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Deswell Industries Inc

deswell.com

What Do They Do?

Builds electronic products and subassemblies for OEMs and contract manufacturers, including audio equipment and circuit-board assemblies. Also makes injection-molded plastic parts for consumer and industrial products.

How Do They Make Money?

OEMs and contract manufacturers pay for products when delivered and for injection molds when accepted; normal payment terms are 30 days to 90 days.

revenue
SegmentShareRevenue
Injection Molded Plastic Parts
Sold outright

15%
FY2023: 20%
Electronic Products
Sold outright

85%
FY2023: 80%

Who Are Their Customers?

OEMs and contract manufacturers buy plastic parts, electronic products and subassemblies. Deswell reaches existing and potential customers through direct contact by management and sales staff, and sales are based on purchase orders.

Do Revenues Turn Into Profits?

Yes. It kept 17 cents of every revenue dollar as net income in FY2026 and turned 8 cents into free cash flow.

Operating income, FY2026
3% of revenue
▼ −40% vs FY2025 ($3.3M, 5%)
Net income, FY2026
17% of revenue
▼ −5% vs FY2025 ($11.1M, 16%)
Free cash flow, FY2026
8% of revenue
▼ −64% vs FY2025 ($13.2M, 20%)

How Are They Changing?

Shrinking. Revenue fell 29% in 4 years, from $86M in FY2022 to $61.3M in FY2026, about 8% a year.

Revenue over time
Injection Molded Plastic Parts Electronic Products
$100M$50M$0

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