And now the bad news from Mita:
Deswell Industries, Inc. Announces Reduced Orders From Leading Customer
Business Wire - September 14, 1998 10:44
HONG KONG--(BUSINESS WIRE)--Sept. 14, 1998--Deswell Industries, Inc. (Nasdaq NM: DSWLF) (the "Company") today announced that it anticipates a reduction in orders from Mita Industrial Co. (Hong Kong.) Ltd. ("Mita Hong Kong"), one of its major customers, by approximately 50% for the months of September, October and November 1998 due to the reorganization of its parent company, Mita Industrial Co. Ltd. (Mita Japan).
For the year ended March 31, 1998, Mita Hong Kong accounted for approximately 23% of Deswell's total sales.
Richard Lau, Chairman and CEO of Deswell Industries, stated, "The order rates for September, October and November from Mita Hong Kong will be negatively impacted due to reduced demand as a result of Mita Japan's restructuring. Mita Hong Kong has assured its vendors that it will continue to operate. We have had a very strong relationship with Mita Hong Kong for the past 10 years and expect to continue to work very closely with the Company to help support its manufacturing needs. Hopefully, this will be a short term slowdown and we are poised to quickly ramp up production again for Mita as required."
Deswell manufactures injection-molded plastic parts and components and 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 pin-through hole ("PTH") interconnection technologies; and finished products such as telephones, telephone answering machines, sophisticated studio-quality audio equipment and computer peripherals. The Company's customers include: Mita Industries (H.K.) Limited, Nam Tai Electronics (Shenzhen) Co. Ltd., Inter-Tel Incorporated, Behringer spezeiller sudiotechnik GMBH, and Shakespeare (H.K.) Limited.
CONTACT: John Nesbett, 212/838-3777 ext. 303
e-mail: jgn@lhai.com |
