Deswell Industries Reports H1 2026 Results, Revenue Down 5.5% to $33.2mln, Net Income Up to $7.5mln

Deswell Industries reported a 5.5% decrease in net sales to $33.2 million for the first half of FY26, with the plastic segment down 13.8% to $5 million and the electronic segment down 3.9% to $28.2 million. However, gross margin increased to 23.4% from 19.5% last year, driven by higher-margin offerings and cost control measures. Operating income rose to $2.5 million from $1.8 million, and net income increased to $7.5 million from $6.2 million. The company has a strong financial position, with $23.4 million in cash and cash equivalents and working capital totaling $85.1 million.