October 30, 2009 at 08:30 AM EDT
Bonso Electronics Reports Year End Results

HONG KONG, Oct. 30, 2009 (GLOBE NEWSWIRE) -- Bonso Electronics International Inc (Nasdaq:BNSO) today reported its annual results for the fiscal year ended March 31, 2009.

Bonso reported a net loss for the fiscal year ended March 31, 2009 of $7.6 million or $1.36 basic and diluted loss per share, as compared to a net loss of $8.6 million or $1.53 basic and diluted loss per share posted during fiscal year ended March 31, 2008. Net sales for the year ended March 31, 2009 decreased 11.2% to $40.4 million from $45.5 million for the year ended March 31, 2008.

Mr. Anthony So, President and CEO stated: "During the fiscal year ended March 31, 2009, we disposed of our Canadian subsidiary, Gram Precision Scales Inc. ("Gram"), effective as of November 1, 2008. Also, we sold the key assets of our German subsidiary, Korona Haushaltswaren GmbH & Co. KG ("Korona"), to an unaffiliated company, and we are now in the process of liquidating Korona.

"During the fiscal year ended March 31, 2009, these two subsidiaries had combined operating losses of $4.6 million. In connection with the Gram disposition, we wrote off approximately $3.7 million of inter-company receivables that were owed by Gram to Bonso. In addition, we wrote off the entire $1.7 million dollar note that we received in connection with the sale of our interest in Gram, because of uncertainty with respect to our ability to collect on that note. In connection with the sale of the assets of Korona and our decision to liquidate Korona, we recorded a $1.4 million provision for the projected liquidation cost of Korona and also wrote off approximately $2.2 million of inter-company receivables that were owed by Korona to Bonso. In connection with the reduction of staff in the PRC during the fiscal year ended March 31, 2009, we recorded a provision of approximately $0.8 million for severance payments."

Mr. So went on to state: "I am very optimistic about Bonso's future. Gram and Korona have had a significant negative impact upon our financial performance for a number of years, and our future performance looks much brighter for our shareholders without the burdens associated with those two companies."

Mr. So said further: "We maintain a strong cash position, which was $8.0 million (or $1.44 per share) as of March 31, 2009. We believe our shares are undervalued, and we intend to buy back our shares in the market. Also, we are focusing on developing new products with our existing and potential customers, and reducing our manufacturing costs and material costs, to increase our profitability."

About Bonso Electronics

Bonso Electronics designs, develops, manufactures, assembles and markets a comprehensive line of electronic scales, weighing instruments, health care products and telecommunications 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 http://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 as "should," "intends," "is subject to," "expects," "will," "continue," "anticipate," "estimated," "projected," "may," "I or we believe," "future prospects," or similar expressions. Forward-looking statements made in this press release, which relate to the reduction of losses and a positive impact upon our future operations as a result of the sale of assets involve known and unknown risks and uncertainties that may cause the actual results to differ materially from those expected and stated in this announcement. We undertake no obligation to update "forward-looking" statements.

                          (In U.S. Dollars)

                                                 March 31    March 31
                                                   2008        2009


 Current assets
  Cash and cash equivalents                      9,653,991   8,043,535
  Trade receivables, net                         2,653,886   1,084,756
  Inventories, net                               8,446,903   6,284,293
  Income tax recoverable                           406,861     987,449
  Other receivables, deposits and
   prepayments                                   2,643,936     837,191
  Held-to-maturity investments                          --   1,000,000
  Current assets of discontinued
   operations                                    7,191,970   3,813,697
 Total current assets                           30,997,547  22,050,921

 Deferred income tax assets                         21,776          --
 Goodwill                                               --          --
 Brand name and other intangible
  assets, net                                    4,118,575   4,008,147
 Other non-current assets                          155,125          --
 Property, plant and equipment, net              5,943,199   3,374,253
 Non-current assets of discontinued
  Operations                                       549,626       5,704
 Total assets                                   41,785,848  29,439,025

 Liabilities and stockholders' equity

 Current liabilities
  Bank overdrafts - secured                        300,192     385,514
  Notes payable                                  3,863,465   1,361,787
  Accounts payable                               5,366,138   3,103,502
  Accrued charges and deposits                   2,276,871   2,004,841
  Income tax liabilities                             6,888       6,888
  Current portion of capital lease
   obligations                                     176,930     130,201
  Current liabilities
   of discontinued operations                    6,107,272   5,787,099
 Total current liabilities                      18,097,756  12,779,832

 Capital lease obligations, net of
  current portion                                  183,761      51,971
 Income tax liabilities                          2,595,135   2,595,135
 Deferred income tax liabilities                     4,460      14,162
 Total liabilities                              20,881,112  15,441,100

 Stockholders' equity

 Common stock par value $0.003 per share
 - authorized shares - 23,333,334                       --          --
 - issued shares - 5,577,639                        16,729      16,729
 Additional paid-in capital                     21,764,788  21,764,788
 Treasury stock at cost:
  2008 - 260,717 shares
  2009 - 330,736 shares                         (1,328,560) (1,462,325)
 Accumulated deficit                            (1,129,819) (8,714,233)
 Accumulated other comprehensive
  income                                         1,581,598   2,392,966
                                                20,904,736  13,997,925

 Total liabilities
  and shareholders' equity                      41,785,848  29,439,025

                    (In Thousands of U.S. Dollars)

                                                    Twelve months ended
                                                         March 31
                                                      2008       2009

 Net sales                                          45,496      40,378
 Cost of sales                                     (43,629)    (34,707)

 Gross margin                                        1,867       5,671

 Selling expenses                                     (720)       (649)
 Salaries and related costs                         (3,541)     (3,777)
 Research and development expenses                    (883)       (792)
 Administration and general expenses                (3,351)     (4,602)
 Amortization of brand name                           (200)         --
 Impairment of goodwill                               (843)         --
 Impairment of brand name                           (1,597)         --
 Impairment of share investment                       (200)         --

 (Loss) from operations                             (9,468)     (4,149)
 Gain from disposal of a subsidiary                     --         363
 Interest income                                       198         126
 Interest expenses                                    (448)       (209)
 Foreign exchange loss                                (431)       (279)
 Gain from disposal of property                      3,124         163
 Other income                                          592         706
 Waiver of loan to subsidiaries                         --      (3,690)
 Waiver of loan to subsidiaries
  held for sale                                         --      (2,181)

 Loss before income taxes                           (6,433)     (9,150)
 Income tax (expenses) benefit                         341        (208)

 Loss from continuing operations                    (6,092)     (9,358)
 (Loss) gain from discontinued
  operations, net of tax                            (2,458)      1,774

 Net loss                                           (8,550)     (7,584)

 Loss per share (in
  U.S. Dollars per share)
  Basic and diluted                                  (1.53)      (1.36)

 Weighted average shares
  (Basic and diluted)                            5,577,639   5,577,639

 The diluted net loss per share was the same as the basic net loss
 per share for the year ended Mar. 31, 2008 and 2009 as all
 potential ordinary shares, including the stock options and
 warrants, are anti-dilutive and are therefore excluded from the
 computation of diluted net loss per share.
CONTACT:  Bonso Electronics International Inc
          Albert So, Chief Financial Officer
          852 2605 5822
          Fax: 852 2691 1724
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here