HONG KONG, Jan. 23, 2015 (GLOBE NEWSWIRE) -- Bonso Electronics International, Inc. (Nasdaq:BNSO) today announced its unaudited results for the six-month period ended September 30, 2014.
Bonso reported a net loss for the six-month period ended September 30, 2014 of $0.17 million or $0.03 basic and diluted loss per share, as compared to a net loss of $0.36 million or $0.07 basic and diluted loss per share posted during the six-month period ended September 30, 2013. Net sales for the six-month period ended September 30, 2014 decreased 5.2% to $14.5 million from $15.3 million for the six-month period ended September 30, 2013.
Mr. Anthony So, President and Chief Executive Officer, stated that in our last Annual Report on Form 20-F we advised that "in seeking to return to profitability, we had analysed our product mix and concluded that we were most likely to return to profitability if we eliminated the production and sale of lower margin products that required the employment of larger numbers of workers and the commitment of substantial resources to carry or stock raw materials and components inventory." We had discussions with our largest customers for lower margin electronic scale products and advised that without substantial price increases, we would not be in position to continue manufacturing those products. The customers did not agree to the price increases that we requested, and began shifting this lower margin business to alternative suppliers. Mr. So said "we believe that revenue will further decrease in the future, and our profit margins will improve." Also, "management believes that the Company will achieve higher return from investment in the future as a result of this strategic decision together with the extra rental income generated from the Shenzhen factory."
About Bonso Electronics
Bonso Electronics designs, develops, manufactures, assembles and markets a comprehensive line of electronic scales, weighing instruments, health care products and pet electronics 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 as ''should,'' ''intends,'' ''is subject to,'' ''expects,'' ''will,'' ''continue,'' ''anticipate,'' ''estimated,'' ''projected,'' ''may,'' ''I or we believe,'' ''future prospects,'' "our strategy" or similar expressions. Forward-looking statements made in this press release, which relate to the reduction of losses and a positive impact upon our future operations as a result of the sale of assets involve known and unknown risks and uncertainties that may cause the actual results to differ materially from those expected and stated in this announcement. We undertake no obligation to update "forward-looking" statements.
The diluted net loss per share was the same as the basic net loss per share for the six-month periods ended September 30, 2013 and 2014 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.
-- Tables to Follow --
| Consolidated Balance Sheets | ||
| (Expressed in United States Dollars) | ||
| September 30 | March 31 | |
| 2014 | 2014 | |
| $ in thousands | $ in thousands | |
| (unaudited) | (Audited) | |
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | 305 | 116 |
| Fixed deposits maturing over three months | 1,049 | 1,049 |
| Trade receivables, net | 3,163 | 2,480 |
| Inventories | 5,810 | 7,545 |
| Income tax recoverable | 2,162 | 1,739 |
| Other receivables, deposits and prepayments | 1,387 | 1,782 |
| Receivable from affiliated party | -- | 166 |
| Total current assets | 13,876 | 14,877 |
| Investment in life settlement contracts | 131 | 131 |
| Other intangible assets | 4,253 | 4,387 |
| Other deposits - non current assets | 293 | 293 |
| Property, plant and equipment, net | 11,121 | 12,452 |
| Total assets | 29,674 | 32,140 |
| Liabilities and stockholders' equity | ||
| Current liabilities | ||
| Bank overdrafts - secured | -- | 630 |
| Notes payable | 2,156 | 2,527 |
| Accounts payable | 8,412 | 10,413 |
| Accrued charges and deposits | 1,455 | 2,597 |
| Income tax liabilities | 7 | 7 |
| Short-term bank loans | 2,911 | 2,320 |
| Payable to affiliated party | -- | 10 |
| Current portion of long-term debt and capital lease obligations | 22 | 23 |
| Financial instruments at fair value | 119 | 119 |
| Total current liabilities | 15,082 | 18,646 |
| Long-term bank loans | 2,180 | -- |
| Financial instruments at fair value - non current portion | 208 | 208 |
| Capital lease obligations, net of current portion | 58 | 69 |
| Income tax liabilities | 2,595 | 2,595 |
| Stockholders' equity | ||
| Common stock par value $0.003 per share | ||
| - authorized shares - 23,333,334 | ||
| - issued shares: Sep 30, 2014 and Mar 31, 2014 - 5,577,639, outstanding shares: Sep 30, 2014 and Mar 31, 2014 – 5,246,903 shares | 17 | 17 |
| Additional paid-in capital | 21,765 | 21,765 |
| Treasury stock at cost: Sep 30, 2014 and Mar 31, 2014 - 330,736 shares | (1,462) | (1,462) |
| Accumulated deficit | (12,979) | (12,809) |
| Accumulated other comprehensive income | 2,210 | 3,111 |
| 9,551 | 10,622 | |
| Total liabilities and stockholders' equity | 29,674 | 32,140 |
| Consolidated Statements of Operations and Comprehensive Loss | ||
| (Expressed in United States Dollars) | ||
|
Six months ended September 30, 2014 |
Six months ended September 30, 2013 |
|
| $ in thousands | $ in thousands | |
| (unaudited) | (unaudited) | |
| Net sales | 14,579 | 15,374 |
| Cost of sales | (12,243) | (12,464) |
| Gross profit | 2,336 | 2,910 |
| Selling expenses | (498) | (190) |
| Salaries and related costs | (1,197) | (1,477) |
| Research and development expenses | (201) | (204) |
| Administration and general expenses | (1,131) | (1,147) |
| Other income | 616 | 16 |
| Loss from operations | (75) | (92) |
| Interest income | 1 | 1 |
| Interest expenses | (74) | (43) |
| Foreign exchange loss | (22) | (222) |
| Net loss | (170) | (356) |
| Other comprehensive loss, net of tax: | ||
| Foreign currency translation adjustments, net of tax | (901) | (349) |
| Comprehensive loss | (1,071) | (705) |
| Loss per share | ||
| Weighted average number of shares outstanding | 5,246,903 | 5,246,903 |
| Loss per share ( in U.S.Dollars per share) | ||
| - basic and diluted | (0.03) | (0.07) |