HONG KONG, Nov. 21, 2008 (GLOBE NEWSWIRE) -- Bonso Electronics International, Inc. (Nasdaq:BNSO) today reported that it had been notified by the NASDAQ Stock Market (the "NASDAQ") that Bonso had demonstrated compliance with the NASDAQ's requirements for continued listing as set forth in Marketplace Rule 4320(e)(12), because the Company had filed its Annual Report on Form 20-F for the fiscal year ended March 31, 2008, with the United States Securities & Exchange Commission ("SEC"). NASDAQ confirmed that the listing review is now closed and that Bonso's common stock will remain listed on The NASDAQ Global Market.
Bonso reported a net loss for the fiscal year ended March 31, 2008 of $8,550,000 or ($1.53) basic and diluted earnings per share, as compared to a net loss of $1,371,000 or ($0.25) basic and diluted earnings per share posted during the same period in the prior year. Net sales for the year ended March 31, 2008 decreased 5.7% to $62,687,000 from net sales of $66,491,000 for the year ended March 31, 2007.
Mr. Anthony So, President and CEO stated: "During the fiscal year ended March 31, 2008, we recognized impairment of $2.4 million for the goodwill and brand name related to our subsidiaries in Germany and Canada, because of the subsidiaries' continued poor operating performance. Also, we wrote off $2.5 million for obsolete inventory. While these factors negatively impacted our reported earnings, they did not have any cash impact to the company." Mr. So said that Bonso experienced higher materials costs during the year, and an increase in administrative and general expenses as well, which contributed to the net loss. In addition, we recorded a provision of approximately $2,164,000 in relation to uncertain tax positions as of April 1, 2007.
Mr. So said further: "We are taking steps to eliminate losing businesses from the Group, and to minimize costs where possible. We maintain a strong cash position, which was $10.2 million (or $1.83 per share) as of March 31, 2008, an increase of 26% as compared to $8.1 million as of March 31, 2007. Being aware of the global economic downturn in 2008, and its unpredictable impact and duration, we intend to focus our efforts on cost reduction and product development, in an effort to return to profitability and meet the requirements of our customers."
About Bonso Electronics
Headquartered in Hong Kong, Bonso Electronics designs, develops, manufactures, assembles and markets a comprehensive line of telecommunications products, electronic scales and weighing instruments. Bonso products are manufactured in the People's Republic of China with 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. For further information, visit the company's website 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 other 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.
BONSO ELECTRONICS INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(In U.S. Dollars)
31-Mar 31-Mar
2008 2007
Assets
Current assets
Cash and cash equivalents 10,195,362 8,118,018
Trade receivables, net 5,264,074 6,739,567
Inventories, net 11,391,318 14,997,788
Tax recoverable 2,117 2,117
Investment -- 700,000
Other receivables, deposits and
prepayments 4,144,676 2,678,328
Total current assets 30,997,547 33,235,818
Deferred income tax assets 191,618 87,369
Goodwill -- 842,821
Brand name and other intangible
assets, net 502,494 2,313,434
Other non-current assets 155,125 --
Property, plant and equipment, net 9,939,064 11,039,173
Total assets 41,785,848 47,518,615
Liabilities and shareholders' equity
Current liabilities
Bank overdraft 811,354 459,710
Notes payable 3,863,465 3,736,526
Accounts payable 5,985,403 5,354,326
Accrued charges and deposits 3,359,557 2,357,132
Income tax payable 6,888 814,374
Short-term loans 3,894,159 3,576,366
Current portion of long-term debts
and capital lease obligations 176,930 95,725
Total current liabilities 18,097,756 16,394,159
Capital lease obligations, net of
current maturities 183,761 59,258
Income tax liabilities 2,595,135 --
Deferred income tax liabilities 4,460 13,901
Total Liabilities 20,881,112 16,467,318
Shareholders' equity
Preferred stock par value $0.01 per
share
-authorized shares - 10,000,000 -- --
-issued and outstanding shares :
March 2007 & 2006-nil
Common stock par value $0.003 per share
- authorized shares - 23,333,334 -- --
-issued and outstanding shares :
March 2007 & 2006 - 5,577,639 16,729 16,729
Additional paid-in capital 21,764,788 21,764,788
Retained earnings (1,129,819) 9,584,181
Common stock held at treasury
(260,717 shares at par) (1,328,560) (1,328,560)
Accumulated other comprehensive
income 1,581,598 1,014,159
20,904,736 31,051,297
Total liabilities and shareholders'
equity 41,785,848 47,518,615
BONSO ELECTRONICS
INTERNATIONAL INC.
CONSOLIDATED INCOME STATEMENT
(In Thousands of U.S. Dollars)
Twelve months ended
MAR 31
2008 2007
Net sales 62,687 66,491
Cost of sales (57,683) (53,946)
Gross margin 5,004 12,545
Selling expenses 2,480 2,477
Salaries and related costs 5,781 5,438
Research and development expenses 883 983
Administration and general expenses 4,638 3,004
Amortization of brand name 200 200
Loss from water damage -- 701
Impairment of goodwill 843 --
Impairment of brand name 1,597 --
Impairment of share Investment 200 --
(Loss) from operations (11,618) (258)
Interest income 203 313
Other income 3,440 302
Interest expenses (693) (626)
Foreign exchange loss (216) (184)
(Loss)/Income before income
taxes and minority interest (8,884) (453)
Income tax expense 334 (918)
Net(loss)/Income before
minority interest (8,550) (1,371)
Minority interests -- --
Net (loss)/Income (8,550) (1,371)
Earnings per share (in
U.S.Dollars per share)
Basic (1.53) (0.25)
Diluted (1.53) (0.25)
Weighted average shares (Basic) 5,577,639 5,577,639
Weighted average shares (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 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.