HONG KONG, Dec. 1, 2011 (GLOBE NEWSWIRE) -- Bonso Electronics International, Inc. (Nasdaq:BNSO), a designer and manufacturer of sensor based products, reported its financial results for the fiscal year ended March 31, 2011.
The company reported a net loss for the fiscal year ended March 31, 2011, of $1.56 million or $0.29 basic and diluted loss per share. Net sales for the fiscal year ended March 31, 2011 decreased 0.5% to $28.4 million from $28.5 million for the fiscal year ended March 31, 2010. Sales of scales and other business increased 3.2% and sales for telecommunications products decreased 32.0%. The increase in sales for scales and other business was the result of increased demand for consumer electronics scale products. The decrease in sales for telecommunications products was caused by the continuation of the Company's decision to give up orders for telecommunications products with low profit margins. Bonso's gross margin as a percentage of revenue decreased to approximately 12.8% during the fiscal year ended March 31, 2011, as compared to approximately 17.0% during the fiscal year ended March 31, 2010. The lower gross margin was primarily the result of the increased prices of raw materials and increased labor costs mainly due to an increase in the minimum wage in China.
Anthony So, the Chairman of Bonso, stated, "We have faced increasing cost pressure as the result of inflation, increased prices of raw materials, and increased labor costs. We are fortunate that we have been able to raise our selling price on products to our major customers to offset the impact of these factors. In addition, we face the continuing challenge of the appreciation of the Chinese Yuan against the United States Dollar. Traditionally, we have sold our products in US dollars and paid our costs of manufacturing in Chinese Yuan since our manufacturing facilities are located in China." Mr. So said, "I am very pleased to announce that after lengthy negotiations with some of our customers, they have agreed to purchase products in Chinese Yuan instead of the United States Dollar."
Mr. So said, "We expect that demand for our products will continue to grow, and we are very optimistic about new products under development with large Fortune 500 companies, that will launch in year 2012."
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.
-- Tables to Follow --
| Consolidated Balance Sheets | ||
| (Expressed in United States Dollars) | ||
| March 31 | ||
| 2010 | 2011 | |
| $ in thousands | $ in thousands | |
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | 8,085 | 5,407 |
| Trade receivables, net | 1,324 | 1,311 |
| Other receivables, deposits and prepayments | 1,359 | 708 |
| Inventories | 4,990 | 4,848 |
| Income tax recoverable | 1,569 | 1,944 |
| Current assets of discontinued operations | 200 | 5 |
| Total current assets | 17,527 | 14,223 |
| Brand name and other intangible assets, net | 3,855 | 4,031 |
| Property, plant and equipment | ||
| Buildings | 9,602 | 9,719 |
| Construction-in-progress | 476 | 1,801 |
| Plant and machinery | 20,037 | 20,884 |
| Furniture, fixtures and equipment | 3,288 | 3,146 |
| Motor vehicles | 448 | 445 |
| 33,851 | 35,995 | |
| Less: accumulated depreciation and impairment | (31,544) | (32,437) |
| Property, plant and equipment, net | 2,307 | 3,558 |
| Total assets | 23,689 | 21,812 |
| Liabilities and stockholders' equity | ||
| Current liabilities | ||
| Bank overdrafts – secured | 69 | -- |
| Notes payable | 2,095 | 1,333 |
| Accounts payable | 2,632 | 2,729 |
| Accrued charges and deposits | 1,934 | 2,199 |
| Income tax liabilities | 7 | 24 |
| Current portion of capital lease obligations | 52 | -- |
| Current liabilities of discontinued operations | 1,098 | 1,086 |
| Total current liabilities | 7,887 | 7,371 |
| Income tax liabilities | 2,595 | 2,595 |
| Deferred income tax liabilities | 19 | 19 |
| Stockholders' equity | ||
| Common stock par value $0.003 per share | ||
| - authorized shares - 23,333,334 | ||
|
- issued shares: 2010 and 2011- 5,577,639, - outstanding shares: 2010 and 2011 – 5,246,903 |
17 | 17 |
| Additional paid-in capital | 21,765 | 21,765 |
| Treasury stock at cost: 2010 and 2011 - 330,736 shares | (1,462) | (1,462) |
| Accumulated deficit | (9,372) | (10,932) |
| Accumulated other comprehensive income | 2,240 | 2,439 |
| 13,188 | 11,827 | |
| Total liabilities and stockholders' equity | 23,689 | 21,812 |
| Consolidated Statements of Operations and Comprehensive Loss | |||
| (Expressed in United States Dollars) | |||
| Year ended March 31, | |||
| 2010 | 2011 | ||
| $ in thousands | $ in thousands | ||
| Net sales | 28,543 | 28,387 | |
| Cost of sales | (23,693) | (24,760) | |
| Gross profit | 4,850 | 3,627 | |
| Selling expenses | (375) | (249) | |
| Salaries and related costs | (2,539) | (2,716) | |
| Research and development expenses | (580) | (334) | |
| Administration and general expenses | (2,011) | (1,959) | |
| Loss from operations | (655) | (1,631) | |
| Interest income | 103 | 6 | |
| Interest expenses | (69) | (56) | |
| Foreign exchange loss | (522) | (130) | |
| Gain on disposal of property | -- | 155 | |
| Gain on disposal of intangible assets | -- | 41 | |
| Other income | 620 | 184 | |
| Loss before income taxes | (523) | (1,431) | |
| Income tax expense | (9) | -- | |
| Loss from continuing operations | (532) | (1,431) | |
| Loss from discontinued operations, net of tax | (126) | (129) | |
| Net loss | (658) | (1,560) | |
| Other comprehensive income, net of tax: | |||
| Foreign currency translation adjustments, net of tax | (152) | 199 | |
| Comprehensive loss | (810) | (1,361) | |
| Loss per share | |||
| Weighted average number of shares outstanding | 5,246,903 | 5,246,903 | |
| - basic and diluted | |||
| -Continuing operations | (0.10) | (0.27) | |
| -Discontinued operations | (0.03) | (0.02) | |
| (0.13) | (0.29) | ||
The diluted net loss per share was the same as the basic net loss per share for the fiscal year ended Mar 31, 2010 and 2011 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.