Bonso Electronics (NASDAQ:BNSO)
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TORTOLA, British Virgin Island, March 27 /Xinhua-PRNewswire-FirstCall/ -- Bonso Electronics International, Inc. (NASDAQ:BNSO) a designer and manufacturer of sensor based and communications products, today announced financial results for the second quarter ended 30 September 2007.
The company reported that net sales for the three-month period ended 30 September 2007 decreased by 5.8% to $19,505,000 as compared to $20,710,000 during the same period last year. Net income dropped by 429.8% to a loss of $1,593,000 or $0.28 per share (diluted) as compared to an income of $483,000 or $0.08 per share (diluted) during the same period last year.
Net sales for the six month period ended 30 September 2007 was $35,607,000, which was 3.3% below $36,831,000 in the same period last year. Net income for the six month period ended 30 September 2007 was a loss of $1,350,000 or $0.23 per share (diluted), a 243.5% decrease when compared to the net income of $941,000 or $0.15 per share (diluted) in the same period last year.
Mr. Anthony So, Bonso's Chairman, President and CEO stated: "Our sensor based product sales were 16.5% down from last year; however, the market demand for our telecommunication products and services remained strong and increased by about 33.6%. Like many other businesses in this competitive environment, we have been facing increasing price pressure from rising crude oil, higher metal and raw material price, together with rising labor cost in China. Comparing with the same period last year, the gross profit margin in the second quarter has dropped from 17.8% to 6.9%. We expect the new launched operational restructuring and strategic plan would help bring the profit margin back to normal level (15% to 18%) in the fourth quarter in this fiscal year.
Mr. So further stated, "Our focus for the second half of the year is on our core business with existing customers and looking forward to new potential customers in our niche markets of sensor based and telecommunication products with the right product mix.
"Our efforts upon the continue progress we have made in strengthening our Balance Sheet put the cash position at the end of the second quarter is $9.9 million, or approximately $1.76 per share."
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 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 "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 in this issue.
-- Tables to Follow --
BONSO ELECTRONICS INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(In U.S. Dollars)
Sep 30, Mar 31,
2007 2007
(Unaudited) (Unaudited)
Assets
Current assets
Cash and cash equivalents 9,923,622 8,118,018
Trade receivables, net 9,826,842 6,739,567
Inventories, net 14,666,759 14,997,788
Tax recoverable 324,552 2,117
Other receivables, deposits and
prepayments 3,233,289 2,678,328
Investment 700,000 700,000
Total current assets 38,675,064 33,235,818
Deferred income tax assets 87,369 87,369
Goodwill 842,821 842,821
Brand name and other intangible
assets, net 2,295,531 2,313,434
Property, plant and equipment, net 10,273,067 11,039,173
Total assets 52,173,852 47,518,615
Liabilities and shareholders' equity
Current liabilities
Bank overdraft 461,708 459,710
Notes payable 5,976,764 3,736,526
Accounts payable 9,281,464 5,354,326
Accrued charges and deposits 1,898,699 2,357,132
Short-term loans 3,998,962 3,576,366
Income tax payable 754,673 814,374
Current portion of long-term debts
and capital lease obligations 189,005 95,725
Total current liabilities 22,561,275 16,394,159
Long-term debt and capital lease
obligations, net of current
maturities 280,070 59,258
Deferred income tax liabilities 13,901 13,901
Total Liabilities 22,855,246 16,467,318
Shareholders' equity
Preferred stock par value $0.01 per
share
-authorized shares -- 10,000,000 -- --
-issued and outstanding shares:
September 30, 2007 and March
31, 2007
Common stock par value $0.003
per share
- authorized shares -- 23,333,334 -- --
- issued and outstanding shares:
September 30, 2007 and March
31, 2007 -- 5,577,639 16,729 16,729
Additional paid-in capital 21,764,788 21,764,788
Treasury stock -1,328,560 -1,328,560
Retained earnings 8,232,109 9,584,181
Accumulated other comprehensive
income 633,540 1,014,159
29,318,606 31,051,297
Total liabilities and shareholders'
equity 52,173,852 47,518,615
BONSO ELECTRONICS INTERNATIONAL INC.
CONSOLIDATED INCOME STATEMENT
(In Thousands of U.S. Dollars)
Three months ended Six months ended
SEP 30 SEP 30
2007 2006 2007 2006
(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Net sales 19,505 20,710 35,607 36,831
Cost of sales (18,159) (17,023) (31,184) (29,866)
Gross margin 1,346 3,687 4,423 6,965
Selling expenses 578 729 1,176 1,256
Salaries and related costs 1,544 1,474 2,970 2,793
Research and development
expenses 161 125 266 236
Administration and general
expenses 744 716 1,598 1,464
Amortization of brand name 50 50 100 100
(Loss)Income from
operations (1,731) 593 (1,687) 1,116
Interest income 44 75 75 123
Other income 172 40 264 96
Interest expenses (170) (154) (304) (271)
Foreign exchange gain(loss) 94 (71) 305 (101)
Impairment of Goodwill 0 0 -- --
(Loss)Income before income taxes
and minority interest (1,591) 483 (1,347) 963
Income tax expense (2) 0 (3) (22)
Net (loss) Income before
minority interest (1,593) 483 (1,350) 941
Minority interests -- -- -- --
Net (loss)Income (1,593) 483 (1,350) 941
Earnings per share (in
U.S.Dollars per share)
Basic -0.285 0.086 -0.242 0.168
Diluted -0.282 0.081 -0.239 0.158
Weighted average shares
(Basic) 5,577,639 5,577,639 5,577,639 5,577,639
Weighted average shares
(Diluted) 5,646,810 5,945,411 5,646,810 5,945,411
For more information about Bonso, please contact:
Albert So
Financial Controller
Tel: +852-2605-5822
Fax: +852-2691-1724
DATASOURCE: Bonso Electronics International, Inc.
CONTACT: Albert So of Bonso, +852-2605-5822, fax +852-2691-1724
Web site: http://www.bonso.com/