HONG KONG, Jan. 16, 2009 (GLOBE NEWSWIRE) -- Bonso Electronics International, Inc. (Nasdaq:BNSO) a designer and manufacturer of sensor based and communications products, today announced financial results for the six-month period ended September 30, 2008.
The company reported that net sales for the six-month period ended September 30, 2008, decreased by 15.5% to $30,100,000 as compared to $35,607,000 during the same period last year. Net income increased by 132.9% to $444,000 or $0.08 per share (diluted) as compared to a loss of $1,350,000 or $0.24 per share (diluted) during the same period last year.
Mr. Anthony So, Chairman and Chief Executive Officer of Bonso, stated, "Because of rising labor and material costs, we have intentionally given up orders of telecommunication products with low profit margins. As a result, although revenue decreased, our profit increased. With the implementation of our cost savings plan, the gross profit margin has increased to 19.2%, compared to 12.4% during the same period last year."
Mr. So further stated, "Our focus for the second half of our fiscal year is on our core business with existing customers, exploring new potential markets, and disposing of our unprofitable subsidiaries. Also, we believe our shares are undervalued, and we will purchase our shares in the market. With the turnaround in the first half of the year, we have strengthened our Balance Sheet with the cash position at the end of the second quarter of $11.7 million, or approximately $2.11 per share."
Mr. So also stated, "I am pleased to report that we completed the sale of our 51% owned Canadian subsidiary effective as of November 1, 2008, and we are in the process of trying to sell our German subsidiary, in order to minimize loss. The sale of the Canadian subsidiary is not expected to result in any financial statement gain or loss to the Company, and we believe that it will have a positive impact upon our future operations."
About Bonso Electronics
Bonso Electronics designs, develops, manufactures, assembles and markets a comprehensive line of telecommunications products, electronic scales and weighing instruments and health care products. Bonso products are manufactured in the People's Republic of China for customers primarily located in North America and Europe. Company services include product design and prototyping, production tooling, procurement of components, total quality management, and just-in-time delivery. Bonso also independently designs and develops electronic products for private label markets. For further information, visit the company's web site at www.bonso.com.
This news release includes forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Forward looking statements may be identified by such words or phrases "should," "intends," "is subject to," "expects," "will," "continue," "anticipate," "estimated," "projected," "may," "we believe," "future prospects," or similar expressions. The forward-looking statements above involve a number of risks and uncertainties. Factors that might cause actual results to differ include, but are not limited to conditions in the general economy and in the markets served by the Company; competitive factors, such as price pressures and the potential emergence of rival technologies; interruptions of suppliers' operations affecting availability of component materials at reasonable prices; timely development and market acceptance, and warranty performance of new products; changes in product mix, costs and yields, fluctuations in foreign currency exchange rates; uncertainties related to doing business in Hong Kong and China; and the risk factors listed from time to time in the Company's SEC reports. Forward-looking statements do not include the impact of acquisitions or dispositions of assets, which could affect results in the near term. Actual results may differ materially. The Company assumes no obligation to update the information included this Form 6-K.
BONSO ELECTRONICS INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(In U.S. Dollars)
Sep 30, Mar 31,
2008 2008
(Unaudited) (Audited)
Assets
Current assets
Cash and cash equivalents 11,742,683 10,195,362
Trade receivables, net 7,508,758 5,264,074
Inventories, net 14,402,188 11,391,318
Tax recoverable 774,051 2,117
Other receivables, deposits and
prepayments 2,787,229 4,144,676
Total current assets 37,214,909 30,997,547
Deferred income tax assets 21,776 191,618
Other non-current assets -- 155,125
Brand name and other intangible
assets, net 500,520 502,494
Property, plant and equipment, net 8,486,456 9,939,064
Total assets 46,223,661 41,785,848
Liabilities and shareholders' equity
Current liabilities
Bank overdraft 484,715 811,354
Notes payable 7,545,628 3,863,465
Accounts payable 7,747,099 5,985,403
Accrued charges and deposits 3,014,840 3,359,557
Short-term loans 3,754,400 3,894,159
Income tax payable 24,423 6,888
Current portion of long-term debts
and capital lease obligations 146,611 176,930
Total current liabilities 22,717,716 18,097,756
Long-term debt and capital lease
obligations, net of current
maturities 114,337 183,761
Income tax liabilities 2,595,135 2,595,135
Deferred income tax liabilities 4,460 4,460
Total Liabilities 25,431,648 20,881,112
Shareholders' equity
Preferred stock par value $0.01 per
share
-authorized shares - 10,000,000 -- --
-issued and outstanding shares :
September 30, 2008 and March
31, 2008
Common stock par value $0.003
per share
- authorized shares - 23,333,334 -- --
- issued and outstanding shares :
September 30, 2008 and March
31, 2008 - 5,577,639 16,729 16,729
Additional paid-in capital 21,764,788 21,764,788
Treasury stock (1,440,374) (1,328,560)
Retained earnings (686,268) (1,129,819)
Accumulated other comprehensive
income 1,137,138 1,581,598
20,792,013 20,904,736
Total liabilities and shareholders'
equity 46,223,661 41,785,848
BONSO ELECTRONICS
INTERNATIONAL INC.
CONSOLIDATED INCOME STATEMENT
(In Thousands of U.S. Dollars)
Six months ended
SEP 30
2008 2007
(Unaudited) (Unaudited)
Net sales 30,100 35,607
Cost of sales (24,309) (31,184)
Gross margin 5,791 4,423
Selling expenses 1,026 1,176
Salaries and related costs 2,474 2,970
Research and development
expenses 291 266
Administration and general
expenses 1,428 1,598
Amortization of brand name -- 100
(Loss)/Income from
operations 572 (1,687)
Interest income 64 75
Other income 62 264
Interest expenses (193) (304)
Foreign exchange gain/(loss) (55) 305
(Loss)/Income before income taxes
and minority interest 450 (1,347)
Income tax expense (6) (3)
Net (loss)/ Income before
minority interest 444 (1,350)
Minority interests -- --
Net (loss)/Income 444 (1,350)
Earnings per share (in
U.S.Dollars per share)
Basic 0.08 -0.24
Diluted 0.08 -0.24
Weighted average shares
(Basic) 5,577,639 5,577,639
Weighted average shares
(Diluted) 5,577,639 5,577,639