a6350247.htm
FORM 6-K/A



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 July 6, 2010




DESWELL INDUSTRIES, INC.
(Registrant’s name in English)




17B Edificio Comercial Rodrigues
599 Avenida Da Praia Grande,
Macao, China
 (Address of principal executive offices)
 
 
 
 
 
 
EXPLANATORY  NOTE


This Form 6-K/A of Deswell Industries, Inc. (the “Company”) is being submitted to amend the "Unaudited Consolidated Statement of Cash Flows" for the year ended March 31, 2010 and the analysis on "Liquidity". The amounts for "Purchase of marketable securities", "Proceeds on sale of marketable securities" and "Gain on disposal of marketable securities" have been wrongly presented as  “Unrealized holding gain on marketable securities” in the Company’s current Form 6-K, which was originally submitted with the Securities and Exchange Commission on June 23, 2010.
 
DESWELL  INDUSTRIES,  INC.
CONSOLIDATED  STATEMENT  OF  CASH  FLOWS  (UNAUDITED)
 
( U.S. dollars in thousands )
  
Year ended March 31
          
Year ended March 31,
  
   
2010
          
2010
    
2009
  
   
As Previously
    
Effect of
    
As
        
   
Filed
    
Change
    
Adjusted
        
Cash flows from operating activities :
                        
Net income
   $ 1,499           $ 1,499     $ 1,195  
Adjustments to reconcile net income to net cash
                              
  provided by operating activities :
                              
   Depreciation and amortization
     7,011             7,011       7,264  
   Impairment of property, plant and equipment
     (27 )           (27 )     176  
  (Gain)/loss on disposal of property, plant and equipment
     (4,304 )           (4,304 )     216  
  Unrealized holding (gain)/ loss on marketable securities
     (5,573 )   $ 5,531       (42 )     16  
  Gain on disposal of marketable securities
     -       (160 )     (160 )     -  
  Stock-based compensation
     125               125       62  
   Deferred tax
     1,016               1,016       (517 )
   Changes in operating assets and liabilities :
                                
     Accounts receivable
     7,828               7,828       (918 )
     Inventories
     5,637               5,637       4,923  
     Prepaid expenses and other current assets
     287               287       1,306  
     Income taxes receivable
     -               -       3  
     Accounts payable
     (3,072 )             (3,072 )     (2,157 )
     Accrued payroll and employee benefits
     97               97       (376 )
     Customer deposits
     (577 )             (577 )     335  
     Other accrued liabilities
     (262 )             (262 )     67  
     Income taxes payable
     (705 )             (705 )     74  
Net cash provided by operating activities
     8,980       5,371       14,351       11,669  
Cash flows from investing activities
                                
Purchase of property, plant and equipment
     (1,606 )             (1,606 )     (7,402 )
Proceeds from disposal of property, plant and equipment
     7,651               7,651       345  
Closing cost on disposal of plant
     (2,123 )             (2,123 )     -  
Purchase of marketable securities
     -       (5,631 )     (5,631 )     -  
Proceeds from sale of marketable securities
     -       260       260       -  
   Net cash used in investing activities
     3,922       (5,371 )     (1,449 )     (7,057 )
Cash flows from financing activities
                                
Dividends paid
     (1,619 )             (1,619 )     (3,789 )
Exercised of stock options
     703               703       -  
   Net cash provided in financing activities
     (916 )             (916 )     (3,789 )
                                 
Cash effect of exchange rate changes
     -               -       (407 )
                                 
Net decrease in cash and cash equivalents
     11,986               11,986       416  
Cash and cash equivalents, at beginning of period
     23,134               23,134       22,718  
Cash and cash equivalents, at end of period
     35,120               35,120       23,134  
Supplementary disclosures of cashflow information :
                                
Cash paid during the period for :
                                
   Interest
     -               -       -  
   Income taxes     380       380       79       79  
 
 
 
 
 
Liquidity
 
As of March 31, 2010, the Company had cash and cash equivalents of $35,120,000, compared to $23,134,000 at March 31, 2009.  The increase in cash and cash equivalents was mainly attributed to net cash provided by operating activities of $14,351,000, net cash used in investing activities of $1,449,000 consisting primarily of purchase of property, plant and equipment for $1,606,000, and marketable securities for $5,631,000, offsetting proceeds on the disposal of the former manufacturing plant for $5,185,000, and net cash used in financing activities of $916,000 consisting primarily of $1,619,000 paid to shareholders as dividends offsetting cash of $702,000  from exercise of stock options during the year ended March 31, 2010.
 
The Company has generated sufficient funds from its operating activities to finance its operations and there is little need for external financing.  The Company has no short-term borrowings or long-term borrowings at March 31, 2010. 
 
As of March 31, 2010, the Company had no general banking facilities.  The Company expects that working capital requirements and capital additions will be funded through internally generated funds.
 
 
 
 
 
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: July 6, 2010