BNSO Bonso Electronics International Inc

TORTOLA, British Virgin Island, March 27 /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 second quarter ended 30 September 2007. The company reported that net sales for the three-month period ended 30 September 2007 decreased by 5.8% to $19,505,000 as compared to $20,710,000 during the same period last year. Net income dropped by 429.8% to a loss of $1,593,000 or $0.28 per share (diluted) as compared to an income of $483,000 or $0.08 per share (diluted) during the same period last year. Net sales for the six month period ended 30 September 2007 was $35,607,000, which was 3.3% below $36,831,000 in the same period last year. Net income for the six month period ended 30 September 2007 was a loss of $1,350,000 or $0.23 per share (diluted), a 243.5% decrease when compared to the net income of $941,000 or $0.15 per share (diluted) in the same period last year. Mr. Anthony So, Bonso's Chairman, President and CEO stated: "Our sensor based product sales were 16.5% down from last year; however, the market demand for our telecommunication products and services remained strong and increased by about 33.6%. Like many other businesses in this competitive environment, we have been facing increasing price pressure from rising crude oil, higher metal and raw material price, together with rising labor cost in China. Comparing with the same period last year, the gross profit margin in the second quarter has dropped from 17.8% to 6.9%. We expect the new launched operational restructuring and strategic plan would help bring the profit margin back to normal level (15% to 18%) in the fourth quarter in this fiscal year. Mr. So further stated, "Our focus for the second half of the year is on our core business with existing customers and looking forward to new potential customers in our niche markets of sensor based and telecommunication products with the right product mix. "Our efforts upon the continue progress we have made in strengthening our Balance Sheet put the cash position at the end of the second quarter is $9.9 million, or approximately $1.76 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 BALANCE SHEET (In U.S. Dollars) Sep 30, Mar 31, 2007 2007 (Unaudited) (Unaudited) Assets Current assets Cash and cash equivalents 9,923,622 8,118,018 Trade receivables, net 9,826,842 6,739,567 Inventories, net 14,666,759 14,997,788 Tax recoverable 324,552 2,117 Other receivables, deposits and prepayments 3,233,289 2,678,328 Investment 700,000 700,000 Total current assets 38,675,064 33,235,818 Deferred income tax assets 87,369 87,369 Goodwill 842,821 842,821 Brand name and other intangible assets, net 2,295,531 2,313,434 Property, plant and equipment, net 10,273,067 11,039,173 Total assets 52,173,852 47,518,615 Liabilities and shareholders' equity Current liabilities Bank overdraft 461,708 459,710 Notes payable 5,976,764 3,736,526 Accounts payable 9,281,464 5,354,326 Accrued charges and deposits 1,898,699 2,357,132 Short-term loans 3,998,962 3,576,366 Income tax payable 754,673 814,374 Current portion of long-term debts and capital lease obligations 189,005 95,725 Total current liabilities 22,561,275 16,394,159 Long-term debt and capital lease obligations, net of current maturities 280,070 59,258 Deferred income tax liabilities 13,901 13,901 Total Liabilities 22,855,246 16,467,318 Shareholders' equity Preferred stock par value $0.01 per share -authorized shares -- 10,000,000 -- -- -issued and outstanding shares: September 30, 2007 and March 31, 2007 Common stock par value $0.003 per share - authorized shares -- 23,333,334 -- -- - issued and outstanding shares: September 30, 2007 and March 31, 2007 -- 5,577,639 16,729 16,729 Additional paid-in capital 21,764,788 21,764,788 Treasury stock -1,328,560 -1,328,560 Retained earnings 8,232,109 9,584,181 Accumulated other comprehensive income 633,540 1,014,159 29,318,606 31,051,297 Total liabilities and shareholders' equity 52,173,852 47,518,615 BONSO ELECTRONICS INTERNATIONAL INC. CONSOLIDATED INCOME STATEMENT (In Thousands of U.S. Dollars) Three months ended Six months ended SEP 30 SEP 30 2007 2006 2007 2006 (Unaudited)(Unaudited)(Unaudited)(Unaudited) Net sales 19,505 20,710 35,607 36,831 Cost of sales (18,159) (17,023) (31,184) (29,866) Gross margin 1,346 3,687 4,423 6,965 Selling expenses 578 729 1,176 1,256 Salaries and related costs 1,544 1,474 2,970 2,793 Research and development expenses 161 125 266 236 Administration and general expenses 744 716 1,598 1,464 Amortization of brand name 50 50 100 100 (Loss)Income from operations (1,731) 593 (1,687) 1,116 Interest income 44 75 75 123 Other income 172 40 264 96 Interest expenses (170) (154) (304) (271) Foreign exchange gain(loss) 94 (71) 305 (101) Impairment of Goodwill 0 0 -- -- (Loss)Income before income taxes and minority interest (1,591) 483 (1,347) 963 Income tax expense (2) 0 (3) (22) Net (loss) Income before minority interest (1,593) 483 (1,350) 941 Minority interests -- -- -- -- Net (loss)Income (1,593) 483 (1,350) 941 Earnings per share (in U.S.Dollars per share) Basic -0.285 0.086 -0.242 0.168 Diluted -0.282 0.081 -0.239 0.158 Weighted average shares (Basic) 5,577,639 5,577,639 5,577,639 5,577,639 Weighted average shares (Diluted) 5,646,810 5,945,411 5,646,810 5,945,411 For more information about Bonso, please contact: Albert So Financial Controller Tel: +852-2605-5822 Fax: +852-2691-1724 DATASOURCE: Bonso Electronics International, Inc. CONTACT: Albert So of Bonso, +852-2605-5822, fax +852-2691-1724 Web site: http://www.bonso.com/

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