Deswell Announces Second Quarter EPS of $.10

Deswell Industries, Inc.

today announced its financial results for the fiscal second quarter ended September 30, 2010. Net sales for the second quarter ended September 30, 2010 were $24 million, an increase of 15.2% compared to net sales of $20.8 million for the same quarter ended September 30, 2009. The Company reported a net loss of $1.6 million for the second quarter ended September 30, 2010 compared to net income of $3.1 million for the quarter ended September 30, 2009. Basic and diluted net loss per share was ($0.10), compared to basic and diluted net income per share of $0.20, for the same quarter ended September 30, 2009.