Bonso Electronics Reports Half Year Results

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
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