omniture

Bonso Electronics Reports Results for the Second Quarter Ended 30 September 2007

Bonso Electronics International, Inc.
2008-03-27 19:37 985

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

Source: Bonso Electronics International, Inc.
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