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
CONTACT: Bonso Electronics International, Inc. Albert So, Financial Controller 852 2605 5822 Fax: 852 2691 1724