Document and Entity Information
Document and Entity Information - Mar. 31, 2015 - shares | Total |
Document and Entity Information [Abstract] | |
Entity Registrant Name | DESWELL INDUSTRIES INC |
Entity Central Index Key | 946,936 |
Trading Symbol | dswl |
Entity Current Reporting Status | Yes |
Current Fiscal Year End Date | --03-31 |
Entity Filer Category | Non-accelerated Filer |
Entity Well-Known Seasoned Issuer | No |
Entity Common Stock, Shares Outstanding | 16,056,239 |
Document Type | 20-F |
Document Period End Date | Mar. 31, 2015 |
Amendment Flag | false |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 14,325 | $ 23,278 |
Time deposits maturing over three months | 9,911 | 11,258 |
Marketable securities (note 3) | 9,803 | 5,303 |
Available-for-sale securities (note 4) | 1,676 | 1,643 |
Accounts receivable, less allowances for doubtful accounts of $534 and $607 at March 31, 2014 and 2015, respectively | 9,577 | 7,926 |
Inventories (note 5) | 10,828 | 11,012 |
Prepaid expenses and other current assets (note 6) | 2,120 | 1,474 |
Total current assets | 58,240 | 61,894 |
Property, plant and equipment, net (note 7) | 36,598 | $ 38,742 |
Time deposits maturing over twelve months | $ 1,601 | |
Goodwill (note 8) | ||
Total assets | $ 96,439 | $ 100,636 |
Current liabilities: | ||
Accounts payable | 3,348 | 2,665 |
Accrued payroll and employee benefits | 4,228 | 4,391 |
Customer deposits | 2,450 | 1,780 |
Other accrued liabilities (note 10) | 1,201 | 1,237 |
Income taxes payable | 345 | 262 |
Deferred income tax liabilities (note 11) | 804 | 691 |
Total current liabilities | $ 12,376 | $ 11,026 |
Commitments and contingencies (note 12) | ||
Shareholders' equity: | ||
Common shares nil par value; authorized 30,000,000 shares; 17,031,810 and 17,031,810 shares issued as of March 31, 2014 and 2015; 16,056,239 and 16,056,239 shares outstanding as of March 31, 2014 and 2015 | $ 53,063 | $ 53,063 |
Treasury stock at cost; 975,571 and 975,571 shares as of March 31, 2014 and 2015 (note 15) | (2,513) | (2,513) |
Additional paid-in capital | 8,005 | 7,806 |
Accumulated other comprehensive income | 5,378 | 5,345 |
Retained earnings | 20,130 | 25,909 |
Total shareholders' equity | 84,063 | 89,610 |
Total liabilities and shareholders' equity | $ 96,439 | $ 100,636 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands, None in scaling factor is -9223372036854775296 | Mar. 31, 2015 | Mar. 31, 2014 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Allowances for doubtful accounts | $ 607 | $ 534 |
Common shares, no par value | ||
Common shares, authorized | 30,000,000 | 30,000,000 |
Common shares, issued | 17,031,810 | 17,031,810 |
Common shares, outstanding | 16,056,239 | 16,056,239 |
Treasury stock, at cost | 975,571 | 975,571 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS [Abstract] | |||
Net sales from continuing operations | $ 38,076 | $ 40,932 | $ 53,382 |
Cost of sales | 33,852 | 37,295 | 46,171 |
Gross profit | 4,224 | 3,637 | 7,211 |
Selling, general and administrative expenses | 9,123 | 10,257 | 10,714 |
Other income (expenses), net (note 16) | 93 | (214) | 233 |
Operating loss | (4,806) | (6,834) | (3,270) |
Non-operating income, net (note 17) | 2,553 | 379 | 2,056 |
Loss from continuing operations, before income taxes | (2,253) | (6,455) | (1,214) |
Income taxes (note 11) | 207 | 624 | 328 |
Loss from continuing operations, after income taxes | (2,460) | (7,079) | (1,542) |
Loss from discontinued operations, net of tax | (348) | (411) | (449) |
Net loss attributable to Deswell Industries, Inc. | (2,808) | (7,490) | (1,991) |
Other comprehensive income | |||
Unrealized gain on available-for-sale securities | 33 | 57 | 718 |
Total comprehensive loss attributable to Deswell Industries, Inc. | $ (2,775) | $ (7,433) | $ (1,273) |
Basic and Diluted: | |||
Loss from continuing opertions per share | $ (0.15) | $ (0.43) | $ (0.09) |
Loss from discontinued operations per share | (0.02) | (0.03) | (0.03) |
Net loss per share | $ (0.17) | $ (0.46) | $ (0.12) |
Weighted average common shares outstanding (shares in thousands) | 16,056 | 16,186 | 16,467 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common stock [Member] | Treasury Stock [Member] | Additional paid-in capital [Member] | Accumulated other comprehensive income [Member] | Retained earnings [Member] |
Balance at Mar. 31, 2012 | $ 107,689 | $ 50,816 | $ 8,265 | $ 4,570 | $ 44,038 | |
Balance (in shares) at Mar. 31, 2012 | 16,196,810 | |||||
Unrealized gain on available-for-sale securities | 718 | $ 718 | ||||
Exercise of stock options, value | $ 1,295 | $ 1,627 | $ (332) | |||
Exercise of stock options, shares | 605,000 | 605,000 | ||||
Repurchase of common stock, value | $ (1,102) | $ (1,102) | ||||
Repurchase of common stock, shares | (414,162) | (414,162) | ||||
Net loss | $ (1,991) | $ (1,991) | ||||
Dividends ($0.30, $0.22 and $0.185 per share for March 31, 2013, March 31, 2014 and March 31, 2015 respectively) | (5,033) | (5,033) | ||||
Balance at Mar. 31, 2013 | 101,576 | $ 52,443 | $ (1,102) | $ 7,933 | $ 5,288 | $ 37,014 |
Balance (in shares) at Mar. 31, 2013 | 16,801,810 | (414,162) | ||||
Unrealized gain on available-for-sale securities | 57 | $ 57 | ||||
Exercise of stock options, value | $ 493 | $ 620 | $ (127) | |||
Exercise of stock options, shares | 230,000 | 230,000 | ||||
Repurchase of common stock, value | $ (1,411) | $ (1,411) | ||||
Repurchase of common stock, shares | (561,409) | (561,409) | ||||
Net loss | $ (7,490) | $ (7,490) | ||||
Dividends ($0.30, $0.22 and $0.185 per share for March 31, 2013, March 31, 2014 and March 31, 2015 respectively) | (3,615) | (3,615) | ||||
Balance at Mar. 31, 2014 | 89,610 | $ 53,063 | $ (2,513) | $ 7,806 | $ 5,345 | $ 25,909 |
Balance (in shares) at Mar. 31, 2014 | 17,031,810 | (975,571) | ||||
Unrealized gain on available-for-sale securities | 33 | $ 33 | ||||
Stock-based compensation | $ 199 | $ 199 | ||||
Exercise of stock options, shares | ||||||
Net loss | $ (2,808) | $ (2,808) | ||||
Dividends ($0.30, $0.22 and $0.185 per share for March 31, 2013, March 31, 2014 and March 31, 2015 respectively) | (2,971) | (2,971) | ||||
Balance at Mar. 31, 2015 | $ 84,063 | $ 53,063 | $ (2,513) | $ 8,005 | $ 5,378 | $ 20,130 |
Balance (in shares) at Mar. 31, 2015 | 17,031,810 | (975,571) |
CONSOLIDATED STATEMENTS OF SHA6
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parentheticals) - $ / shares | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY [Abstract] | |||
Dividends | $ 0.185 | $ 0.22 | $ 0.30 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Cash flows from operating activities | |||
Net loss | $ (2,808) | $ (7,490) | $ (1,991) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 2,824 | 3,621 | 4,219 |
Provision for doubtful accounts, net | 73 | (19) | 214 |
Allowances for obsolete inventories | $ 341 | 134 | 110 |
Impairment of property, plant and equipment | 490 | 197 | |
Gain on sale of property, plant and equipment | $ (766) | (392) | (78) |
Unrealized holding (gain) loss on marketable securities | (954) | $ 865 | (186) |
Gain on sales of marketable securities | $ (102) | (360) | |
Gain on sales of available-for-sale securities | $ (102) | ||
Impairment of goodwill | $ 392 | ||
Stock-based compensation expenses | $ 199 | ||
Deferred income tax | 115 | $ 277 | $ 180 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (1,724) | 384 | 3,971 |
Inventories | (157) | 230 | 4,366 |
Prepaid expenses and other current assets | (646) | (322) | 1,012 |
Accounts payable | 683 | (479) | (2,597) |
Accrued payroll and employee benefits | (163) | 258 | 355 |
Customer deposits | 670 | 526 | (1,003) |
Other accrued liabilities | (36) | (23) | (51) |
Income taxes payable | 81 | (330) | 154 |
Net cash provided by (used in) operating activities | (2,370) | (1,878) | 8,410 |
Cash flows from investing activities | |||
Purchase of property, plant and equipment | (890) | (853) | (951) |
Proceeds from sale of property, plant and equipment, net of transaction costs | 976 | $ 1,086 | 96 |
Purchase of marketable securities | (4,455) | (7,983) | |
Proceeds from sale of marketable securities | $ 1,011 | 2,361 | |
Proceeds from sales of available-for-sale securities | 6,864 | ||
(Increase in) release of fixed deposits maturing over three months | $ 1,347 | $ (2,574) | $ (4,676) |
Increase in fixed deposits maturing over twelve months | (1,601) | ||
Net cash used in investing activities | (3,612) | $ (2,341) | $ (4,289) |
Cash flows from financing activities | |||
Dividends paid | $ (2,971) | (3,615) | (5,357) |
Proceeds from exercise of stock options | 493 | 1,295 | |
Repurchase of common stock | (1,411) | (1,102) | |
Net cash used in financing activities | $ (2,971) | (4,533) | (5,164) |
Net decrease in cash and cash equivalents | (8,953) | (8,752) | (1,043) |
Cash and cash equivalents, beginning of year | 23,278 | 32,030 | 33,073 |
Cash and cash equivalents, end of year | $ 14,325 | $ 23,278 | $ 32,030 |
Cash paid during the year for: | |||
Interest | |||
Income taxes | $ 7 | $ 685 | $ 2 |
Organization and Basis of Finan
Organization and Basis of Financial Statements | 12 Months Ended |
Mar. 31, 2015 | |
Organization and Basis 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. T he principal activities of the Company comprise the manufactur ing and sale s of injection-molded plastic parts and components , electronic products assembl ing and metallic parts manufacturing. T he 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. During the fourth quarter of fiscal 2015, the Company closed down its metallic part business unit and sold all of its assets. The operating results of the metallic part business unit are reported as discontinued operations for all periods presented. See note 9 discontinued operations for further discussion. A |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of consolidatio n - The consolidated financial statements, prepared in accordance with generally accepted accounting principles in the United States of America, include the assets, liabilities, revenues , expenses and cash flows of all subsidiaries. Intercompany balances , transactions and cash flows are eliminated on consolidation Goodwill During fiscal 2014, based on the result of the first step of the goodwill impairment analysis, the Company determined that the fair value of electronic division was less than its carrying value as of March 31, 2014 and, as such, the Company applied the second step of the goodwill impairment test to this segment. Based on the result of the second step of the goodwill impairment test, the Company recorded a $ 392 Cash and cash equivalents Marketable securities - Available-for-sales securities - Inventories - Property, plant and equipment Leasehold land and buildings 30 50 Plant and machinery 5 15 Furniture, fixtures and equipment 4 5 Motor vehicles 3 5 Leasehold improvements 2 5 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 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 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 In evaluation of undiscounted projected cash-flows associated with those assets, the Company assessed that certain of long-lived assets at the reporting date to be less than the fair value and the sum of undiscounted cash flows. Accordingly, the Company impaired that the carrying values of long-lived assets of $ 197 490 nil Revenue recognition Other c omprehensive income - Allowance for doubtful account Year ended March 31, Allowance for doubtful account 2013 2014 2015 Balance at beginning of the year $ 447 $ 574 $ 534 Provision for the year 214 34 216 Bad debt recovery - (53 ) (143 ) Written off during the year (88 ) (21 ) - Exchange difference 1 - - $ 574 $ 534 $ 607 The provision and the bad debt recovery for the years were charged to other income (expenses) in consolidated statements of comprehensive loss. Shipping and handling cost - 704 650 514 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 loss. The exchange rates between the Hong Kong dollars and the U.S. dollar were approximately 7.7502 7.7558 7.7524 6.249 6.196 6.2456 Aggregate net foreign currency transaction gain (loss) included in other income were $ 53 40 (205) Post-retirement and post-employment benefits Stock-based compensation For the years ended March 31, 2013, 2014 and 2015, the Company records stock-based compensation expenses amounted to $ nil nil 199 The fair value of options granted in the years ended March 31, 2013, 2014, and 2015 were estimated using the Binomial option pricing model with the following assumptions: Year ended March 31, 2013 2014 2015 Risk-free interest rate weighted average N/A N/A 2.606 Expected life of options weighted average N/A N/A 10 Stock volatility N/A N/A 44.37 Expected dividend yield N/A N/A 7.8 The Company applied judgment in estimating key assumptions in determining the fair value of the stock options on the date of grant. The Company used historical data to estimate the expected life of options, stock volatility and expected dividend yield. The risk-free interest rate of the option was based on the 10 years U.S. Treasury yield at time of grant. Net loss per share Basic net loss per share and diluted net loss per share calculated in accordance with ASC No. 260, Earnings Per Share, are reconciled as follows (shares in thousands): Year ended March 31, 2013 2014 2015 Net loss attributable to Deswell Industries, Inc: Loss from continuing operations $ (1,542 ) $ (7,079 ) $ (2,460 ) Loss from discontinued operations (449 ) (411 ) (348 ) Net loss attributable to Deswell Industries, Inc. $ (1,991 ) $ (7,490 ) $ (2,808 ) Basic weighted average common shares outstanding 16,467 16,186 16,056 Basic net loss per share: Loss from continuing operations per share $ (0.09 ) $ (0.43 ) $ (0.15 ) Loss from discontinued operations per share (0.03 ) (0.03 ) (0.02 ) Basic net loss per share $ (0.12 ) $ (0.46 ) $ (0.17 ) Year ended March 31, 2013 2014 2015 Basic weighted average common shares outstanding 16,467 16,186 16,056 Effect of dilutive securities Options - - - Diluted weighted average common and potential common shares outstanding 16,467 16,186 16,056 Diluted net loss per share: Loss from continuing operations per share $ (0.09 ) $ (0.43 ) $ (0.15 ) Loss from discontinued operations per share (0.03 ) (0.03 ) (0.02 ) Diluted net loss per share $ (0.12 ) $ (0.46 ) $ (0.17 ) For the years ended March 31, 2013, 2014 and 2015, potential common shares of 668,500 nil 532,000 As of March 31, 2013, 2014 and 2015, 412,000 132,000 nil Use of estimates - Fair value of financial instruments - Fair value measurements - Its 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 appraisa ls. The following table presents fair values for those assets measured at fair value on a non-recurring basis at March 31, 2014 and 2015: March 31, 2014 2015 Long-lived assets Using Level 1 $ $ Using Level 2 Using Level 3 $ $ During the year ended March 31, 2014, the Company impaired its property, plant and equipment by $ 490 490 0 No Discontinued Operations For the year ended March 31, 2015, the Company sold all of the assets of metallic segment. The operating results of metallic segment are reported as discontinued operations in the consolidated statements of comprehensive loss for all periods presented. For the breakdown of the assets and liabilities of metallic segment, please see note 9 discontinued operations. Certain prior year information for metallic segment has been reclassified to present their businesses as discontinued operations accordingly. These items had no impact on the amounts of previously reported total comprehensive loss attributable to Deswell Industries, Inc. or total equity. Recent changes in accounting standa rds I n April 2014 , the FASB issued ASU 201 4 - 08 , Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which change the criteria for reporting discontinued operations while enhancing disclosures in this area. It also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance in U.S. GAAP. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization's operations and financial results. Examples include a disposal of a major geographic area, a major line of business, or a major equity method investment. In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. For public business entities, this ASU should apply prospectively to both of the followings: 1) all disposals (or classifications as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years; and 2) all businesses or nonprofit activities that, on acquisition, are classified as held for sale that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted but only for disposals that have not been reported in financial statements previously issued. The adoption of ASU 201 4-08 is not expected to have material impact on its consolidated financial statements. The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations, financial condition, or cash flows, based on current information. |
Marketable Securities
Marketable Securities | 12 Months Ended |
Mar. 31, 2015 | |
Marketable Securities [Abstract] | |
Marketable Securities | 3. Marketable Securities The Company acquired equity securities listed in Hong Kong. March 31, 2014 2015 Cost $ 5,982 $ 9,539 Market value $ 5,303 $ 9,803 Unrealized gain (loss) for the years ended March 31, 2013, 2014 and 2015 were $ 186 (865 954 Net proceeds from sale of marketable securities for the years ended March 31, 2013, 2014 and 2015 were $ 2,361 nil 1,011 360 nil 102 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. |
Available-for-sale Securities
Available-for-sale Securities | 12 Months Ended |
Mar. 31, 2015 | |
Available-For-Sale Securities [Abstract] | |
Available-for-sale Securities | 4. Available-for-sale Securities The Company acquired corporate bonds issued by Hong Kong listed companies with contractual maturities after 5 years. March 31, 2014 2015 Cost $ 1,614 $ 1,614 Market value $ 1,643 $ 1,676 Unrealized gain for the years ended March 31, 2013, 2014 and 2015 were $ 718 57 33 Net proceeds from sale of available-for-sales securities for the years ended March 31, 2013, 2014 and 2015 were $ 6,864 nil nil 132 nil nil 30 nil nil Other-Than-Temporary Impairment Based on an evaluation of securities that have been in a gain position, the Company did not recognize an other-than-temporary impairment charge as of March 31, 2015. The Company considered various factors which included its intent and ability to hold the underlying securities until its estimated recovery of amortized cost. The other-than-temporary impairment charge for the years ended March 31, 2013, 2014 and 2015 was $ nil nil nil The available-for-sale securities were classified as Level 1 of the hierarchy established under ASC No. 820 because the valuations were based on quoted prices for identical corporate bonds in active markets. |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2015 | |
Inventories [Abstract] | |
Inventories | 5. Inventories Inventories, net of allowances, by major categories are summarized as follows: March 31, 2014 2015 Raw materials $ 5,198 $ 4,963 Work-in-progress 4,289 4,437 Finished goods 1,525 1,428 $ 11,012 $ 10,828 Obsolescence allowance for inventory is as follows: Year ended March 31 2013 2014 2015 Balance at beginning of the year $ 3,711 $ 3,450 $ 3,554 Additional charges 110 134 341 Written off (371 ) (30 ) (8 ) Balance at the end of the year $ 3,450 $ 3,554 $ 3,887 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Mar. 31, 2015 | |
Prepaid Expenses and Other Current Assets [Abstract] | |
Prepaid Expenses and Other Current Assets | 6. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following: March 31, 2014 2015 Value added tax receivable $ 58 $ 120 Rental and utility deposit 32 21 Advance to suppliers 123 254 Prepayment 716 728 Coupon receivable 58 58 Others 487 939 $ 1,474 $ 2,120 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Mar. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 7. Property, Plant and Equipment Property, plant and equipment consist of the following: March 31, 2014 2015 At cost: Leasehold land and buildings $ 33,715 $ 33,715 Plant and machinery 49,693 45,676 Furniture, fixtures and equipment 12,809 12,230 Motor vehicles 1,328 1,600 Leasehold improvements 3,800 2,855 Construction in progress 91 - Impairment (4,881 ) (4,779 ) 96,555 91,297 Less: accumulated depreciation and amortization (57,813 ) (54,699 ) Net book value $ 38,742 $ 36,598 Included in furniture, fixtures and equipment is computer software with net values of $ 163 106 Cost of leasehold land and buildings consist of the following: March 31, 2014 2015 Land use right of state-owned land and buildings erected thereon (a) $ 29,534 $ 29,534 Long term leased land and buildings erected thereon (b) 4,181 4,181 $ 33,715 $ 33,715 (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 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 2053 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, 201 5 , 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 $ 2,434 2,033 Included in leasehold land and buildings March 31, 2014 2015 Cost $ 2,969 $ 2,513 Less: accumulated depreciation and amortization (535 ) (480 ) Net book value $ 2,434 $ 2,033 During the years ended March 31, 2013, 2014 and 2015, the Company impaired its property, plant and equipment by $ 197 490 nil 4,219 3,621 2,824 |
Goodwill
Goodwill | 12 Months Ended |
Mar. 31, 2015 | |
Goodwill [Abstract] | |
Goodwill | 8. Goodwill There was no impairment in goodwill for the year ended March 31, 2013. During the year ended March 31, 2014, the Company evaluated and identified an impairment loss of goodwill of $ 392 Acquisitions March 31, 2014 2015 Electronic division $ 393 $ 393 Metallic division 317 317 Foreign exchange differences (1 ) (1 ) Impairment electronic division (392 ) (392 ) Impairment metallic division (317 ) (317 ) $ - $ - |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Mar. 31, 2015 | |
Discontinued Operations [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 9. Discontinued Operations During the fourth quarter of fiscal 2015, the Company closed down its metallic part business unit and sold all of its assets. The operating results of the metallic part business unit are reported as discontinued operations for all periods presented. We had historically reported the results of the metallic part business unit as a separate segment. The continuing cash flows subsequent to its closure were not significant. The results of the discontinued operations of metallic part for the fiscal years ended March 31, 2013, 2014 and 2015 were as follows: Years ended March 31, 2013 2014 2015 Net sales $ 692 $ - $ 1 Loss from discontinued operations, before income taxes $ (449 ) $ (411 ) $ (348 ) Income taxes - - - Loss from discontinued operations, after income taxes $ $ (449 ) $ (411 ) $ (348 ) The assets and liabilities of metallic parts which are reported as discontinued operations were as follows: March 31, 2014 2015 ASSETS Current assets: Inventories $ 321 $ - Prepaid expenses and other current assets 20 - Total current assets 341 - Property, plant and equipment, net 57 - Total assets $ 398 $ - LIABILITIES Current liabilities: Accounts payable $ 136 $ $ 22 Accrued payroll and employee benefits 142 - Other accrued liabilities 11 3 Total current liabilities $ 289 $ 25 In the consolidated statements of cash flows, the activities of metallic part were included along with our activities from continuing operations. |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Mar. 31, 2015 | |
Other Accrued Liabilities [Abstract] | |
Other Accrued Liabilities | 10. Other Accrued Liabilities Other accrued liabilities consist of the following: March 31, 2014 2015 Accrued expenses $ 571 $ 577 Value added tax payable 2 5 Others 664 619 $ 1,237 $ 1,201 |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | 11. Income Taxes The components of loss before income taxes are as follows: Year ended March 31, 2013 2014 2015 Hong Kong $ (2 ) $ (2 ) $ (2 ) Macao 1,251 536 292 PRC (2,463 ) (6,989 ) (2,543 ) Loss before income taxes from continuing operations (1,214 ) (6,455 ) (2,253 ) Loss before income taxes from discontinued operations - PRC (449 ) (411 ) (348 ) Loss before income taxes $ (1,663 ) $ (6,866 ) $ (2,601 ) 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% (2013: 16.5%, 2014: 16.5%) to the estimated taxable income arising in or derived from Hong Kong, if applicable. From January 1, 2008, with the effect of the new PRC Income Tax Law, the standard income tax rate for all subsidiaries operating in the PRC has been reduced from the rate of 33% to 25%. In September 2007, Jetcrown Industrial (Dongguan) Limited (JIDL) (a subsidiary of the Company) had revised its first and second tax exemption year from the calendar years ended December 31, 2004 and 2005 respectively, to the calendar years ended December 31, 2002 and 2003 respectively. The revision was upon a tax reassessment by the PRC tax authorities during the year ended March 31, 2007 regarding the commencement year of exemption and inter-company sales pricing issues. The tax rate applicable for JIDL for calendar years 2002 to 2006 was 24%. JIDL was entitled to a full tax exemption for each of the calendar years ended December 31, 2002 and 2003 and a 50% exemption for each of the calendar years ended December 31, 2004, 2005 and 2006. An aggregate amount of $ 450 154 92 166 38 101 Under applicable PRC tax laws and regulations, arrangements and transactions among related parties may be subject to audit or scrutiny by the PRC tax authorities within ten years after the taxable year when the arrangements or transactions are conducted. The Company is subject to the applicable transfer pricing rules in the PRC in connection to the transactions between its subsidiaries located inside and outside PRC. 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, 2015 includes the deemed profit tax estimated by the management based on the Contemporaneous Documentations. 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. There is no material impact on the adoption of ASC 740. The Company classifies interest and/or penalties related to unrecognized tax benefits as a component of income tax provisions; however, as of March 31, 2015, there is no interest and penalties related to uncertain tax positions. The provision for income taxes consists of the following: Year ended March 31, 2013 2014 2015 Current tax - PRC $ 150 $ 347 $ 92 Deferred tax 178 277 115 $ 328 $ 624 $ 207 Reconciliation between the provision for income taxes computed by applying the statutory tax rate in the PRC to loss before income taxes and the actual provision for income taxes is as follows: Year ended March 31, 2013 2014 2015 Provision for income taxes at statutory tax rate in the PRC $ (416 ) $ (1,717 ) $ (650 ) Effect of income for which no income tax is chargeable (21 ) (296 ) (441 ) Effect of expense for which no income tax is deductible 936 2,312 1,209 Net change in valuation allowances (171 ) 175 89 Under provision of income tax in previous years - 150 - Effective tax $ 328 $ 624 $ 207 The net deferred income tax consists of the following: March 31, 2014 2015 Deferred income tax assets $ - $ - Deferred income tax liabilities (691 ) (804 ) Net deferred income tax liabilities $ (691 ) $ (804 ) The components of net deferred income tax are as follows: March 31, 2014 2015 Deferred income tax assets (liabilities) : Net operating loss carry forwards $ 123 $ 127 Provision of employee benefits 337 320 Depreciation and amortization 834 955 Revenue and cost of sales recognized for financial reporting purpose before being recognized for tax purpose (1,184 ) (1,225 ) Others (41 ) (135 ) Less: Valuation allowances (760 ) (846 ) Net deferred income tax liabilities $ (691 ) $ (804 ) A significant portion of the deferred income tax assets recognized relates to net operating loss and credit carry forwards. The Company operates through the PRC entities and the valuation allowance is considered on each individual basis. 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. As at March 31, 2015, the unused tax losses, amounted to $ 217 179 69 23 19 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, 2015. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 12. 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 loss were $ 160 175 177 At March 31, 2015, the Company was obligated under operating leases requiring minimum rentals as follows: Year ending March 31, 2016 $ 60 Year ending March 31, 2017 9 Total minimum lease payments $ 69 We have non-cancellable agreements to lease our factory buildings to tenants under operating lease, which provide for payments through 2016. At March 31, 2015, the minimum future rental income to be received is as follows: Year ending March 31, 2016 $ 219 Total minimum future rental income $ 219 At March 31, 2015, the Company had capital commitments for purchase of plant and machinery, and leasehold improvement totaling $ 30 |
Employee Benefits
Employee Benefits | 12 Months Ended |
Mar. 31, 2015 | |
Employee Benefits [Abstract] | |
Employee Benefits | 13. 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 $ 306 441 370 8 14 |
Stock Option Plan
Stock Option Plan | 12 Months Ended |
Mar. 31, 2015 | |
Stock Option Plan [Abstract] | |
Stock Option Plan | 14. 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 1,012,500 549,000 1,561,500 1,125,000 900,000 500,000 1,400,000 1,800,000 800,000 2,600,000 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 3,500,000 As of March 31, 2015, options to purchase an aggregate of 5,669,000 A summary of the option activity (with weighted average prices per option) is as follows: Year ended March 31, 2013 2014 2015 Number Weighted average Number Weighted average Number Weighted average Outstanding at beginning of the year 1,685,500 $ 5.44 1,080,500 $ 7.29 132,000 $ 2.14 Granted during the year - - - - 400,000 2.09 Exercised during the year (605,000 ) 2.14 (230,000 ) 2.14 - - Cancelled or expired - - (718,500 ) 9.88 - - Outstanding and exercisable at the end of the year 1,080,500 $ 7.29 132,000 $ 2.14 532,000 $ 2.10 Range of exercise price per share $ 1.34 14.10 $ 2.09 2.14 $ 2.09 2.14 The weighted average fair value of options granted for the year ended March 31, 2015 was $ 0.50 392 81 nil nil nil The number of options cancelled for the years ended March 31, 2013, 2014 and 2015 were nil, 718,500 and nil. The weighted average remaining contractual life of the share options outstanding at March 31, 2015 was 8.7 1,636,000 1,236,000 |
Stock Buyback Plan
Stock Buyback Plan | 12 Months Ended |
Mar. 31, 2015 | |
Stock Buyback Plan [Abstract] | |
Stock Buyback Plan | 15. Stock Buyback Plan On March 14, 2012, the Company's B oard of D irectors 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 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. During the year s ended March 31, 2013 and 2014, 414,162 561,409 1,102 and $ 1,411 at an average price of $ 2.66 and $ 2.51 per share, respectively. The Company did not make any repurchase of common stock during the year ended March 31, 2015. |
Other income (expenses), net
Other income (expenses), net | 12 Months Ended |
Mar. 31, 2015 | |
Other income and (expenses) [Abstract] | |
Other income and (expenses) | 16. Other income (expenses), net O ther income (expenses), net Year ended March 31, 2013 2014 2015 Gain on disposal of property, plant and equipment $ 59 $ 375 $ 262 Exchange gain (loss) 53 40 (205 ) Provision for doubtful accounts, net (214 ) 19 (73 ) Impairment of property, plant and equipment (197 ) (490 ) Impairment of goodwill (392 ) Others 532 234 109 Other income (expenses), net from continuing operations $ 233 $ (214 ) $ 93 |
Non-operating income, net
Non-operating income, net | 12 Months Ended |
Mar. 31, 2015 | |
Non-operating income, net [Abstract] | |
Non-operating income, net | 17. Non-operating income, net Non-operating income, net consist of the following: Year ended March 31, 2013 2014 2015 Dividend income from marketable securities $ 218 $ 233 $ 238 Interest income from available-for-sales securities 718 126 126 Interest income from bank deposits 501 596 535 Unrealized gain (loss) from marketable securities 186 (865 ) 954 Realized gain from sales of marketable securities 360 102 Realized gain from sales of available-for-sales securities, net 102 Rental income 260 600 Others (29 ) 29 (2 ) Non-operating income, net from continuing operations $ 2,056 $ 379 $ 2,553 |
Operating Risk
Operating Risk | 12 Months Ended |
Mar. 31, 2015 | |
Operating Risk [Abstract] | |
Operating Risk | 18. Operating Risk Concentrations of Credit Risk and Major Customers Details of customers accounting for % or more of total net sales for each of the years ended March 31, 2013, and are as follows: Percentage of net sales Year ended March 31, 2013 2014 2015 VTech Telecommunications Ltd. 13.0 % 15.8 % 16.5 % Loud Technologies, Inc. * 11.7 % 13.7 % Lenbrook Industries Ltd. 11.1 % 15.7 % * * 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, 2014 and 2015, respectively, are as follows: Percentage of accounts receivable at 2014 2015 VTech Telecommunications Ltd 23.0 % 26.1 % There were no accounts receivable written off during the years ended March 31, 2013, 2014 and 2015, respectively. There were provision for (reversal of) doubtful accounts of $ 214 19 73 88 21 nil 534 607 Concentrations of Suppliers Country risk Investment price risk |
Segment Information
Segment Information | 12 Months Ended |
Mar. 31, 2015 | |
Segment Information [Abstract] | |
Segment Information | 19. Segment Information The Company has three reportable segments: plastic injection molding, electronic products assembling and metallic parts manufacturing. 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. During the fourth quarter of fiscal 2015, the Company completed its exit from metallic parts business. See note 9 discontinued operations for details. 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, 2013, 2014 and 2015 are as follows: Year ended March 31, 2013 2014 2015 Net Intersegment Income (loss) before income tax Net Intersegment Income (loss) before income tax Net Intersegment Income (loss) before income tax Segment: Injection molded plastic parts $ 27,775 $ 1,050 $ (1,784 ) $ 19,918 $ 580 $ (4,517 ) $ 20,206 $ (434 ) $ (341 ) Electronic products 26,740 83 570 21,684 90 (1,938 ) 18,409 (105 ) (1,912 ) Metallic parts (Discontinued in fiscal 2015) 692 - (449 ) - - (411 ) 1 - (348 ) Segment total $ 55,207 $ 1,133 $ (1,663 ) $ 41,602 $ 670 $ (6,866 ) $ 38,616 $ (539 ) $ (2,601 ) Reconciliation to consolidated totals: Sales eliminations (1,133 ) (1,133 ) - (670 ) (670 ) - (539 ) 539 - Consolidated totals: Net sales $ 54,074 $ - $ 40,932 $ - $ 38,077 $ - Loss before income taxes $ (1,663 ) $ (6,866 ) $ (2,601 ) Year ended March 31, 2013 2014 2015 Interest Interest Interest Interest Interest Interest Segment: Injection molded plastic parts $ 415 $ - $ 495 $ - $ 509 $ - Electronic products 86 - 101 - 26 - Metallic parts (Discontinued in fiscal 2015) - - - - - - Consolidated total $ 501 $ - $ 596 $ - $ 535 $ - Year ended March 31, 2013 2014 2015 Identifiable Capital Depreciation Identifiable Capital Depreciation Identifiable Capital Depreciation Segment: Injection molded plastic parts $ 80,804 $ 670 $ 3,677 $ 74,328 $ 200 $ 3,181 $ 73,829 $ 550 $ 2,384 Electronic products 30,760 281 537 25,911 648 399 22,610 340 415 Metallic parts (Discontinued in fiscal 2015) 605 - 5 397 5 41 - - 25 Segment totals $ 112,169 $ 951 $ 4,219 $ 100,636 $ 853 $ 3,621 $ 96,439 $ 890 $ 2,824 Reconciliation to consolidated totals: Elimination of receivables from intersegments 4 - - - - - - - - Goodwill allocated to electronic products segment 392 - - - - - - - - Consolidated totals $ 112,565 $ 951 $ 4,219 $ 100,636 $ 853 $ 3,621 $ 96,439 $ 890 $ 2,824 The Company's sales are coordinated through the Macao subsidiaries and a breakdown of sales by destination is as follows: Year ended March 31, 2013 2014 2015 Net sales United States of America $ 16,462 $ 11,081 $ 9,910 PRC 22,504 15,862 16,119 United Kingdom 1,908 1,721 1,023 Hong Kong 3,813 3,550 5,505 Europe 5,524 6,197 3,501 Others 3,171 2,521 2,018 Net sales from continuing operations 53,382 40,932 38,076 Net sales from discontinued operations 692 - 1 Total net sales $ 54,074 $ 40,932 $ 38,077 The location of the Company's identifiable assets is as follows: March 31, 2014 2015 Hong Kong and Macao $ 31,078 $ 29,444 PRC 69,558 66,995 Total identifiable assets 100,636 96,439 Goodwill - - Total assets $ 100,636 $ 96,439 |
Condensed Financial Information
Condensed Financial Information of Deswell Industries, Inc. | 12 Months Ended |
Mar. 31, 2015 | |
Condensed Financial Information of Deswell Industries, Inc. [Abstract] | |
Condensed Financial Information of Deswell Industries, Inc. | 20. 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 $ 77,255 479 76,674 479 Balance sheets March 31, 2014 2015 Assets Current assets: Cash and cash equivalents $ 1,739 $ 1,369 Prepaid expenses and other current assets 76 76 Amounts due from subsidiaries 39,589 35,633 Total current assets 41,404 37,078 Investments in subsidiaries 49,447 48,360 Property, plant and equipment-net 143 56 Total assets $ 90,994 $ 85,494 Liabilities and shareholders' equity Current liabilities: Accrued payroll and employee benefits $ 1,315 $ 1,315 Other accrued liabilities 69 116 Total current liabilities 1,384 1,431 Total shareholders' equity 89,610 84,063 Total liabilities and shareholders' equity $ 90,994 $ 85,494 Statements of comprehensive loss Year ended March 31, 2013 2014 2015 Equity in earnings (loss) of subsidiaries $ 394 $ (5,213 ) $ (1,120 ) Operating expenses 2,385 2,277 1,688 Loss before income taxes (1,991 ) (7,490 ) (2,808 ) Income taxes - - - Net loss (1,991 ) (7,490 ) (2,808 ) Share of other comprehensive income of subsidiaries 718 57 33 Total comprehensive loss $ (1,273 ) $ (7,433 ) $ (2,775 ) Statements of cash flows Year ended March 31, 2013 2014 2015 Cash flows from operating activities Net loss $ (1,991 ) $ (7,490 ) $ (2,808 ) Adjustments to reconcile net loss to net cash provided by operating activities: Equity in (earnings) loss of subsidiaries (394 ) 5,213 1,120 Depreciation 87 87 87 Stock-based compensation expenses - - 199 Changes in operating assets and liabilities: Prepaid expenses and other current assets (53) 5 - Amounts due from subsidiaries 6,756 7,533 3,956 Accrued payroll and employee benefits 616 561 - Other accrued liabilities 84 (30) 47 Net cash provided by operating activities 5,105 5,879 2,601 Cash flows from investing activities Purchase of property, plant and equipment - - - Net cash used in investing activities - - - Cash flows from financing activities Dividends paid (5,357 ) (3,615 ) (2,971 ) Exercise of stock options 1,295 493 - Repurchase of common stock (1,102) (1,411 ) - Net cash used in financing activities (5,164 ) (4,533 ) (2,971 ) Net (decrease) increase in cash and cash equivalents (59) 1,346 (370 ) Cash and cash equivalents, beginning of year 452 393 1,739 Cash and cash equivalents, end of year $ 393 $ 1,739 $ 1,369 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 loss. The subsidiaries paid dividends of $nil, $nil and $nil to Deswell Industries, Inc. for the years ended March 31, 2013, 2014 and 2015, 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, 2013, 2014 and 2015, related party transactions mainly composed of $ 120 120 120 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Mar. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidatio n - The consolidated financial statements, prepared in accordance with generally accepted accounting principles in the United States of America, include the assets, liabilities, revenues , expenses and cash flows of all subsidiaries. Intercompany balances , transactions and cash flows are eliminated on consolidation |
Goodwill | Goodwill During fiscal 2014, based on the result of the first step of the goodwill impairment analysis, the Company determined that the fair value of electronic division was less than its carrying value as of March 31, 2014 and, as such, the Company applied the second step of the goodwill impairment test to this segment. Based on the result of the second step of the goodwill impairment test, the Company recorded a $ 392 |
Cash and cash equivalents | Cash and cash equivalents |
Marketable securities | Marketable securities - |
Available-for-sale securities | Available-for-sales securities - |
Inventories | Inventories - |
Property, plant and equipment | Property, plant and equipment Leasehold land and buildings 30 50 Plant and machinery 5 15 Furniture, fixtures and equipment 4 5 Motor vehicles 3 5 Leasehold improvements 2 5 |
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 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 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 In evaluation of undiscounted projected cash-flows associated with those assets, the Company assessed that certain of long-lived assets at the reporting date to be less than the fair value and the sum of undiscounted cash flows. Accordingly, the Company impaired that the carrying values of long-lived assets of $ 197 490 nil |
Revenue recognition | Revenue recognition |
Other comprehensive income | Other c omprehensive income - |
Allowance for doubtful account | Allowance for doubtful account Year ended March 31, Allowance for doubtful account 2013 2014 2015 Balance at beginning of the year $ 447 $ 574 $ 534 Provision for the year 214 34 216 Bad debt recovery - (53 ) (143 ) Written off during the year (88 ) (21 ) - Exchange difference 1 - - $ 574 $ 534 $ 607 The provision and the bad debt recovery for the years were charged to other income (expenses) in consolidated statements of comprehensive loss. |
Shipping and handling cost | Shipping and handling cost - 704 650 514 |
Income taxes | 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 | 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 loss. The exchange rates between the Hong Kong dollars and the U.S. dollar were approximately 7.7502 7.7558 7.7524 6.249 6.196 6.2456 Aggregate net foreign currency transaction gain (loss) included in other income were $ 53 40 (205) |
Post-retirement and post-employment benefits | Post-retirement and post-employment benefits |
Stock-based compensation | Stock-based compensation For the years ended March 31, 2013, 2014 and 2015, the Company records stock-based compensation expenses amounted to $ nil nil 199 The fair value of options granted in the years ended March 31, 2013, 2014, and 2015 were estimated using the Binomial option pricing model with the following assumptions: Year ended March 31, 2013 2014 2015 Risk-free interest rate weighted average N/A N/A 2.606 Expected life of options weighted average N/A N/A 10 Stock volatility N/A N/A 44.37 Expected dividend yield N/A N/A 7.8 The Company applied judgment in estimating key assumptions in determining the fair value of the stock options on the date of grant. The Company used historical data to estimate the expected life of options, stock volatility and expected dividend yield. The risk-free interest rate of the option was based on the 10 years U.S. Treasury yield at time of grant. |
Net loss per share | Net loss per share Basic net loss per share and diluted net loss per share calculated in accordance with ASC No. 260, Earnings Per Share, are reconciled as follows (shares in thousands): Year ended March 31, 2013 2014 2015 Net loss attributable to Deswell Industries, Inc: Loss from continuing operations $ (1,542 ) $ (7,079 ) $ (2,460 ) Loss from discontinued operations (449 ) (411 ) (348 ) Net loss attributable to Deswell Industries, Inc. $ (1,991 ) $ (7,490 ) $ (2,808 ) Basic weighted average common shares outstanding 16,467 16,186 16,056 Basic net loss per share: Loss from continuing operations per share $ (0.09 ) $ (0.43 ) $ (0.15 ) Loss from discontinued operations per share (0.03 ) (0.03 ) (0.02 ) Basic net loss per share $ (0.12 ) $ (0.46 ) $ (0.17 ) Year ended March 31, 2013 2014 2015 Basic weighted average common shares outstanding 16,467 16,186 16,056 Effect of dilutive securities Options - - - Diluted weighted average common and potential common shares outstanding 16,467 16,186 16,056 Diluted net loss per share: Loss from continuing operations per share $ (0.09 ) $ (0.43 ) $ (0.15 ) Loss from discontinued operations per share (0.03 ) (0.03 ) (0.02 ) Diluted net loss per share $ (0.12 ) $ (0.46 ) $ (0.17 ) For the years ended March 31, 2013, 2014 and 2015, potential common shares of 668,500 nil 532,000 As of March 31, 2013, 2014 and 2015, 412,000 132,000 nil |
Use of estimates | Use of estimates - |
Fair value of financial instruments | Fair value of financial instruments - |
Fair value measurements | Fair value measurements - Its 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 appraisa ls. The following table presents fair values for those assets measured at fair value on a non-recurring basis at March 31, 2014 and 2015: March 31, 2014 2015 Long-lived assets Using Level 1 $ $ Using Level 2 Using Level 3 $ $ During the year ended March 31, 2014, the Company impaired its property, plant and equipment by $ 490 490 0 No |
Discontinued Operations | Discontinued Operations For the year ended March 31, 2015, the Company sold all of the assets of metallic segment. The operating results of metallic segment are reported as discontinued operations in the consolidated statements of comprehensive loss for all periods presented. For the breakdown of the assets and liabilities of metallic segment, please see note 9 discontinued operations. Certain prior year information for metallic segment has been reclassified to present their businesses as discontinued operations accordingly. These items had no impact on the amounts of previously reported total comprehensive loss attributable to Deswell Industries, Inc. or total equity. |
Recent changes in accounting standards | Recent changes in accounting standa rds I n April 2014 , the FASB issued ASU 201 4 - 08 , Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which change the criteria for reporting discontinued operations while enhancing disclosures in this area. It also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance in U.S. GAAP. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization's operations and financial results. Examples include a disposal of a major geographic area, a major line of business, or a major equity method investment. In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. For public business entities, this ASU should apply prospectively to both of the followings: 1) all disposals (or classifications as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years; and 2) all businesses or nonprofit activities that, on acquisition, are classified as held for sale that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted but only for disposals that have not been reported in financial statements previously issued. The adoption of ASU 201 4-08 is not expected to have material impact on its consolidated financial statements. The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations, financial condition, or cash flows, based on current information. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Property, Plant and Equipment | Leasehold land and buildings 30 50 Plant and machinery 5 15 Furniture, fixtures and equipment 4 5 Motor vehicles 3 5 Leasehold improvements 2 5 |
Schedule of Allowance for Doubtful Account | Year ended March 31, Allowance for doubtful account 2013 2014 2015 Balance at beginning of the year $ 447 $ 574 $ 534 Provision for the year 214 34 216 Bad debt recovery - (53 ) (143 ) Written off during the year (88 ) (21 ) - Exchange difference 1 - - $ 574 $ 534 $ 607 |
Schedule of Assumptions Used In Valuing Stock Options | Year ended March 31, 2013 2014 2015 Risk-free interest rate weighted average N/A N/A 2.606 Expected life of options weighted average N/A N/A 10 Stock volatility N/A N/A 44.37 Expected dividend yield N/A N/A 7.8 |
Schedule of Net Loss Per Share | Year ended March 31, 2013 2014 2015 Net loss attributable to Deswell Industries, Inc: Loss from continuing operations $ (1,542 ) $ (7,079 ) $ (2,460 ) Loss from discontinued operations (449 ) (411 ) (348 ) Net loss attributable to Deswell Industries, Inc. $ (1,991 ) $ (7,490 ) $ (2,808 ) Basic weighted average common shares outstanding 16,467 16,186 16,056 Basic net loss per share: Loss from continuing operations per share $ (0.09 ) $ (0.43 ) $ (0.15 ) Loss from discontinued operations per share (0.03 ) (0.03 ) (0.02 ) Basic net loss per share $ (0.12 ) $ (0.46 ) $ (0.17 ) Year ended March 31, 2013 2014 2015 Basic weighted average common shares outstanding 16,467 16,186 16,056 Effect of dilutive securities Options - - - Diluted weighted average common and potential common shares outstanding 16,467 16,186 16,056 Diluted net loss per share: Loss from continuing operations per share $ (0.09 ) $ (0.43 ) $ (0.15 ) Loss from discontinued operations per share (0.03 ) (0.03 ) (0.02 ) Diluted net loss per share $ (0.12 ) $ (0.46 ) $ (0.17 ) |
Schedule of Fair Value of Assets Measured on a Nonrecurring Basis | March 31, 2014 2015 Long-lived assets Using Level 1 $ $ Using Level 2 Using Level 3 $ $ |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Marketable Securities [Abstract] | |
Schedule of Marketable Securities | March 31, 2014 2015 Cost $ 5,982 $ 9,539 Market value $ 5,303 $ 9,803 |
Available-for-sale Securities (
Available-for-sale Securities (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Available-For-Sale Securities [Abstract] | |
Schedule of Available-For-Sale Securities | March 31, 2014 2015 Cost $ 1,614 $ 1,614 Market value $ 1,643 $ 1,676 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Inventories [Abstract] | |
Schedule of Inventories, Net of Allowances | March 31, 2014 2015 Raw materials $ 5,198 $ 4,963 Work-in-progress 4,289 4,437 Finished goods 1,525 1,428 $ 11,012 $ 10,828 |
Schedule of Obsolescence Allowance for Inventory | Year ended March 31 2013 2014 2015 Balance at beginning of the year $ 3,711 $ 3,450 $ 3,554 Additional charges 110 134 341 Written off (371 ) (30 ) (8 ) Balance at the end of the year $ 3,450 $ 3,554 $ 3,887 |
Prepaid Expenses and Other Cu33
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Prepaid Expenses and Other Current Assets [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | March 31, 2014 2015 Value added tax receivable $ 58 $ 120 Rental and utility deposit 32 21 Advance to suppliers 123 254 Prepayment 716 728 Coupon receivable 58 58 Others 487 939 $ 1,474 $ 2,120 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consist of the following: March 31, 2014 2015 At cost: Leasehold land and buildings $ 33,715 $ 33,715 Plant and machinery 49,693 45,676 Furniture, fixtures and equipment 12,809 12,230 Motor vehicles 1,328 1,600 Leasehold improvements 3,800 2,855 Construction in progress 91 - Impairment (4,881 ) (4,779 ) 96,555 91,297 Less: accumulated depreciation and amortization (57,813 ) (54,699 ) Net book value $ 38,742 $ 36,598 Included in furniture, fixtures and equipment is computer software with net values of $ 163 106 Cost of leasehold land and buildings consist of the following: March 31, 2014 2015 Land use right of state-owned land and buildings erected thereon (a) $ 29,534 $ 29,534 Long term leased land and buildings erected thereon (b) 4,181 4,181 $ 33,715 $ 33,715 (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 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 2053 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, 201 5 , 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 $ 2,434 2,033 Included in leasehold land and buildings March 31, 2014 2015 Cost $ 2,969 $ 2,513 Less: accumulated depreciation and amortization (535 ) (480 ) Net book value $ 2,434 $ 2,033 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Goodwill [Abstract] | |
Schedule of Goodwill | Acquisitions March 31, 2014 2015 Electronic division $ 393 $ 393 Metallic division 317 317 Foreign exchange differences (1 ) (1 ) Impairment electronic division (392 ) (392 ) Impairment metallic division (317 ) (317 ) $ - $ - |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Discontinued Operations [Abstract] | |
Schedule of Discontinued Operations | March 31, 2014 2015 ASSETS Current assets: Inventories $ 321 $ - Prepaid expenses and other current assets 20 - Total current assets 341 - Property, plant and equipment, net 57 - Total assets $ 398 $ - LIABILITIES Current liabilities: Accounts payable $ 136 $ $ 22 Accrued payroll and employee benefits 142 - Other accrued liabilities 11 3 Total current liabilities $ 289 $ 25 Years ended March 31, 2013 2014 2015 Net sales $ 692 $ - $ 1 Loss from discontinued operations, before income taxes $ (449 ) $ (411 ) $ (348 ) Income taxes - - - Loss from discontinued operations, after income taxes $ $ (449 ) $ (411 ) $ (348 ) |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Other Accrued Liabilities [Abstract] | |
Schedule of Other Accrued Liabilities | March 31, 2014 2015 Accrued expenses $ 571 $ 577 Value added tax payable 2 5 Others 664 619 $ 1,237 $ 1,201 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Income Taxes [Abstract] | |
Components of Loss Before Income Taxes | Year ended March 31, 2013 2014 2015 Hong Kong $ (2 ) $ (2 ) $ (2 ) Macao 1,251 536 292 PRC (2,463 ) (6,989 ) (2,543 ) Loss before income taxes from continuing operations (1,214 ) (6,455 ) (2,253 ) Loss before income taxes from discontinued operations - PRC (449 ) (411 ) (348 ) Loss before income taxes $ (1,663 ) $ (6,866 ) $ (2,601 ) |
Schedule of Provision for Income Taxes | Year ended March 31, 2013 2014 2015 Current tax - PRC $ 150 $ 347 $ 92 Deferred tax 178 277 115 $ 328 $ 624 $ 207 |
Schedule of Income Tax Rate Reconciliation | Year ended March 31, 2013 2014 2015 Provision for income taxes at statutory tax rate in the PRC $ (416 ) $ (1,717 ) $ (650 ) Effect of income for which no income tax is chargeable (21 ) (296 ) (441 ) Effect of expense for which no income tax is deductible 936 2,312 1,209 Net change in valuation allowances (171 ) 175 89 Under provision of income tax in previous years - 150 - Effective tax $ 328 $ 624 $ 207 |
Components of Deferred Income Tax | March 31, 2014 2015 Deferred income tax assets $ - $ - Deferred income tax liabilities (691 ) (804 ) Net deferred income tax liabilities $ (691 ) $ (804 ) The components of net deferred income tax are as follows: March 31, 2014 2015 Deferred income tax assets (liabilities) : Net operating loss carry forwards $ 123 $ 127 Provision of employee benefits 337 320 Depreciation and amortization 834 955 Revenue and cost of sales recognized for financial reporting purpose before being recognized for tax purpose (1,184 ) (1,225 ) Others (41 ) (135 ) Less: Valuation allowances (760 ) (846 ) Net deferred income tax liabilities $ (691 ) $ (804 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Schedule Of Future Minimum Payments under Operating Lease Agreements | At March 31, 2015, the Company was obligated under operating leases requiring minimum rentals as follows: Year ending March 31, 2016 $ 60 Year ending March 31, 2017 9 Total minimum lease payments $ 69 |
Schedule of Future Rental Income | We have non-cancellable agreements to lease our factory buildings to tenants under operating lease, which provide for payments through 2016. At March 31, 2015, the minimum future rental income to be received is as follows: Year ending March 31, 2016 $ 219 Total minimum future rental income $ 219 |
Stock Option Plan (Tables)
Stock Option Plan (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Stock Option Plan [Abstract] | |
Schedule of Stock-Based Payment Activity | Year ended March 31, 2013 2014 2015 Number Weighted average Number Weighted average Number Weighted average Outstanding at beginning of the year 1,685,500 $ 5.44 1,080,500 $ 7.29 132,000 $ 2.14 Granted during the year - - - - 400,000 2.09 Exercised during the year (605,000 ) 2.14 (230,000 ) 2.14 - - Cancelled or expired - - (718,500 ) 9.88 - - Outstanding and exercisable at the end of the year 1,080,500 $ 7.29 132,000 $ 2.14 532,000 $ 2.10 Range of exercise price per share $ 1.34 14.10 $ 2.09 2.14 $ 2.09 2.14 |
Other income (expenses), net (T
Other income (expenses), net (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Other income and (expenses) [Abstract] | |
Schedule of Other Income and (Expenses) | Year ended March 31, 2013 2014 2015 Gain on disposal of property, plant and equipment $ 59 $ 375 $ 262 Exchange gain (loss) 53 40 (205 ) Provision for doubtful accounts, net (214 ) 19 (73 ) Impairment of property, plant and equipment (197 ) (490 ) Impairment of goodwill (392 ) Others 532 234 109 Other income (expenses), net from continuing operations $ 233 $ (214 ) $ 93 |
Non-operating income, net (Tabl
Non-operating income, net (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Non-operating income, net [Abstract] | |
Schedule of Non-operating Income, Net | Year ended March 31, 2013 2014 2015 Dividend income from marketable securities $ 218 $ 233 $ 238 Interest income from available-for-sales securities 718 126 126 Interest income from bank deposits 501 596 535 Unrealized gain (loss) from marketable securities 186 (865 ) 954 Realized gain from sales of marketable securities 360 102 Realized gain from sales of available-for-sales securities, net 102 Rental income 260 600 Others (29 ) 29 (2 ) Non-operating income, net from continuing operations $ 2,056 $ 379 $ 2,553 |
Operating Risk (Tables)
Operating Risk (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
10% or more of total net sales [Member] | |
Concentration Risk [Line Items] | |
Schedule of Operating Risks | Percentage of net sales Year ended March 31, 2013 2014 2015 VTech Telecommunications Ltd. 13.0 % 15.8 % 16.5 % Loud Technologies, Inc. * 11.7 % 13.7 % Lenbrook Industries Ltd. 11.1 % 15.7 % * * Less than 10% Sales to the above customers relate to both injection-molded plastic parts and electronic products. |
Accounts Receivable [Member] | |
Concentration Risk [Line Items] | |
Schedule of Operating Risks | Percentage of accounts receivable at 2014 2015 VTech Telecommunications Ltd 23.0 % 26.1 % |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Segment Information [Abstract] | |
Schedule of Contributions of Profitability Information For Reportable Segments | Year ended March 31, 2013 2014 2015 Net Intersegment Income (loss) before income tax Net Intersegment Income (loss) before income tax Net Intersegment Income (loss) before income tax Segment: Injection molded plastic parts $ 27,775 $ 1,050 $ (1,784 ) $ 19,918 $ 580 $ (4,517 ) $ 20,206 $ (434 ) $ (341 ) Electronic products 26,740 83 570 21,684 90 (1,938 ) 18,409 (105 ) (1,912 ) Metallic parts (Discontinued in fiscal 2015) 692 - (449 ) - - (411 ) 1 - (348 ) Segment total $ 55,207 $ 1,133 $ (1,663 ) $ 41,602 $ 670 $ (6,866 ) $ 38,616 $ (539 ) $ (2,601 ) Reconciliation to consolidated totals: Sales eliminations (1,133 ) (1,133 ) - (670 ) (670 ) - (539 ) 539 - Consolidated totals: Net sales $ 54,074 $ - $ 40,932 $ - $ 38,077 $ - Loss before income taxes $ (1,663 ) $ (6,866 ) $ (2,601 ) |
Schedule of Segment Interest Income and Expense | Year ended March 31, 2013 2014 2015 Interest Interest Interest Interest Interest Interest Segment: Injection molded plastic parts $ 415 $ - $ 495 $ - $ 509 $ - Electronic products 86 - 101 - 26 - Metallic parts (Discontinued in fiscal 2015) - - - - - - Consolidated total $ 501 $ - $ 596 $ - $ 535 $ - |
Schedule of Segment Asset Information | Year ended March 31, 2013 2014 2015 Identifiable Capital Depreciation Identifiable Capital Depreciation Identifiable Capital Depreciation Segment: Injection molded plastic parts $ 80,804 $ 670 $ 3,677 $ 74,328 $ 200 $ 3,181 $ 73,829 $ 550 $ 2,384 Electronic products 30,760 281 537 25,911 648 399 22,610 340 415 Metallic parts (Discontinued in fiscal 2015) 605 - 5 397 5 41 - - 25 Segment totals $ 112,169 $ 951 $ 4,219 $ 100,636 $ 853 $ 3,621 $ 96,439 $ 890 $ 2,824 Reconciliation to consolidated totals: Elimination of receivables from intersegments 4 - - - - - - - - Goodwill allocated to electronic products segment 392 - - - - - - - - Consolidated totals $ 112,565 $ 951 $ 4,219 $ 100,636 $ 853 $ 3,621 $ 96,439 $ 890 $ 2,824 |
Schedule of Net Sales by Geographical Area | Year ended March 31, 2013 2014 2015 Net sales United States of America $ 16,462 $ 11,081 $ 9,910 PRC 22,504 15,862 16,119 United Kingdom 1,908 1,721 1,023 Hong Kong 3,813 3,550 5,505 Europe 5,524 6,197 3,501 Others 3,171 2,521 2,018 Net sales from continuing operations 53,382 40,932 38,076 Net sales from discontinued operations 692 - 1 Total net sales $ 54,074 $ 40,932 $ 38,077 |
Schedule of Segment Indentifiable Assets by Geographical Area | March 31, 2014 2015 Hong Kong and Macao $ 31,078 $ 29,444 PRC 69,558 66,995 Total identifiable assets 100,636 96,439 Goodwill - - Total assets $ 100,636 $ 96,439 |
Condensed Financial Informati45
Condensed Financial Information of Deswell Industries, Inc. (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Condensed Financial Information of Deswell Industries, Inc. [Abstract] | |
Condensed Balance Sheet | March 31, 2014 2015 Assets Current assets: Cash and cash equivalents $ 1,739 $ 1,369 Prepaid expenses and other current assets 76 76 Amounts due from subsidiaries 39,589 35,633 Total current assets 41,404 37,078 Investments in subsidiaries 49,447 48,360 Property, plant and equipment-net 143 56 Total assets $ 90,994 $ 85,494 Liabilities and shareholders' equity Current liabilities: Accrued payroll and employee benefits $ 1,315 $ 1,315 Other accrued liabilities 69 116 Total current liabilities 1,384 1,431 Total shareholders' equity 89,610 84,063 Total liabilities and shareholders' equity $ 90,994 $ 85,494 |
Condensed Income Statement | Year ended March 31, 2013 2014 2015 Equity in earnings (loss) of subsidiaries $ 394 $ (5,213 ) $ (1,120 ) Operating expenses 2,385 2,277 1,688 Loss before income taxes (1,991 ) (7,490 ) (2,808 ) Income taxes - - - Net loss (1,991 ) (7,490 ) (2,808 ) Share of other comprehensive income of subsidiaries 718 57 33 Total comprehensive loss $ (1,273 ) $ (7,433 ) $ (2,775 ) |
Condensed Cash Flow Statement | Year ended March 31, 2013 2014 2015 Cash flows from operating activities Net loss $ (1,991 ) $ (7,490 ) $ (2,808 ) Adjustments to reconcile net loss to net cash provided by operating activities: Equity in (earnings) loss of subsidiaries (394 ) 5,213 1,120 Depreciation 87 87 87 Stock-based compensation expenses - - 199 Changes in operating assets and liabilities: Prepaid expenses and other current assets (53) 5 - Amounts due from subsidiaries 6,756 7,533 3,956 Accrued payroll and employee benefits 616 561 - Other accrued liabilities 84 (30) 47 Net cash provided by operating activities 5,105 5,879 2,601 Cash flows from investing activities Purchase of property, plant and equipment - - - Net cash used in investing activities - - - Cash flows from financing activities Dividends paid (5,357 ) (3,615 ) (2,971 ) Exercise of stock options 1,295 493 - Repurchase of common stock (1,102) (1,411 ) - Net cash used in financing activities (5,164 ) (4,533 ) (2,971 ) Net (decrease) increase in cash and cash equivalents (59) 1,346 (370 ) Cash and cash equivalents, beginning of year 452 393 1,739 Cash and cash equivalents, end of year $ 393 $ 1,739 $ 1,369 |
Summary of Significant Accoun46
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015USD ($)¥ / $ | Mar. 31, 2014USD ($)¥ / $ | Mar. 31, 2013USD ($)¥ / $ | |
Summary of Significant Accounting Policies [Abstract] | |||
Goodwill impairment | $ 392 | ||
Impairment of long-lived assets | 490 | $ 197 | |
Shipping and handling cost | $ 514 | $ 650 | $ 704 |
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | |||
Exchange rate per dollar | 6.2456 | 6.196 | 6.249 |
Aggregate net foreign currency transaction gain | $ (205) | $ 40 | $ 53 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies (Property, Plant and Equipment) (Details) | 12 Months Ended |
Mar. 31, 2015 | |
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 Accoun48
Summary of Significant Accounting Policies (Allowance for Doubtful Account) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Allowance for doubtful account | |||
Balance at beginning of the year | $ 534 | $ 574 | $ 447 |
Provision for the year | 216 | 34 | $ 214 |
Bad debt recovery | $ (143) | (53) | |
Written off during the year | $ (21) | $ (88) | |
Exchange difference | 1 | ||
Balance at end of the year | $ 607 | $ 534 | $ 574 |
Summary of Significant Accoun49
Summary of Significant Accounting Policies (Stock Based Compensation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Summary of Significant Accounting Policies [Abstract] | |||
Stock based compensation expense | $ 199 | ||
Risk-free interest rate-weighted average | 2.606% | ||
Expected life of options-weighted average | 10 years | ||
Stock volatility | 44.37% | ||
Expected dividend yield | 7.80% |
Summary of Significant Accoun50
Summary of Significant Accounting Policies (Net Income (Loss) Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Summary of Significant Accounting Policies [Abstract] | |||
Loss from continuing operations | $ (2,460) | $ (7,079) | $ (1,542) |
Loss from discontinued operations | (348) | (411) | (449) |
Net loss attributable to Deswell Industries, Inc. | $ (2,808) | $ (7,490) | $ (1,991) |
Basic weighted average common shares outstanding | 16,056,000 | 16,186,000 | 16,467,000 |
Basic weighted average common shares outstanding | |||
Loss from continuing operations per share | $ (0.15) | $ (0.43) | $ (0.09) |
Loss from discontinued operations per share | (0.02) | (0.03) | (0.03) |
Basic net loss per share | $ (0.17) | $ (0.46) | $ (0.12) |
Effect of dilutive securities - Options | |||
Diluted weighted average common and potential common shares outstanding | 16,056,000 | 16,186,000 | 16,467,000 |
Diluted net loss per share | |||
Loss from continuing operations per share | $ (0.15) | $ (0.43) | $ (0.09) |
Loss from discontinued operations per share | (0.02) | (0.03) | (0.03) |
Diluted net loss per share | $ (0.17) | $ (0.46) | $ (0.12) |
Potential common shares related to stock options excluded from the computation of diluted net income (loss) per share | 532,000 | 668,500 | |
Shares related to stock options excluded from diluted net loss per share because their inclusion would have been anti-dilutive | 132,000 | 412,000 |
Summary of Significant Accoun51
Summary of Significant Accounting Policies (Fair Value of Assets Measured on Nonrecurring Basis) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant, and equipment, fair value | |||
Impairment of long-lived assets held for use | $ 490 | $ 197 | |
Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant, and equipment, fair value | |||
Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant, and equipment, fair value | |||
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant, and equipment, fair value | $ 490 | ||
Impairment of long-lived assets held for use | $ 490 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Marketable Securities [Abstract] | |||
Marketable securities, cost | $ 9,539 | $ 5,982 | |
Marketable securities, market value | 9,803 | 5,303 | |
Unrealized gain (loss) on marketable securities | 954 | $ (865) | $ 186 |
Proceeds from sale of marketable securities | 1,011 | 2,361 | |
Realized gain from sale of marketable securities | $ 102 | $ 360 |
Available-for-sale Securities53
Available-for-sale Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Available-For-Sale Securities [Abstract] | |||
Available-for-sale securities, cost | $ 1,614 | $ 1,614 | |
Available-for-sale securities, market value | 1,676 | 1,643 | |
Unrealized gain (loss) on available-for-sale securities | $ 33 | $ 57 | $ 718 |
Proceeds from sales of available-for-sale securities | 6,864 | ||
Available-for-sale securities, gross realized gains | 132 | ||
Available-for-sale securities, gross realized losses | $ 30 | ||
Other than temporary impairment charge, available for sale securities |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Inventories [Abstract] | |||
Raw materials | $ 4,963 | $ 5,198 | |
Work-in-progress | 4,437 | 4,289 | |
Finished goods | 1,428 | 1,525 | |
Total inventories | 10,828 | 11,012 | |
Obsolescence allowance at beginning of the year | 3,554 | 3,450 | $ 3,711 |
Additional charges | 341 | 134 | 110 |
Written off | (8) | (30) | (371) |
Obsolescence allowance at the end of the year | $ 3,887 | $ 3,554 | $ 3,450 |
Prepaid Expenses and Other Cu55
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 |
Prepaid Expenses and Other Current Assets [Abstract] | ||
Value added tax receivable | $ 120 | $ 58 |
Rental and utility deposit | 21 | 32 |
Advance to suppliers | 254 | 123 |
Prepayment | 728 | 716 |
Coupon receivable | 58 | 58 |
Others | 939 | 487 |
Total prepaid expenses and other current assets | $ 2,120 | $ 1,474 |
Property, Plant and Equipment56
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Cost | $ 91,297 | $ 96,555 | |
Impairment | (4,779) | (4,881) | |
Less: accumulated depreciation and amortization | (54,699) | (57,813) | |
Net book value | 36,598 | 38,742 | |
Net value of computer software included in furniture, fixture and equipment | $ 106 | 163 | |
Impairment of property, plant and equipment | 490 | $ 197 | |
Depreciation of property, plant and equipment | $ 2,824 | 3,621 | $ 4,219 |
Leasehold land and buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 33,715 | 33,715 | |
Leasehold land and buildings [Member] | Property on lease [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 2,513 | 2,969 | |
Less: accumulated depreciation and amortization | (480) | (535) | |
Net book value | 2,033 | 2,434 | |
Plant and machinery [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 45,676 | 49,693 | |
Furniture, fixtures and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 12,230 | 12,809 | |
Motor vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 1,600 | 1,328 | |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 2,855 | 3,800 | |
Construction in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 91 | ||
Land use right of state-owned land and buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 29,534 | 29,534 | |
Lease terms | 50 years | ||
Lease expiration period | Dec. 31, 2050 | ||
Long term leased land and buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 4,181 | $ 4,181 | |
Lease terms | 50 years | ||
Lease expiration period | Dec. 31, 2053 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Goodwill [Abstract] | |||
Goodwill impairment | $ 392 | ||
Business Combination Segment Allocation [Line Items] | |||
Foreign exchange differences | $ (1) | $ (1) | |
Goodwill | $ 392 | ||
Electronic Products [Member] | |||
Business Combination Segment Allocation [Line Items] | |||
Goodwill | $ 393 | $ 393 | |
Impairment | (392) | (392) | |
Metallic Parts [Member] | |||
Business Combination Segment Allocation [Line Items] | |||
Goodwill | 317 | 317 | |
Impairment | $ (317) | $ (317) |
Discontinued Operations (Statem
Discontinued Operations (Statements of Comprehensive Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Disposal Operations (Statements of Comprehensive Income) [Abstract] | |||
Net sales | $ 1 | $ 692 | |
Loss from discontinued operations, before income taxes | $ (348) | $ (411) | $ (449) |
Income taxes | |||
Loss from discontinued operations, after income taxes | $ (348) | $ (411) | $ (449) |
Discontinued Operations (Balanc
Discontinued Operations (Balance Sheets) (Details) - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 |
Current assets: | ||
Inventories | $ 321 | |
Prepaid expenses and other current assets | 20 | |
Total current assets | 341 | |
Property, plant and equipment, net | 57 | |
Total assets | 398 | |
Current liabilities: | ||
Accounts payable | $ 22 | 136 |
Accrued payroll and employee benefits | 142 | |
Other accrued liabilities | $ 3 | 11 |
Total current liabilities | $ 25 | $ 289 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 |
Other Accrued Liabilities [Abstract] | ||
Accrued expenses | $ 577 | $ 571 |
Value added tax payable | 5 | 2 |
Others | 619 | 664 |
Total other accrued liabilities | $ 1,201 | $ 1,237 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - Mar. 31, 2015 - USD ($) $ in Thousands | Total |
Income Tax Contingency [Line Items] | |
Amount of adjustment to income tax provision related to tax reassessment by the PRC tax authorities | $ 450 |
Operating Loss Carryforward Expiration Period One [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carry-forward attributable to PRC entities | $ 217 |
Net operating loss carry-forward expiration dates | Dec. 31, 2015 |
Operating Loss Carryforward Expiration Period Two [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carry-forward attributable to PRC entities | $ 179 |
Net operating loss carry-forward expiration dates | Dec. 31, 2016 |
Operating Loss Carryforward Expiration Period Three [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carry-forward attributable to PRC entities | $ 69 |
Net operating loss carry-forward expiration dates | Dec. 31, 2017 |
Operating Loss Carryforward Expiration Period Four [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carry-forward attributable to PRC entities | $ 23 |
Net operating loss carry-forward expiration dates | Dec. 31, 2018 |
Operating Loss Carryforward Expiration Period Five [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carry-forward attributable to PRC entities | $ 19 |
Net operating loss carry-forward expiration dates | Dec. 31, 2019 |
Income Tax Contingency for Taxable Calendar Year Ending 2004 [Member] | |
Income Tax Contingency [Line Items] | |
Amount of adjustment to income tax provision related to tax reassessment by the PRC tax authorities | $ 154 |
Income Tax Contingency for Taxable Calendar Year Ending 2005 [Member] | |
Income Tax Contingency [Line Items] | |
Amount of adjustment to income tax provision related to tax reassessment by the PRC tax authorities | 92 |
Income Tax Contingency for Taxable Calendar Year Ending 2006 [Member] | |
Income Tax Contingency [Line Items] | |
Amount of adjustment to income tax provision related to tax reassessment by the PRC tax authorities | 166 |
Income Tax Contingency for Quarterly Period Ending March 31, 2007 [Member] | |
Income Tax Contingency [Line Items] | |
Amount of adjustment to income tax provision related to tax reassessment by the PRC tax authorities | 38 |
Income Tax Contingency for Taxable Calendar Year Ending 2006 [Member] | |
Income Tax Contingency [Line Items] | |
Amount of adjustment to income tax provision related to tax reassessment by the PRC tax authorities | $ 101 |
Income Taxes (Components of Los
Income Taxes (Components of Loss Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Components Of Income Loss Before Income Taxes [Line Items] | |||
Loss from continuing operations, before income taxes | $ (2,253) | $ (6,455) | $ (1,214) |
Loss before income taxes from discontinued operations | (348) | (411) | (449) |
Loss before income taxes | (2,601) | (6,866) | (1,663) |
Hong Kong [Member] | |||
Components Of Income Loss Before Income Taxes [Line Items] | |||
Loss from continuing operations, before income taxes | (2) | (2) | (2) |
Macao [Member] | |||
Components Of Income Loss Before Income Taxes [Line Items] | |||
Loss from continuing operations, before income taxes | 292 | 536 | 1,251 |
PRC [Member] | |||
Components Of Income Loss Before Income Taxes [Line Items] | |||
Loss from continuing operations, before income taxes | (2,543) | (6,989) | (2,463) |
Loss before income taxes from discontinued operations | $ (348) | $ (411) | $ (449) |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income Tax Provision) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Provision for income taxes | |||
PRC | $ 92 | $ 347 | $ 150 |
Deferred tax | 115 | 277 | 178 |
Effective tax | $ 207 | $ 624 | $ 328 |
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, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Income Taxes [Abstract] | |||
Provision for income taxes at statutory tax rate in the PRC | $ (650) | $ (1,717) | $ (416) |
Effect of income for which no income tax is chargeable | (441) | (296) | (21) |
Effect of expense for which no income tax is deductible | 1,209 | 2,312 | 936 |
Net change in valuation allowances | 89 | 175 | $ (171) |
Under provision of income tax in previous years | 150 | ||
Effective tax | $ 207 | $ 624 | $ 328 |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Income Tax Assets and Liabilties) (Details) - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 |
Income Taxes [Abstract] | ||
Deferred income tax assets | ||
Deferred income tax liabilities | $ (804) | $ (691) |
Net deferred income tax liabilities | $ (804) | $ (691) |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Income Tax) (Details) - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 |
Deferred income tax assets (liabilities): | ||
Net operating loss carry forwards | $ 127 | $ 123 |
Provision of employee benefits | 320 | 337 |
Depreciation and amortization | 955 | 834 |
Revenue and cost of sales recognized for financial reporting purpose before being recognized for tax purpose | (1,225) | (1,184) |
Others | (135) | (41) |
Less: Valuation allowances | (846) | (760) |
Net deferred income tax liabilities | $ (804) | $ (691) |
Commitments and Contingencies67
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Commitments and Contingencies [Abstract] | |||
Rental expenses under operating leases | $ 177 | $ 175 | $ 160 |
Future minimum rental payments under operating leases due within 2 years | |||
Year ending March 31, 2016 | 60 | ||
Year ending March 31, 2017 | 9 | ||
Total minimum lease payments | 69 | ||
Future minimum rental income | |||
Year ending March 31, 2016 | 219 | ||
Total minimum future rental income | 219 | ||
Capital commitments for purchase of furniture and fixtures expected to be disbursed | $ 30 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Employee Benefits [Abstract] | |||
Chinese government state pension expense | $ 370 | $ 441 | $ 306 |
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) - USD ($) $ / shares in Units, $ in Thousands | Aug. 07, 2013 | Aug. 13, 2010 | Jan. 07, 2002 | Aug. 17, 2007 | Sep. 19, 2005 | Sep. 30, 2003 | Sep. 29, 1997 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2015 | Mar. 15, 1995 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted | 400,000 | 5,669,000 | ||||||||||
Expiration period of options | 10 years | |||||||||||
Weighted average fair value of options granted | $ 0.50 | |||||||||||
Total intrinsic value of options exercised | $ 81 | $ 392 | ||||||||||
Aggregate intrinsic value of options outstanding and exercisable | ||||||||||||
Weighted average remaining contractual life | 8 years 8 months 12 days | |||||||||||
Options available for future grant | 1,236,000 | 1,636,000 | 1,236,000 | |||||||||
1995 Stock Option Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock option plan, shares authorized | 1,561,500 | 1,012,500 | ||||||||||
Stock option plan, additional shares authorized | 549,000 | |||||||||||
2001 Stock Option Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock option plan, additional shares authorized | 1,125,000 | |||||||||||
2003 Stock Option Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock option plan, shares authorized | 3,500,000 | 2,600,000 | 1,800,000 | 1,400,000 | ||||||||
Stock option plan, additional shares authorized | 900,000 | 800,000 | 400,000 | 500,000 | 900,000 |
Stock Option Plan (Schedule of
Stock Option Plan (Schedule of Stock Option Plan Activity) (Details) - $ / shares | 12 Months Ended | 241 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2015 | |
Number of stock options | ||||
Outstanding at beginning of the year | 132,000 | 1,080,500 | 1,685,500 | |
Granted during the year | 400,000 | 5,669,000 | ||
Exercised during the year | (230,000) | (605,000) | ||
Canceled or expired | (718,500) | |||
Outstanding and exercisable at the end of the year | 532,000 | 132,000 | 1,080,500 | 532,000 |
Weighted average exercise price | ||||
Outstanding at beginning of the year | $ 2.14 | $ 7.29 | $ 5.44 | |
Granted during the year | $ 2.09 | |||
Exercised during the year | $ 2.14 | $ 2.14 | ||
Canceled or expired | 9.88 | |||
Outstanding and exercisable at the end of the year | $ 2.10 | 2.14 | $ 7.29 | $ 2.10 |
Minimum exercise price per share | 2.09 | 2.09 | 1.34 | |
Maximum exercise price per share | $ 2.14 | $ 2.14 | $ 14.10 |
Stock Buyback Plan (Details)
Stock Buyback Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 14, 2012 | |
Stock Buyback Plan [Abstract] | ||||
Authorized repurchase amount | $ 4,000 | |||
Repurchase of common stock, shares | 561,409 | 414,162 | ||
Repurchase of common stock, value | $ 1,411 | $ 1,102 | ||
Repurchased common stock, average price per share | $ 2.51 | $ 2.66 |
Other income (expenses), net (D
Other income (expenses), net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Other income and (expenses) [Abstract] | |||
Gain on disposal of property, plant and equipment | $ 262 | $ 375 | $ 59 |
Exchange gain (loss) | (205) | 40 | 53 |
Provision for doubtful accounts, net | $ (73) | 19 | (214) |
Impairment of property, plant and equipment | (490) | $ (197) | |
Impairment of goodwill | (392) | ||
Others | $ 109 | 234 | $ 532 |
Other income (expenses), net from continuing operations | $ 93 | $ (214) | $ 233 |
Non-operating income, net (Deta
Non-operating income, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Non-operating income, net [Abstract] | |||
Dividend income from marketable securities | $ 238 | $ 233 | $ 218 |
Interest income from available-for-sales securities | 126 | 126 | 718 |
Interest income from bank deposits | 535 | 596 | 501 |
Unrealized gain (loss) from marketable securities | 954 | $ (865) | 186 |
Realized gain from sales of marketable securities | $ 102 | 360 | |
Realized gain from sales of available-for-sale securities, net | $ 102 | ||
Rental income | $ 600 | $ 260 | |
Others | (2) | 29 | $ (29) |
Non-operating income, net from continuing operations | $ 2,553 | $ 379 | $ 2,056 |
Operating Risk (Details)
Operating Risk (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Concentration Risk [Line Items] | ||||
Provision for doubtful accounts, net | $ 73 | $ (19) | $ 214 | |
Charge off provision for doubtful accounts | 21 | 88 | ||
Allowances for doubtful accounts | $ 607 | $ 534 | $ 574 | $ 447 |
10% or more of total net sales [Member] | VTech Telecommunications Ltd. [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 16.50% | 15.80% | 13.00% | |
10% or more of total net sales [Member] | Loud Technologies, Inc. [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 13.70% | 11.70% | ||
10% or more of total net sales [Member] | Lenbrook Industries Ltd. [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 15.70% | 11.10% | ||
10% or more of total accounts receivable [Member] | VTech Telecommunications Ltd. [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 26.10% | 23.00% | ||
[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, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total Net Sales | $ 38,076 | $ 40,932 | $ 53,382 |
Net sales from discontinued operations | 1 | 692 | |
Net sales from continuing and discontinued operations | 38,077 | $ 40,932 | 54,074 |
Profit (loss) | 4,224 | 3,637 | 7,211 |
Loss before income taxes | (2,601) | (6,866) | (1,663) |
Intersegment Sales [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total Net Sales | (539) | (670) | (1,133) |
Injection Molded Plastic Parts [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total Net Sales | 20,206 | 19,918 | 27,775 |
Profit (loss) | (341) | (4,517) | (1,784) |
Injection Molded Plastic Parts [Member] | Intersegment Sales [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total Net Sales | (434) | 580 | 1,050 |
Electronic Products [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total Net Sales | 18,409 | 21,684 | 26,740 |
Profit (loss) | (1,912) | (1,938) | 570 |
Electronic Products [Member] | Intersegment Sales [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total Net Sales | (105) | $ 90 | 83 |
Metallic Parts [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales from discontinued operations | |||
Net sales from continuing and discontinued operations | 1 | 692 | |
Profit (loss) | $ (348) | $ (411) | $ (449) |
Metallic Parts [Member] | Intersegment Sales [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales from discontinued operations | |||
Net sales from continuing and discontinued operations | |||
Segment Total [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total Net Sales | $ 38,616 | $ 41,602 | $ 55,207 |
Profit (loss) | $ (2,601) | $ (6,866) | $ (1,663) |
Segment Information (Schedule o
Segment Information (Schedule of Segment Interest Income and Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Interest income | $ 535 | $ 596 | $ 501 |
Interest expenses | |||
Injection Molded Plastic Parts [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest income | $ 509 | $ 495 | $ 415 |
Interest expenses | |||
Electronic Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest income | $ 26 | $ 101 | $ 86 |
Interest expenses | |||
Metallic Parts [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest income | |||
Interest expenses |
Segment Information (Schedule77
Segment Information (Schedule of Segment Asset Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | $ 890 | $ 853 | $ 951 |
Depreciation and amortization | $ 2,824 | $ 3,621 | 4,219 |
Elimination of receivables from intersegments | 4 | ||
Goodwill | 392 | ||
Consolidated Identifiable assets | $ 96,439 | $ 100,636 | 112,565 |
Intersegment Eliminations [Member] | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Elimination of receivables from intersegments | 4 | ||
Injection Molded Plastic Parts [Member] | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Identifiable assets | $ 73,829 | $ 74,328 | 80,804 |
Capital expenditures | 550 | 200 | 670 |
Depreciation and amortization | 2,384 | 3,181 | 3,677 |
Electronic Products [Member] | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Identifiable assets | 22,610 | 25,911 | 30,760 |
Capital expenditures | 340 | 648 | 281 |
Depreciation and amortization | $ 415 | 399 | 537 |
Metallic Parts [Member] | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Identifiable assets | 397 | $ 605 | |
Capital expenditures | 5 | ||
Depreciation and amortization | $ 25 | 41 | $ 5 |
Segment Total [Member] | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Identifiable assets | 96,439 | 100,636 | 112,169 |
Capital expenditures | 890 | 853 | 951 |
Depreciation and amortization | $ 2,824 | $ 3,621 | $ 4,219 |
Segment Information (Schedule78
Segment Information (Schedule of Net Sales by Geographical Area) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales from continuing operations | $ 38,076 | $ 40,932 | $ 53,382 |
Net sales from discontinued operations | 1 | 692 | |
Total net sales | 38,077 | $ 40,932 | 54,074 |
United States of America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales from continuing operations | 9,910 | 11,081 | 16,462 |
PRC [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales from continuing operations | 16,119 | 15,862 | 22,504 |
United Kingdom [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales from continuing operations | 1,023 | 1,721 | 1,908 |
Hong Kong [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales from continuing operations | 5,505 | 3,550 | 3,813 |
Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales from continuing operations | 3,501 | 6,197 | 5,524 |
Others [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales from continuing operations | $ 2,018 | $ 2,521 | $ 3,171 |
Segment Information (Schedule79
Segment Information (Schedule of Segment Indentifiable Assets by Geographical Area) (Details) - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total identifiable assets | $ 96,439 | $ 100,636 | |
Goodwill | $ 392 | ||
Total assets | $ 96,439 | $ 100,636 | $ 112,565 |
Hong Kong And Macao [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total identifiable assets | 29,444 | 31,078 | |
PRC [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total identifiable assets | $ 66,995 | $ 69,558 |
Condensed Financial Informati80
Condensed Financial Information of Deswell Industries, Inc. (Narrative) (Details) $ in Thousands, ¥ in Millions | 12 Months Ended | ||||
Mar. 31, 2015USD ($) | Mar. 31, 2014USD ($) | Mar. 31, 2013USD ($) | Mar. 31, 2015CNY (¥) | Mar. 31, 2014CNY (¥) | |
Condensed Financial Information of Deswell Industries, Inc. [Abstract] | |||||
Net assets of subsidiaries restricted from transfer to the parent company | $ 76,674 | $ 77,255 | ¥ 479 | ¥ 479 | |
Jetcrown Industrial [Member] | |||||
Related Party Transaction [Line Items] | |||||
Amount of related party transaction | $ 120 | $ 120 | $ 120 |
Condensed Financial Informati81
Condensed Financial Information of Deswell Industries, Inc. (Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Current assets: | ||||
Cash and cash equivalents | $ 14,325 | $ 23,278 | $ 32,030 | $ 33,073 |
Prepaid expenses and other current assets | 2,120 | 1,474 | ||
Total current assets | 58,240 | 61,894 | ||
Property, plant and equipment-net | 36,598 | 38,742 | ||
Total assets | 96,439 | 100,636 | 112,565 | |
Current liabilities: | ||||
Accrued payroll and employee benefits | 4,228 | 4,391 | ||
Other accrued liabilities | 1,201 | 1,237 | ||
Total current liabilities | 12,376 | 11,026 | ||
Total shareholders' equity | 84,063 | 89,610 | 101,576 | 107,689 |
Total liabilities and shareholders' equity | 96,439 | 100,636 | ||
Parent Company [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 1,369 | 1,739 | $ 393 | $ 452 |
Prepaid expenses and other current assets | 76 | 76 | ||
Amounts due from subsidiaries | 35,633 | 39,589 | ||
Total current assets | 37,078 | 41,404 | ||
Investments in subsidiaries | 48,360 | 49,447 | ||
Property, plant and equipment-net | 56 | 143 | ||
Total assets | 85,494 | 90,994 | ||
Current liabilities: | ||||
Accrued payroll and employee benefits | 1,315 | 1,315 | ||
Other accrued liabilities | 116 | 69 | ||
Total current liabilities | 1,431 | 1,384 | ||
Total shareholders' equity | 84,063 | 89,610 | ||
Total liabilities and shareholders' equity | $ 85,494 | $ 90,994 |
Condensed Financial Informati82
Condensed Financial Information of Deswell Industries, Inc. (Statements of Comprehensive Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Condensed Income Statements, Captions [Line Items] | |||
Loss before income taxes | $ (2,253) | $ (6,455) | $ (1,214) |
Income taxes | 207 | 624 | 328 |
Net loss | (2,808) | (7,490) | (1,991) |
Share of other comprehensive income of subsidiaries | 33 | 57 | 718 |
Total comprehensive loss attributable to Deswell Industries, Inc. | (2,775) | (7,433) | (1,273) |
Parent Company [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Equity in earnings (loss) of subsidiaries | (1,120) | (5,213) | 394 |
Operating expenses | 1,688 | 2,277 | 2,385 |
Loss before income taxes | $ (2,808) | $ (7,490) | $ (1,991) |
Income taxes | |||
Net loss | $ (2,808) | $ (7,490) | $ (1,991) |
Share of other comprehensive income of subsidiaries | 33 | 57 | 718 |
Total comprehensive loss attributable to Deswell Industries, Inc. | $ (2,775) | $ (7,433) | $ (1,273) |
Condensed Financial Informati83
Condensed Financial Information of Deswell Industries, Inc. (Condensed Statement of Cashflows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Cash flows from operating activities | |||
Net loss | $ (2,808) | $ (7,490) | $ (1,991) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Stock-based compensation expenses | 199 | ||
Changes in operating assets and liabilities: | |||
Prepaid expenses and other current assets | (646) | $ (322) | $ 1,012 |
Accrued payroll and employee benefits | (163) | 258 | 355 |
Other accrued liabilities | (36) | (23) | (51) |
Net cash provided by (used in) operating activities | (2,370) | (1,878) | 8,410 |
Cash flows from investing activities | |||
Purchase of property, plant and equipment | (890) | (853) | (951) |
Net cash used in investing activities | (3,612) | (2,341) | (4,289) |
Cash flows from financing activities | |||
Dividends paid | $ (2,971) | (3,615) | (5,357) |
Exercise of stock option | 493 | 1,295 | |
Repurchase of common stock | (1,411) | (1,102) | |
Net cash used in financing activities | $ (2,971) | (4,533) | (5,164) |
Net decrease in cash and cash equivalents | (8,953) | (8,752) | (1,043) |
Cash and cash equivalents, beginning of year | 23,278 | 32,030 | 33,073 |
Cash and cash equivalents, end of year | 14,325 | 23,278 | 32,030 |
Parent Company [Member] | |||
Cash flows from operating activities | |||
Net loss | (2,808) | (7,490) | (1,991) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Equity in (earnings) loss of subsidiaries | 1,120 | 5,213 | (394) |
Depreciation | 87 | $ 87 | $ 87 |
Stock-based compensation expenses | $ 199 | ||
Changes in operating assets and liabilities: | |||
Prepaid expenses and other current assets | $ 5 | $ (53) | |
Amounts due from subsidiaries | $ 3,956 | 7,533 | 6,756 |
Accrued payroll and employee benefits | 561 | 616 | |
Other accrued liabilities | $ 47 | (30) | 84 |
Net cash provided by (used in) operating activities | $ 2,601 | $ 5,879 | $ 5,105 |
Cash flows from investing activities | |||
Purchase of property, plant and equipment | |||
Net cash used in investing activities | |||
Cash flows from financing activities | |||
Dividends paid | $ (2,971) | $ (3,615) | $ (5,357) |
Exercise of stock option | 493 | 1,295 | |
Repurchase of common stock | (1,411) | (1,102) | |
Net cash used in financing activities | $ (2,971) | (4,533) | (5,164) |
Net decrease in cash and cash equivalents | (370) | 1,346 | (59) |
Cash and cash equivalents, beginning of year | 1,739 | 393 | 452 |
Cash and cash equivalents, end of year | $ 1,369 | $ 1,739 | $ 393 |