EX-99.1 2 bonso6k3302006exh991.txt THIRD QUARTER RESULTS Exhibit 99.1 BONSO ELECTRONICS REPORTS THIRD QUARTER FINANCIAL RESULTS Hong Kong, March 10, 2006/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 2005. For the third quarter ended 31 December 2005, Bonso's sales were approximately $16.1 million, or 12.1% below the same quarter in 2004. This resulted in a net loss of approximately $76,000 or $0.01 per share (diluted) as compared to net income of approximately $600,000 or $0.10 per share (diluted) posted for the same period last year. Sales for the nine-month period ended 31 December was approximately $50.2 million, a decrease of 10.0% compared to sales of approximately $55.7 million in the comparable 2004 period. Net income for the nine-month period ended 31 December 2005 was $815,000 or $0.14 per share (diluted), which is 61% below the net income of $2,080 or $0.35 reported for the same period last year. Mr. George OLeary, President and CEO stated: "The third quarter results are primarily a combination of two factors: reduced sales of both of our products, and increased material and labor costs in China which have negatively impacted the gross profit margin." "One of Bonso's major strengths has always been our ability to reduce product cost as a result of a formalized program of product redesign and process improvements. We are proud of our past achievements in `Value Engineering' our products and processes to reduce cost and improve margins. We intend to continue our ongoing efforts in this activity." Mr. O'Leary said further: "Our cash position at the end of the third quarter is $8.9 million ($1.53 per share). With no sizable long term debt and a strong balance sheet, we continue to invest in the future of Bonso. We aggressively fund development of new products and technologies, facilities and capital equipment. We believe we have great upside potential in both the sensor based and telecommunications markets we serve. Business challenges notwithstanding, we remain confident in the overall strategy 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. --------------------- Attachments: 1. Balance Sheet 2. Income Statement 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. For more information about Bonso, please contact In US - George OLeary, Tel: 1-949-760-9611 Fax: 1-949-760-9607 In Hong Kong - Cathy Pang Tel: +852-2605-5822 Fax: +852-2691-1724
BONSO ELECTRONICS INTERNATIONAL INC. CONSOLIDATED BALANCE SHEET (In U.S. Dollars) 31-Dec 31-Mar 2005 2005 ---- ---- (Unaudited) (Audited) Assets Current assets Cash and cash equivalents 8,914,048 9,707,588 Restricted cash deposits 5,030 4,848 Trade receivables, net 7,130,351 10,585,968 Inventories, net 12,518,409 11,402,239 Tax recoverable 64,117 486,618 Deferred income tax assets - current 52,057 52,057 Other receivables, deposits and prepayments 2,071,835 1,450,322 Total current assets 30,755,847 33,689,640 ---------- ---------- Deposits 72,789 72,789 Long term investment 500,000 500,000 Deferred income tax assets - non current 32,213 46,849 Goodwill 1,100,962 1,100,962 Brand name and other intangible assets, net 2,580,366 2,740,530 Property, plant and equipment 13,462,556 14,311,986 Total assets 48,504,733 52,462,756 ---------- ---------- Liabilities and shareholders' equity Current liabilities Bank Overdraft 446,007 281,085 Notes payable 4,504,459 3,744,726 Accounts payable 3,788,345 6,938,578 Accrued charges and deposits 2,181,553 1,978,222 Short-term loans 3,026,990 4,742,685 Current portion of long-term debt and capital lease 153,012 633,887 obligations Total current liabilities 14,100,366 18,319,183 ---------- ---------- Long-term debt and capital lease obligations, net of 367,427 167,735 current maturities Deferred income tax 44,053 43,856 Shareholders' equity Preferred stock par value $0.01 per share - authorized shares - 10,000,000 - issued and outstanding shares : March & December-0 -- -- Common stock par value $0.003 per share - authorized shares - 23,333,334 - issued and outstanding shares : March 2005 - 5,577,639 16,729 16,729 December 2005 - 5,577,639 Additional paid-in capital 21,764,788 21,764,788 Retained earnings 11,564,516 11,307,642 Accumulated other comprehensive income 646,854 842,823 ---------- ---------- 33,992,887 33,931,982 ---------- ---------- Total liabilities and shareholders' equity 48,504,733 52,462,756 ========== ========== BONSO ELECTRONICS INTERNATIONAL INC. CONSOLIDATED INCOME STATEMENT (In Thousands of U.S. Dollars) Unaudited Three months ended Dec. 31 Nine months ended Dec 31 -------------------------- ------------------------ 2005 2004 2005 2004 ---- ---- ---- ---- A B A B Net sales 16,123 18,344 50,235 55,741 Cost of sales (13,169) (14,356) (40,549) (44,576) ---------- ---------- ---------- ---------- Gross margin 2,954 3,988 9,686 11,165 Selling expenses 517 701 1,624 1,992 Salaries and related costs 1,505 1,303 4,248 3,816 Research and development 109 128 381 332 expenses Administration and general 664 877 2,280 2,468 expenses Amortization of Brand Name 50 44 150 150 ---------- ---------- ---------- ---------- Income from operations 109 935 1,003 2,407 Interest Income 74 75 160 168 Other income (82) (13) 173 294 Interest Expenses (150) (168) (370) (568) Foreign exchange gains \(Loss) 3 -- (116) (59) ---------- ---------- ---------- ---------- Income/(Loss) before income (46) 829 850 2,242 taxes and minority interest Income tax expense -30 -192 -35 -215 ---------- ---------- ---------- ---------- Net income/(Loss) before 2,027 minority interest (76) 637 815 Minority interests -- 37 -- 53 Net income/(Loss) (76) 600 815 2,080 ========== ========== ========== ========== Earnings/(Loss) per share (0.01) 0.10 0.14 0.35 Diluted Adjusted weighted average 5,843,949 5,863,956 5,843,949 5,863,956 shares