HONG KONG, Oct. 30, 2009 (GLOBE NEWSWIRE) -- Bonso Electronics International Inc (Nasdaq:BNSO) today reported its annual results for the fiscal year ended March 31, 2009.
Bonso reported a net loss for the fiscal year ended March 31, 2009 of $7.6 million or $1.36 basic and diluted loss per share, as compared to a net loss of $8.6 million or $1.53 basic and diluted loss per share posted during fiscal year ended March 31, 2008. Net sales for the year ended March 31, 2009 decreased 11.2% to $40.4 million from $45.5 million for the year ended March 31, 2008.
Mr. Anthony So, President and CEO stated: "During the fiscal year ended March 31, 2009, we disposed of our Canadian subsidiary, Gram Precision Scales Inc. ("Gram"), effective as of November 1, 2008. Also, we sold the key assets of our German subsidiary, Korona Haushaltswaren GmbH & Co. KG ("Korona"), to an unaffiliated company, and we are now in the process of liquidating Korona.
"During the fiscal year ended March 31, 2009, these two subsidiaries had combined operating losses of $4.6 million. In connection with the Gram disposition, we wrote off approximately $3.7 million of inter-company receivables that were owed by Gram to Bonso. In addition, we wrote off the entire $1.7 million dollar note that we received in connection with the sale of our interest in Gram, because of uncertainty with respect to our ability to collect on that note. In connection with the sale of the assets of Korona and our decision to liquidate Korona, we recorded a $1.4 million provision for the projected liquidation cost of Korona and also wrote off approximately $2.2 million of inter-company receivables that were owed by Korona to Bonso. In connection with the reduction of staff in the PRC during the fiscal year ended March 31, 2009, we recorded a provision of approximately $0.8 million for severance payments."
Mr. So went on to state: "I am very optimistic about Bonso's future. Gram and Korona have had a significant negative impact upon our financial performance for a number of years, and our future performance looks much brighter for our shareholders without the burdens associated with those two companies."
Mr. So said further: "We maintain a strong cash position, which was $8.0 million (or $1.44 per share) as of March 31, 2009. We believe our shares are undervalued, and we intend to buy back our shares in the market. Also, we are focusing on developing new products with our existing and potential customers, and reducing our manufacturing costs and material costs, to increase our profitability."
About Bonso Electronics
Bonso Electronics designs, develops, manufactures, assembles and markets a comprehensive line of electronic scales, weighing instruments, health care products and telecommunications 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," 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.
BONSO ELECTRONICS INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEETS
(In U.S. Dollars)
March 31 March 31
2008 2009
Assets
Current assets
Cash and cash equivalents 9,653,991 8,043,535
Trade receivables, net 2,653,886 1,084,756
Inventories, net 8,446,903 6,284,293
Income tax recoverable 406,861 987,449
Other receivables, deposits and
prepayments 2,643,936 837,191
Held-to-maturity investments -- 1,000,000
Current assets of discontinued
operations 7,191,970 3,813,697
Total current assets 30,997,547 22,050,921
Deferred income tax assets 21,776 --
Goodwill -- --
Brand name and other intangible
assets, net 4,118,575 4,008,147
Other non-current assets 155,125 --
Property, plant and equipment, net 5,943,199 3,374,253
Non-current assets of discontinued
Operations 549,626 5,704
Total assets 41,785,848 29,439,025
Liabilities and stockholders' equity
Current liabilities
Bank overdrafts - secured 300,192 385,514
Notes payable 3,863,465 1,361,787
Accounts payable 5,366,138 3,103,502
Accrued charges and deposits 2,276,871 2,004,841
Income tax liabilities 6,888 6,888
Current portion of capital lease
obligations 176,930 130,201
Current liabilities
of discontinued operations 6,107,272 5,787,099
Total current liabilities 18,097,756 12,779,832
Capital lease obligations, net of
current portion 183,761 51,971
Income tax liabilities 2,595,135 2,595,135
Deferred income tax liabilities 4,460 14,162
Total liabilities 20,881,112 15,441,100
Stockholders' equity
Common stock par value $0.003 per share
- authorized shares - 23,333,334 -- --
- issued shares - 5,577,639 16,729 16,729
Additional paid-in capital 21,764,788 21,764,788
Treasury stock at cost:
2008 - 260,717 shares
2009 - 330,736 shares (1,328,560) (1,462,325)
Accumulated deficit (1,129,819) (8,714,233)
Accumulated other comprehensive
income 1,581,598 2,392,966
20,904,736 13,997,925
Total liabilities
and shareholders' equity 41,785,848 29,439,025
BONSO ELECTRONICS INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands of U.S. Dollars)
Twelve months ended
March 31
2008 2009
Net sales 45,496 40,378
Cost of sales (43,629) (34,707)
Gross margin 1,867 5,671
Selling expenses (720) (649)
Salaries and related costs (3,541) (3,777)
Research and development expenses (883) (792)
Administration and general expenses (3,351) (4,602)
Amortization of brand name (200) --
Impairment of goodwill (843) --
Impairment of brand name (1,597) --
Impairment of share investment (200) --
(Loss) from operations (9,468) (4,149)
Gain from disposal of a subsidiary -- 363
Interest income 198 126
Interest expenses (448) (209)
Foreign exchange loss (431) (279)
Gain from disposal of property 3,124 163
Other income 592 706
Waiver of loan to subsidiaries -- (3,690)
Waiver of loan to subsidiaries
held for sale -- (2,181)
Loss before income taxes (6,433) (9,150)
Income tax (expenses) benefit 341 (208)
Loss from continuing operations (6,092) (9,358)
(Loss) gain from discontinued
operations, net of tax (2,458) 1,774
Net loss (8,550) (7,584)
Loss per share (in
U.S. Dollars per share)
Basic and diluted (1.53) (1.36)
Weighted average shares
(Basic and 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 and 2009 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.