BNSO Bonso Electronics International Inc

HONG KONG, Aug. 8 /Xinhua-PRNewswire-FirstCall/ -- Bonso Electronics International, Inc (NASDAQ:BNSO) today reported net loss for the fiscal year ended March 31, 2007 was $1,371,000 or ($0.246) basic per share as compared to net income of $484,000 or $0.09 basic per share posted during the same period last year. Net sales for the year ended March 31, 2007 increased 3.0% to $66,491,000 from net sales of $64,543,000 for the year ended March 31, 2006. The results for the fourth fiscal quarter ended March 31, 2007 was a net loss of $1,682,000 or ($0.302) basic per share on net sales of $10,789,000. This represented a decrease of 24.6% in sales as compared to $14,308,000 posted during the same period last year and an increase of 408.2% in net loss as compared to net loss of $331,000 or ($0.059) basic per share as posted during the same period last year. Mr. Anthony So, President and CEO stated: "There are two primary factors which negatively impacted our earnings. One of the factors is due to the water damage approximately $701,000 of inventory at our warehouse in Germany. This was caused by the overflow of a river located near to our warehouse. We are now in the process of negotiating with our insurance carrier for compensation of our losses. The other factor is due to a large tax provision we made that results in the increase of the tax expense from $131,000 in prior year to $918,000 during the year ended March 31, 2007. The increase was primarily the result of assessing the impact of the new developments of tax rules in the various tax jurisdictions that the group's subsidiaries are operating. We have performed the assessment in pursuant to FASB No. 5 "Accounting for Contingencies" and made a provision of $737,000 in relation to this contingent liability." Mr. So said further: "We still maintain a strong cash position -- which at the end of the year is $8.1 million ($1.46 per share). Undoubtedly, Bonso's profit performance was disappointing last year but we are operating in a challenging market notwithstanding, we remain optimistic in the growth plan and cost reduction program we are implementing." 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 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. -- Tables to Follow - - BONSO ELECTRONICS INTERNATIONAL INC. CONSOLIDATED BALANCE SHEET (In U.S. Dollars) 31-Mar 31-Mar 2007 2006 (Unaudited) (Unaudited) Assets Current assets Cash and cash equivalents 8,118,018 8,582,257 Trade receivables, net 6,739,567 6,740,229 Inventories, net 14,997,788 15,035,216 Tax recoverable 2,117 78,735 Investment 700,000 -- Other receivables, deposits and prepayments 2,678,328 2,165,479 Total current assets 33,235,818 32,601,916 Deposits -- 90,711 Long term investment -- 500,000 Deferred income tax assets 87,369 82,529 Goodwill 842,821 842,821 Brand name and other intangible assets, net 2,313,434 2,526,982 Property, plant and equipment, net 11,039,173 12,833,929 Total assets 47,518,615 49,478,888 Liabilities and shareholders' equity Current liabilities Bank overdraft 459,710 471,254 Notes payable 3,736,526 3,310,673 Accounts payable 5,354,326 6,288,213 Accrued charges and deposits 2,357,132 2,434,994 Income tax payable 814,374 -- Short-term loans 3,576,366 2,936,467 Current portion of long-term debts and capital lease obligations 95,725 215,131 Total current liabilities 16,394,159 15,656,732 Capital lease obligations, net of current maturities 59,258 -- Deferred income tax liabilities 13,901 19,863 Total Liabilities 16,467,318 15,676,595 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 20,747,430 21,764,788 Retained earnings 9,273,761 11,234,006 Common stock held at treasury (260,717 shares at par) (782) -- Accumulated other comprehensive income 1,014,159 786,770 31,051,297 33,802,293 Total liabilities and shareholders' equity 47,518,615 49,478,888 BONSO ELECTRONICS INTERNATIONAL INC. CONSOLIDATED INCOME STATEMENT (In Thousands of U.S. Dollars) Three months ended Twelve months ended MAR 31 MAR 31 2007 2006 2007 2006 (Unaudited) (Unaudited)(Unaudited)(Unaudited) Net sales 10,789 14,308 66,491 64,543 Cost of sales (7,873) (10,565) (53,946) (51,114) Gross margin 2,916 3,743 12,545 13,429 Selling expenses 592 487 2,477 2,111 Salaries and related costs 1,186 1,433 5,438 5,681 Research and development expenses 640 466 983 847 Administration and general expenses 601 1,141 3,004 3,421 Amortization of brand name 50 50 200 200 Loss from water damage 701 -- 701 -- Impairment of goodwill -- 258 -- 258 (Loss)Income from operations (854) (92) (258) 911 Interest income 120 42 313 202 Other income 136 17 302 190 Interest expenses (192) (134) (626) (504) Foreign exchange loss (12) (68) (184) (184) (Loss)Income before income taxes and minority interest (802) (235) (453) 615 Income tax expense (880) (96) (918) (131) Net(loss) Income before minority interest (1,682) (331) (1,371) 484 Minority interests -- -- -- -- Net (loss)Income (1,682) (331) (1,371) 484 Earnings per share (in U.S.Dollars per share) Basic -0.302 -0.059 -0.246 0.090 Diluted -0.302 -0.059 -0.246 0.080 Weighted average shares (Basic) 5,577,639 5,577,639 5,577,639 5,577,639 Weighted average shares (Diluted) 5,577,639 5,577,639 5,577,639 5,937,644 The diluted net loss per share was the same as the basic net loss per share for the year ended Mar 31, 2007 as all 305,009 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. For more information about Bonso, please contact: Henry Ma Chief Financial Officer Tel: +852-2605-5822 Fax: +852-2691-1724 DATASOURCE: Bonso Electronics International, Inc. CONTACT: Henry Ma, CFO of Bonso, +852-2605-5822, fax +852-2691-1724 Web site: http://www.bonso.com/

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