BNSO Bonso Electronics International Inc

TORTOLA, British Virgin Island, Feb. 15 /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 three and nine month periods ended 31 December 2006. For the third quarter ended 31 December 2006, Bonso's sales were approximately $18.9 million, or 17% above the same quarter in 2005. Despite the increase in turnover, the Company had a net loss of approximately $630,000 or $0.109 per share (diluted) as compared to a net loss of approximately $76,000 or $0.013 per share (diluted) posted for the same period last year. Sales for the nine-month period ended 31 December 2006, were approximately $55.7 million, an increase of 11.0% compared to sales of approximately $50.2 million in the comparable period in 2005. Net income for the nine-month period ended 31 December 2006 was $311,000 or $0.054 per share (diluted), which is 62% below the net income of $815,000 or $0.139 reported for the same period last year. Mr. Anthony So, President and CEO stated: 'There are two primary factors which negatively impacted our gross profit margin. We suffered water damage to approximately $678,000 of inventory at our Germany warehouse. The water damage resulted from a heavy rain which caused a river near where our warehouse is located to overflow. We are now in the process of negotiating with our insurance carrier for compensation of the loss. The other major factor is the loss of approximately $199,000 relating to the return of defective scales for repair. All of these defective scales will be repaired and shipped back to our customer in March 2007.' Mr. So said further: 'We still maintain a strong cash position and our cash position at the end of the third quarter was approximately $13 million ($2.33 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. Attachments: 1. Balance Sheet 2. Income Statement BONSO ELECTRONICS INTERNATIONAL INC. CONSOLIDATED INCOME STATEMENT (In Thousands of U.S. Dollars) Unaudited Three months ended Nine months ended December 31 December 31 2006 2005 2006 2005 Net sales 18,871 16,123 55,702 50,235 Cost of sales -16,207 -13,169 -46,073 -40,549 Gross profit margin 2,664 2,954 9,629 9,686 Selling expenses 629 517 1,885 1,624 Salaries and related costs 1,459 1,505 4,252 4,248 Research and development expenses 107 109 343 381 Administration and general expenses 939 664 2,403 2,280 Amortization of Brand Name 50 50 150 150 (Loss)/Income from operations -520 109 596 1,003 Interest Income 70 74 193 160 Other income 70 -82 166 173 Interest Expenses -163 -150 -434 -370 Foreign exchange gains (Loss) 71 3 -172 -116 -- 0 -- -- (Loss)/Income before income taxes -614 -46 349 850 Income tax expense -16 -30 -38 -35 Net (Loss)/ income -630 -76 311 815 Earnings per share Basic -0.113 -0.014 0.056 0.146 Diluted -0.109 -0.013 0.054 0.139 Weighted average shares 5,577,639 5,577,639 5,577,639 5,577,639 Adjusted weighted average shares 5,795,249 5,843,949 5,795,249 5,843,949 BONSO ELECTRONICS INTERNATIONAL INC. CONSOLIDATED BALANCE SHEET (In U.S. Dollars) 31-Dec 31-Mar 2006 2006 (Unaudited) (Audited) Assets Current assets Cash and cash equivalents 12,987,806 8,582,257 Trade receivables, net 6,576,460 6,740,229 Inventories, net 14,351,144 15,035,216 Tax recoverable 393,288 183,393 Other receivables, deposits and prepayments 3,116,540 1,963,007 Total current assets 37,425,238 32,504,102 Deposits 190,013 188,525 Long term investment 947,285 500,000 Deferred income tax assets - non current 95,917 82,529 Goodwill 842,821 842,821 Brand name,other intengible asset net 2,365,974 2,526,982 Property, plant and equipment, net 11,560,242 12,833,929 Total assets 53,427,490 49,478,888 Current liabilities Bank overdraft 467,691 471,254 Notes payable 7,521,471 3,310,673 Accounts payable 5,109,735 6,288,213 Accrued charges and deposits 2,215,843 2,434,994 Short-term loans 3,955,580 2,936,467 Current portion of long-term debt and capital lease obligations 80,019 215,131 Total current liabilities 19,350,339 15,656,732 Deferred income tax 19,915 19,863 Total Liabilities 19,370,254 15,676,595 Shareholders' equity Preferred stock par value $0.01 per share -authorized shares - 10,000,000 -issued and outstanding shares : March 2006 & December 2006-nil -- -- Common stock par value $0.003 per share - authorized shares - 23,333,334 - issued and outstanding shares : March 2006 & December 2006 - 5,577,639 16,729 16,729 Additional paid-in capital 21,764,788 21,764,788 Retained earnings 11,265,694 11,234,006 Treasury stock -11,955 -- Accumulated other comprehensive income 1,021,980 786,770 34,057,236 33,802,293 Total liabilities and shareholders' equity 53,427,490 49,478,888 -- -- DATASOURCE: Bonso Electronics International, Inc. CONTACT: Cathy Pang, +852-2605-5822, or fax, +852-2691-1724, of Bonso Electronics Web site: http://www.bonso.com/

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