BNSO Bonso Electronics International Inc

TORTOLA, British Virgin Island, Nov. 2 /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 first quarter ended 30 June 2007. The company reported sales of $16,102,000 and net earnings of $243,000 or 4.3 cents per share (diluted) for the three months period ended 30 June 2007. This represents a decrease of 0.1 % in sales and a decrease of 46.9 % in net income as compared to sales of $16,121,000 and net income of $458,000 or 8.1 cents per share (diluted) posted during the same period last year. Telecommunication product sales surpassed last year's volume but not enough to make up for the shortfall in Sensor based product sales. We are cautiously optimistic about future increases in sensor based product sales. Anthony So, Bonso's Chairman said "Going forward, we intend to continue to focus on servicing our existing customer base while providing value added solutions to new potential customers in our niche markets of sensor based and telecommunication products." "We intend to continue to make efforts to continue the progress we have made in strengthening our Balance Sheet. Our cash position at the end of the quarter is $8.8 million, or approximately $1.57 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. -- Tables to follow - BONSO ELECTRONICS INTERNATIONAL INC. CONSOLIDATED INCOME STATEMENT (In Thousands of U.S. Dollars) Three months ended June 30 2007 2006 (Unaudited) (Unaudited) Net sales 16,102 16,121 Cost of sales (13,025) (12,843) Gross margin 3,077 3,278 Selling expenses 598 527 Salaries and related costs 1,426 1,319 Research and development expenses 105 111 Administration and general expenses 854 748 Amortization of brand name 50 50 Income from operations 44 523 Interest Income 31 48 Other income 92 56 Interest Expenses (134) (117) Foreign exchange gains (Loss) 211 (30) Income/(loss) before income taxes 244 480 Income tax expense (1) (22) Net income/(loss) before minority interest 243 458 Net income/(loss) 243 458 Earnings per share ( in U.S. Dollars per share) Basic 0.044 0.082 Diluted 0.043 0.081 Weighted average shares (Basic) 5,577,639 5,577,639 Adjusted weighted average shares (diluted) 5,646,810 5,667,085 BONSO ELECTRONICS INTERNATIONAL INC. CONSOLIDATED BALANCE SHEET (In U.S. Dollars) 30-Jun 31-Mar 2007 2007 (Unaudited) (Unaudited) Assets Current assets Cash and cash equivalents 8,779,578 8,118,018 Trade receivables, net 6,977,212 6,739,567 Inventories, net 15,850,748 14,997,788 Tax recoverable 193,806 2,117 Other receivables, deposits and prepayments 3,706,768 2,678,328 Investment 700,000 700,000 Total current assets 36,208,112 33,235,818 Deferred income tax assets 87,369 87,369 Goodwill 842,821 842,821 Brand name and other intangible asset, net 2,263,434 2,313,434 Property, plant and equipment, net 10,646,442 11,039,173 Total assets 50,048,178 47,518,615 Liabilities and shareholders' equity Current liabilities Bank overdraft 352,642 459,710 Notes payable 2,693,156 3,736,526 Accounts payable 8,677,694 5,354,326 Accrued charges and deposits 2,301,772 2,357,132 Short-term loans 4,056,729 3,576,366 Income tax liabilities 754,673 814,374 Current portion of capital lease obligations 95,725 95,725 Total current liabilities 18,932,391 16,394,159 Capital lease obligations, net of current portion 35,327 59,258 Deferred income tax liabilities 13,901 13,901 Total Liabilities 18,981,619 16,467,318 Shareholders' equity Common stock par value $0.003 per share - authorized shares - 23,333,334 - issued and outstanding shares: June & March 2007 - 5,577,639 16,729 16,729 Additional paid-in capital 21,764,788 21,764,788 Retained earnings 9,827,186 9,584,181 Accumulated other comprehensive income 786,416 1,014,159 Common stock held at treasury stock (260,717 shares) (1,328,560) (1,328,560) Total shareholders' equity 31,066,559 31,051,297 Total liabilities and shareholders' equity 50,048,178 47,518,615 DATASOURCE: Bonso Electronics CONTACT: Arthur Yu of Bonso, +852-2605-5822, fax +852-2691-1724 Web site: http://www.bonso.com/

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