
Income before income taxes | 4,273 | 6,190 | 1,376 | |||
Income taxes | ||||||
Net Income | 4,273 | 6,190 | 1,376 | |||
Share of other comprehensive income (loss) of subsidiaries | 11 | |||||
Total comprehensive income | ¥ 4,273 | ¥ 6,190 | ¥ 1,387 |
Condensed Financial Informati_6
Condensed Financial Information of Deswell Industries, Inc. (Condensed Statement of Cashflows) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018USD ($) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2014USD ($) | |
Cash flows from operating activities | |||||||
Net income | $ | $ 4,273 | $ 6,190 | $ 1,376 | ||||
Changes in operating assets and liabilities: | |||||||
Prepaid expenses and other current assets | $ | 261 | 152 | (761) | ||||
Accrued payroll and employee benefits | $ | 110 | 923 | 608 | ||||
Other accrued liabilities | $ | (211) | 399 | 185 | ||||
Net cash provided by operating activities | $ | 2,166 | 5,699 | (1,082) | ||||
Cash flows from financing activities | |||||||
Dividends paid | $ | (1,588) | (1,112) | (2,248) | ||||
Repurchase of common stock | $ | (308) | $ (2,513) | |||||
Net cash used in financing activities | $ | (1,588) | (1,112) | (2,556) | ||||
Net (decrease) increase in cash and cash equivalents | $ | (821) | 7,114 | (3,918) | ||||
Cash and cash equivalents, beginning of year | $ | 15,192 | 8,078 | 11,996 | ||||
Cash and cash equivalents, end of year | $ | $ 14,371 | $ 15,192 | $ 8,078 | ||||
Parent Company [Member] | |||||||
Cash flows from operating activities | |||||||
Net income | ¥ 4,273 | ¥ 6,190 | ¥ 1,376 | ||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Equity in earnings of subsidiaries | (5,778) | (7,586) | (3,211) | ||||
Depreciation | 17 | ||||||
Changes in operating assets and liabilities: | |||||||
Prepaid expenses and other current assets | 17 | (28) | 46 | ||||
Amounts due from subsidiaries | 3,355 | 2,625 | 3,841 | ||||
Accrued payroll and employee benefits | (2) | 2 | 362 | ||||
Other accrued liabilities | 30 | (6) | 5 | ||||
Net cash provided by operating activities | 1,895 | 1,197 | 2,436 | ||||
Cash flows from financing activities | |||||||
Dividends paid | (1,588) | (1,112) | (2,248) | ||||
Repurchase of common stock | (308) | ||||||
Net cash used in financing activities | (1,588) | (1,112) | (2,556) | ||||
Net (decrease) increase in cash and cash equivalents | 307 | 85 | (120) | ||||
Cash and cash equivalents, beginning of year | 259 | 174 | 294 | ||||
Cash and cash equivalents, end of year | ¥ 566 | ¥ 259 | ¥ 174 |