FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For August 22, 2007
DESWELL INDUSTRIES, INC.
(Registrant's name in English)
17B Edificio Comercial Rodrigues
599 Avenida Da Praia Grande,
Macao, China
(Address of principal executive offices)
Deswell Industries, Inc. Acquires Remaining 24% Interest in Electronic and
Metallic Subsidiaries
MACAO--(BUSINESS WIRE)--Aug. 22, 2007--Deswell Industries, Inc.
(Nasdaq: DSWL) today announced that it has acquired an additional 24%
interest in Integrated International Limited ("Integrated"), the
holding company for Deswell's electronics and metallics subsidiaries,
which together with the current 76% interest in Integrated, makes it
now 100% owned by Deswell. The aggregate purchase price for the 24%
interest consists of (a) 632,080 common shares of Deswell and (b) a
cash payment of HK$3,234,180 (approximately US$413,578) to Messrs.
S.K. Lee and M.C. Tam, minority shareholders of Integrated. The newly
issued shares are subject to a lock-up period of fifteen months.
Franki Tse, chief executive officer, commented, "This subsidiary
has become integral to our growth as it has evolved into one of the
preeminent assemblers of audio equipment the world over. We expect to
more aggressively share resources and technical know-how between our
plastics and electronics subsidiaries, realizing improved resource
allocation and synergies going forward."
Annual General Meeting
The Company will hold its 2007 Annual General Meeting at 3:00 p.m.
on October 9, 2007 at the Four Season's Hotel at 57 East 57th Street,
New York.
About Deswell
Deswell manufactures injection-molded plastic parts and
components, electronic products and subassemblies, and metallic
products for original equipment manufacturers ("OEMs") and contract
manufacturers at its factories in the People's Republic of China. The
Company produces a wide variety of plastic parts and components used
in the manufacture of consumer and industrial products; printed
circuit board assemblies using surface mount ("SMT") and finished
products such as telephones, telephone answering machines,
sophisticated studio-quality audio equipment and computer peripherals.
The Company's customers include Digidesign Inc., Vtech
Telecommunications Ltd., Epson Precision (H.K.) Ltd., Inter-Tel
Incorporated, Line 6 Manufacturing and Peavey Electronics Corporation.
To learn more about Deswell Industries, Inc., please visit the
Company's web site at www.deswell.com.
Forward-Looking Statements
Statements in this press release that are "forward-looking
statements" are based on current expectations and assumptions that are
subject to risks and uncertainties. For example, our statements
regarding our expected growth in sales from the electronic and
metallic division in the coming year and our efforts to reduce
overhead costs in our plastic division are forward-looking statements.
Actual results could differ materially because of the following
factors, among others, which may cause revenues and income to fall
short of anticipated levels or our overhead expenses to increase: our
dependence on a few major customers; vigorous competition forcing
product price reductions or discounts; the timing and amount of
significant orders from our relatively few significant customers;
continuing increases in resin prices that cannot be passed on to
customers; unexpected production delays; obsolete inventory or product
returns; losses resulting from fraudulent activity of our customers or
employees; labor shortages that increase labor and costs; changes in
the mix of product products we manufacture and sell; adverse currency
fluctuations in the renminbi and Hong Kong dollar when translated to
US dollars; potential new accounting pronouncements; and the effects
of travel restrictions and quarantines associated with major health
problems, such as the Severe Acute Respiratory Syndrome, on general
economic activity.
For further information regarding risks and uncertainties
associated with the Company's business, please refer to the "Risk
Factors" section of Company's Annual Report on Form 20-F, copies of
which may be obtained from the Website maintained by the Securities
and Exchange Commission at http://www.sec.gov.
All information in this release is made as of the date of this
press release. Deswell undertakes no duty to update any
forward-looking statement to conform the statement to actual results
or changes in Deswell's expectations.
CONTACT: Institutional Marketing Services (IMS)
John G. Nesbett / Jennifer Belodeau, 203-972-9200
jnesbett@institutionalms.com
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
For and on behalf of
Deswell Industries, Inc. by
/s/ Franki Tse
----------------
Franki Tse
Chief Executive Officer
Date: August 22, 2007