| Market Capitalization (Millions $) |
49 |
| Shares
Outstanding (Millions) |
16 |
| Employees |
854 |
| Revenues (TTM) (Millions $) |
68 |
| Net Income (TTM) (Millions $) |
11 |
| Cash Flow (TTM) (Millions $) |
12 |
| Capital Exp. (TTM) (Millions $) |
1 |
Business Description
We are an independent manufacturer of injection-molded plastic parts and components,
electronic products and subassemblies and metallic molds and accessory parts for
original equipment manufacturers, or “OEMs” and contract manufacturers.
We conduct all of our manufacturing activities at separate plastics, electronics
and metallic operation factories located in the People’s Republic of China.
We produce a wide variety of plastic parts and components that are used in the
manufacture of consumer and industrial products, using different plastic injection
technologies, such as film injection, integrated injection and insert injection.
The products include:
· plastic components of electronic entertainment products;
· cases for flashlights, telephones, paging machines, projectors and alarm
clocks;
· toner cartridges and cases for photocopy and printer machines;
· parts for electrical products such as air-conditioning and ventilators;
· parts for audio equipment;
· cases and key tops for personal organizers and remote controls;
· double injection caps and baby products ;
· parts for medical products such as apparatus for blood tests;
· laser key caps; and
· automobile components.
Electronic products manufactured by the Company include:
· sophisticated professional audio equipment including digital audio workstation,
digital or analogue mixing consoles, instrument amplifiers, signal processors,
firewire/USB audio interfaces, keyboard controllers and speaker enclosures;
· high end home theatre audio products, such as 7.1-channel audio-visual
Hi-Fi stereo receivers-amplifiers;
· complex printed circuit board assemblies using surface mount technology
(“SMT”), automatic
insertion (“AI”) and pin-through-hole (“PTH”) interconnection
technologies; and
· telecommunication products, such as VoIP keysets for business communications.
Historically, metal products manufactured by the Company include metallic molds
and necessary parts used in audio equipment, telephones, copying machines, pay
telephones, multimedia stations, automatic teller machines, vending machines,
and more. As manufacturing of the metallic components is considered to be one
of the production processes that may emit pollutants, during the year ended March,
31, 2015 the Company gradually outsourced manufacturing of the metal components
used in assembly of the Company’s audio products. Since March, 2015, all
the metallic components used in assembly of the Company’s audio products
were provided by third party suppliers
As part of its manufacturing operations, the Company consults with its customers
in the design of plastic parts and the design and production of the molds used
to manufacture plastic parts, which are made by Deswell at its customers’
expense, and provides advice and assistance in the design and manufacturing of
printed circuit boards. The Company believes that its ability to manufacture high-end
plastic and metallic accessory parts of the quality required by OEMs and contract
manufacturers which furnish products and services internationally, Deswell’s
expertise in designing and manufacturing molds for its customers and the Company’s
low production costs distinguish Deswell from most other manufacturers of plastic
products and provide it with a competitive advantage. However, this advantage
has been difficult to maintain as a result of increased competition and increased
production overheads during the last three fiscal years.
Industry Overview
Management believes that the injection molding and parts manufacturing industries
have each benefited in recent years from a trend among major users of injection
molded and metal products to outsource an increasing portion of the parts requirements
and to select a small number of suppliers or a sole supplier to provide those
products. The Company is not aware of any empirical data defining the manufacturing
industry in China, however, management believes that injection molding firms which
are much smaller than the Company make up the largest segment of the industry
in China. The Company’s experience indicates that such smaller firms are
often unable to react quickly and responsively to the diverse demands of many
customers and are not capable of furnishing the level of quality that high-end
plastic and metal products require. Management believes that this inability on
the part of these smaller manufacturers has created opportunities for the Company
to increase sales by catering to the outsourcing requirements of OEMs and contract
manufacturers that manufacture such high-end products.
Similarly, as a result of the recognition by OEMs in the electronics industry
of the rising costs of operating a manufacturing site and the need to add more
sophisticated and expensive manufacturing processes and equipment, OEMs have turned
increasingly to outside contract manufacturers. By doing so, OEMs are able to
focus on research, product conception, design and development, marketing and distribution,
and to rely on the production expertise of contract manufacturers. Other benefits
to OEMs of using contract manufacturing include: access to manufacturers in regions
with low labor and overhead costs, reduced time to market, reduced capital investment,
improved inventory management, improved purchasing power and improved product
quality. In addition, the use of contract manufacturers has helped OEMs manage
production in view of increasingly shorter product life cycles.
Company Address: 10B, Edificio Associacao Industrial De Macau Macao 0
Company Phone Number: 28-322096 Stock Exchange / Ticker: NASDAQ DSWL
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