-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AWz0we5DA6EaNzlc3lvcuzuk2smumQLes8IKGFb8mRR9hFv4qJ2vevpw1a2gq6CH Mf5DFboXqoFJmZ1YMDhDQQ== 0001050502-03-000156.txt : 20030214 0001050502-03-000156.hdr.sgml : 20030214 20030214143746 ACCESSION NUMBER: 0001050502-03-000156 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030214 FILED AS OF DATE: 20030214 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BONSO ELECTRONICS INTERNATIONAL INC CENTRAL INDEX KEY: 0000846546 STANDARD INDUSTRIAL CLASSIFICATION: MISC INDUSTRIAL & COMMERCIAL MACHINERY & EQUIPMENT [3590] IRS NUMBER: 000000000 STATE OF INCORPORATION: K3 FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-17601 FILM NUMBER: 03566439 BUSINESS ADDRESS: STREET 1: UNIT 1106-1110, STAR HOUSE, 3 SALISBURY STREET 2: ROAD, TSIMSHATSUI, KOWLOON CITY: HONG KONG STATE: K3 BUSINESS PHONE: 01185226055822 MAIL ADDRESS: STREET 1: UNIT 1106-1110, STAR HOUSE, 3 SALISBURY STREET 2: ROAD, TSIMSHATSUI, KOWLOON CITY: HONG KONG STATE: K3 6-K 1 bonso6k2-10.txt 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For February 14, 2003 BONSO ELECTRONICS INTERNATIONAL INC. --------------------------------------------- (Translation of Registrant's name into English) Unit 1106-1110, 11F., Star House 3 Salisbury Road, Tsimshatsui, Kowloon, Hong Kong -------------------------------------- (Address of principal executive offices) [Indicate by check mark whether the Registrant files or will file annual reports under cover of Form 20-F or Form 40-F.] Form 20-F X Form 40-F ----- ----- [Indicate by check mark whether the Registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.] Yes No X ----- ----- BONSO ELECTRONICS INTERNATIONAL INC. Information for the Quarter Ended December 31, 2002 2 TABLE OF CONTENTS REPORT FOR THE QUARTERLY PERIOD ENDED December 31, 2002 ON FORM 6-K Page ---- Third Quarter FY2003 Shareholders Letter 4 Consolidated Financial Statements 6 Unaudited Consolidated Balance Sheets as of December 31, 2002 and March 31, 2002 6 Unaudited Consolidated Statements of Income and Comprehensive Income for the Three Month and Nine Month Periods Ended December 31, 2002 and December 31, 2001 8 Management Discussion and Analysis of Financial Conditions and Results of Operations 9 3 [BONSO LETTERHEAD] 14 February 2003 Dear Shareholders, The third quarter results were mixed with profits up 15% while sales decreased 6% as compared to the same period last year. Our sensor based scale product sales remained strong but were offset by both reduced telecommunications product sales and reduced sales of Korona branded products in Europe. The third quarter shows a rebound in the telecommunications business over depressed sales in the first half of this year. We remain cautiously optimistic that this improved sales trend in our telecommunications business will continue through the remainder of this fiscal year. The increased profit of 15% was primarily due to improved product gross profit margins which showed a 13.74% improvement. We attribute this improvement to a formal program dedicated to improving manufacturing efficiencies and overall business processes. Net income for the three months ended 31 December 2002 was $489,000 or $0.09 per share on revenues of $13,853,000 compared to $425,000 or $0.08 per share on revenues of $14,790,000 for the third quarter of fiscal 2002. Net income of $1,037,000 or $0.19 per share for the nine months ended was down from the prior year's total of $1,502,000 or $0.27 per share, while revenues fell 16% to $34,581,000. Amid a global downturn, Bonso continues to show improvement in net earnings, and the sales trend from the second quarter to the third quarter is up over 30%. This is primarily due to the recovery in our telecommunications business. Historically, outsourcing has bucked the trend of economic expansion. That is, companies have been more inclined to outsource when they see sales dropping and the efficiencies in their company owned factories drop. As reported by Business Week on 7 September 2002, the downturn in the economy of the U.S. could benefit Asian exporters because the cost squeeze at home for U.S. manufacturers is hastening the outsourcing of their production to Asia. As stated in a Wall Street Journal article on 29 January 2003, most Asian economies are booming. J. P. Morgan projects that China's economic growth this year will be 7.5% and China is benefiting from the migration of manufacturing to China. Looking forward, our business plan is to continue to address the needs of our customers in our selected niche markets of sensor based and wireless products. We have invested heavily in manpower, plant and equipment and have overcome the significant barriers to entry into these markets. We continue to obtain new business from existing customers and are attracting new prospects due to strong customer referrals. 4 Our stock price continues to be depressed as our shares trade at a significant discount to tangible book value and low price/earnings and price/sales ratios. Currently the shares are trading at 0.39 times the net book value of $5.57 per share. Based upon this tangible book value per share ratio, we believe that the current stock price is not reflective of Bonso's strength and value. We believe we continue to benefit customers while investing in our operating and distribution capabilities for the future. We thank you for your patience and support as we continue to strive for consistency in our earning and revenue growth in the future. Best regards, Bonso Electronics International, Inc. /s/ Anthony so - ---------------------------------- Anthony so Chairman, President and Chief Executive Officer U..S. Contact: George O'Leary (949) 760-9611, (949) 760-9607 FAX Hong Kong contact: Cathy Pang (852)2605 5822, (852) 2691 1724 FAX The statements contained in this letter which are not historical facts are forward-looking statements that involve certain risk and uncertainties including, but not limited to, risks associated with the uncertainty of future financial results, additional financial requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the company's filings with the Securities and Exchange Commission. 5
Bonso Electronics International Inc. and Subsidiaries Consolidated Balance Sheet (Expressed in United States Dollars) December 31 March 31 ----------- -------- 2002 2002 ---- ---- (Unaudited) (Audited) $ $ Assets Current assets Cash and cash equivalents 4,903,380 1,878,156 Restricted cash deposits 2,509,348 3,972,542 Trade receivables, net 6,851,530 6,838,576 Inventories 12,015,217 8,861,952 Notes receivable 686,258 686,258 Deferred income tax assets - current 13,013 27,219 Other receivables, deposits and prepayments 1,709,938 822,646 ----------- ----------- Total current assets 28,688,684 23,087,349 ----------- ----------- Deposits -- 16,038 Deferred income tax assets - non current 96,217 84,422 Goodwill 204,217 204,217 Brand name, net 3,552,706 2,797,392 ----------- ----------- Property, plant and equipment 17,156,014 18,261,659 ----------- ----------- -- -- ----------- ----------- Total assets 49,697,838 44,451,077 ----------- ----------- Liabilities and shareholders' equity Current liabilities Notes payable 3,647,178 2,857,533 Accounts payable 6,157,788 4,122,443 Accrued charges and deposits 1,682,449 2,022,472 Income taxes payable 95,409 83,614 Shortterm loans 5,054,912 3,754,477 Current portion of long-term debt and capital lease obligations 256,792 647,501 ----------- ----------- Total current liabilities 16,894,528 13,488,040 ----------- ----------- 6 Longterm debt and capital lease obligations, net of current maturities Commitments and contingencies 474,178 317,009 Redeemable Common Stock Redeemable Common Stock par value $0.003 per share - issued and outstanding shares: December 31, 2002 - 180,726; March 31, 2002 - 180,726 1,445,808 1,445,808 Minority Interests 77,886 -- Shareholders' equity Preferred stock par value $0.01 per share - authorized shares - 10,000,000 - issued and outstanding shares : December 31, 2002 - 0; March 31, 2002 - 0 Common stock par value $0.003 per share -- -- - authorized shares - 23,333,334 -- -- - issued and outstanding shares : December 31, 2002 - 5,529,133; March 31, 2002 - 5,404,133 16,583 16,208 Additional paid-in capital 21,458,377 21,152,502 Deferred consultancy fee (95,355) (381,420) Retained earnings 9,214,051 8,176,958 Accumulated other comprehensive income 235,972 235,972 Common stock held in treasury, at cost (24,190) -- ----------- ----------- 30,805,438 29,200,220 ----------- ----------- Total liabilities and shareholders' equity 49,697,838 44,451,077 =========== =========== 7 BONSO ELECTRONICS INTERNATIONAL INC. CONSOLIDATED INCOME STATEMENT (In Thousands of U.S. Dollars) Unaudited Three months ended Dec. 31 Nine months ended Dec. 31 -------------------------- ------------------------- 2002 2001 2002 2001 ---------- ---------- ---------- ---------- Net sales 13,853 14,790 34,581 41,219 Cost of sales (10,315) (11,678) (25,361) (32,229) ---------- ---------- ---------- ---------- Gross margin 3,538 3,112 9,220 8,990 Selling expenses 564 1,062 1,566 2,380 Salaries and related costs 1,154 737 3,340 2,418 Research and development expenses 105 24 257 158 Administration and general expenses 922 576 2,399 1,792 Amortization of Brand Name 17 -- 131 -- ---------- ---------- ---------- ---------- Income from operations 776 713 1,527 2,242 Interest Income 15 35 45 183 Other income 73 43 349 177 Interest Expenses (172) (187) (487) (682) Foreign exchange gains/(losses) (16) (13) -- (36) Consultancy fee (95) (65) (286) (255) ---------- ---------- ---------- ---------- Income before taxation 581 526 1,148 1,629 Income tax benefit/(expense) (62) (101) (73) (127) ---------- ---------- ---------- ---------- Income after taxation 519 425 1,075 1,502 Minority interests (30) -- (38) -- ---------- ---------- ---------- ---------- Net income 489 425 1,037 1,502 ---------- ---------- ---------- ---------- Earnings per share Basic 0.09 0.08 0.19 0.27 Diluted 0.09 0.08 0.19 0.27 Weighted average shares Outstanding 5,529,133 5,539,815 5,529,133 5,539,815 Incremental shares from assumed Exercise of warrants and Stock options -- -- -- -- Adjusted weighted average shares 5,529,133 5,539,815 5,529,133 5,539,815 8
Management Discussion and Analysis of Financial Conditions and Results of Operations ------------------------------------------------------------------------- This section and other parts of this Form 6-K contain forward-looking statements that involve risks and uncertainties. The Company's actual results may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such differences include, but are not limited to, those discussed in the section entitled "Risk Factors" contained in the Company's Form 20-F that was filed with the Securities and Exchange Commission for the Fiscal Year Ended March 31, 2002. The following discussion should be read in conjunction with the Form 20-F for the fiscal year ended March 31, 2002, and the condensed consolidated financial statements included elsewhere in this Form 6-K. Results of Operations Nine Month Period ended December 31, 2002 compared to the Nine Month period ended December 31, 2001 Net Sales. Our sales decreased 16% from approximately $41,219,000 for the period ended December 31, 2001, to approximately $34,581,000 for the period ended December 31, 2002, primarily as a result of the reduction in contribution from our telecommunications products. Our scales business has dropped slightly from approximately $24,000,000 in Fiscal 2002 to approximately $23,000,000 in Fiscal 2003, while orders for telecommunications products were down 33% from approximately $17,219,000 in Fiscal 2002 to approximately $11,581,000 in Fiscal 2003. Gross Margin. Gross margin rose 5% to 27% for the period ended December 31, 2002, as compared with 22% for the same period in the prior year. The gain is attributed to a decrease in materials and labor costs as a result of the Company's emphasis upon improving manufacturing efficiencies. Selling Expenses. Selling expenses decreased by 34% from approximately $2,380,000 for the period ended December 31, 2001 to approximately $1,566,000 for the period ended December 31, 2002. This decrease was attributable primarily to the downturn in sales of telecommunications products and an 18% drop in sales of scales by Korona. Salaries And Related Costs. Salaries and related costs increased by 38% from approximately $2,418,000 for the period ended December 31, 2001 to approximately $3,340,000 for the period ended December 31, 2002. This increase was primarily due to a 40% increase in Korona's salaries from $702,000 to $981,000 and the inclusion of five months of salaries of $347,000 for Gram Precision, which was acquired by Bonso on August 1, 2002. Research And Development. Research and development expenses increased 63% from approximately $158,000 for the period ended December 31, 2001 to approximately $257,000 for the period ended December 31, 2002 due to increased research and development activities for telecommunications products and new scale models not yet introduced into market. 9 Administration And General Expenses. Administration and general expenses increased by 34% from approximately $1,792,000 for the period ended December 31, 2001 to approximately $2,399,000 for the period ended December 31, 2002. This increase was primarily due to the establishment of a new U.S. office for exploring markets in the U.S., and an increase in professional services rendered relating to the acquisition of Gram Precision and the preparation and review of documents filed with the Securities and Exchange Commission. Amortization Of Brand Names. We amortized approximately $131,000 relating to the brand names acquired upon the acquisitions of Korona and Gram Precision during the period ended December 31, 2002. Brand names are amortized using the straight-line method over the related estimated useful life of 15 years. Income From Operations. As a result of the above changes, income from operations decreased by 32% from approximately $2,242,000 for the period ended December 31, 2001 to $1,532,000 for the period ended December 31, 2002. Interest Income. Interest income amounted to approximately $45,000 for the period ended December 31, 2002, compared to $183,000 in the period ended December 31, 2001. This decrease was mainly due to a general lowering of interest rates for deposits despite a slight increase in cash balances with our banks. Other Income. Other income increased 97% from approximately $177,000 for the period ended December 31, 2001, to approximately $349,000 for the period ended December 31, 2002. The increase was primarily due to an increase in sales of scrap. Interest Expenses. Interest expenses decreased 29% from approximately $682,000 for the period ended December 31, 2001 to approximately $487,000 for the period ended December 31, 2002. This decrease primarily resulted from the decline in sales, because the Company used less of its banking facilities to support sales during the first quarter of this year and general lowering of interest rates. Foreign Exchange Losses/Gains. Foreign exchange significantly improved from a loss from approximately $36,000 for the period ended December 31, 2001 to a loss of only $91 for the period ended December 31, 2002. The improvement was primarily attributable to the increased strength of the Euro against the U.S. Dollar which benefits Korona's sales in Europe. Consultancy Fee. We entered into an agreement with a third party to provide consulting/advisory services relating to our capital structure and fund-raising activities. The period of service is from July 2000 to January 2003. A total consultancy fee of $1,144,260 was capitalized in 2000 and is being amortized over the three year period of the contract. This resulted in a non-cash consultancy fee of approximately $286,000 for the period ended December 31, 2002, relating to warrants issued to the consultant. 10 Net Income. As a result of the above changes, net income decreased from approximately $1,502,000 for the period ended December 31, 2001 to $1,037,000 for the period ended December 31, 2002, a decrease of approximately $465,000, or 31%. Three Month Period ended December 31, 2002 compared to the Three Month period ended December 31, 2001 Net Sales. For the three months ended December 31, 2002, net sales of approximately $13,853,000 represented a decrease of approximately $937,000, or 6%, from the same period in the prior year. The decline was primarily due to the lower sales contribution from Korona for a general downturn of demand for consumer products in Europe, especially in Germany and the reduction in contribution from our telecommunications products. Gross Margin. Gross margin rose to 25.5% for the three months ended December 31, 2002, as compared with 21% for the same period in the prior year. The gain is attributed to a decrease in materials as a result of the Company's emphasis upon improving manufacturing efficiencies. Selling Expenses. Selling expenses decreased by 47% from approximately $1,062,000 for the three months ended December 31, 2001 to approximately $564,000 in the three months ended December 31, 2002. This decrease was attributable primarily to the downturn in sales from Korona and telecommunications products. Salaries And Related Costs. Salaries and related costs increased by 57% from approximately $737,000 for the three months ended December 31, 2001 to approximately $1,154,000 for the three months ended December 31, 2002. This increase was primarily due to a 6% increase in Korona's salaries from $302,000 to $319,000 and the inclusion of salaries of $199,000 for Gram Precision, which was acquired by Bonso on August 1, 2002. Research And Development. Research and development expenses increased 337% from approximately $24,000 for the three months ended December 31, 2001 to approximately $104,000 for the three months ended December 31, 2002 due to increased research and development activities for telecommunications products and new scale models not yet introduced into market. Administration And General Expenses. Administration and general expenses increased by 60% from approximately $576,000 for the three months ended December 31, 2001 to approximately $922,000 for the three months ended December 31, 2002. This increase was primarily due to the establishment of a new U.S. office for exploring markets in the U.S., and an increase in professional services rendered relating to the acquisition of Gram Precision and the preparation and review of documents filed with the Securities and Exchange Commission. Amortization Of Brand Names. Brand names are amortized using the straight-line method over the related estimated useful life of 15 years. We amortized approximately $17,000 relating to the brand names acquired upon the acquisitions of Korona and Gram Precision during the period ended December 31, 2002. 11 Income From Operations. As a result of the above changes, income from operations increased by 9% from approximately $713,000 for the three months ended December 31, 2001 to $776,000 for the three months ended December 31, 2002. Interest Income. Interest income amounted to approximately $15,000 for the three months ended December 31, 2002, compared to $36,000 in the three months ended December 31, 2001. This decrease was mainly due to general lowering of interest rates for deposits despite a slight increase in cash balances with our banks. Other Income. Other income increased 70% from approximately $43,000 for the three months ended December 31, 2001, to approximately $73,000 for the three months ended December 31, 2002. The increase was primarily due to an increase in sales of scrap. Interest Expenses. Interest expenses decreased 8% from approximately $187,000 for the three months ended December 31, 2001 to approximately $172,000 for the three months ended December 31, 2002. This decrease primarily resulted from the general lowering of interest rates. Foreign Exchange Losses/Gains. Foreign exchange losses deepened from approximately $13,000 for the three months ended December 31, 2001 to approximately $16,000 for the three months ended December 31, 2002. The increase was primarily attributable to the increased strength of the Renminbi against the HK Dollar and the increased strength of the Euro against the U.S. Dollar which benefits Korona's sales in Europe. Consultancy Fee. We entered into an agreement with a third party to provide consulting/advisory services relating to our capital structure and fund-raising activities. The period of service is from July 2000 to January 2003. A total consultancy fee of $1,144,260 was capitalized in 2000 and is being amortized over the three year period of the contract. This resulted in a non-cash consultancy fee of approximately $95,000 for the three months ended December 31, 2002, relating to warrants issued to the consultant. Net Income. As a result of the above changes, net income increased from approximately $425,000 for the three month ended December 31, 2001 to $489,000 for the three months ended December 31, 2002, an increase of approximately $64,000, or 15%. Liquidity and Capital Resources We have traditionally relied on borrowings to meet our working capital requirements. These borrowings have been supplemented by internally generated funds and trade credits from suppliers. Management believes the Company has sufficient working capital available for its projected operations. Effective August 1, 2002, we acquired a majority interest in Gram Precision, a privately owned Ontario Corporation and a distributor of digital scales for laboratory, industrial, jewelry and other markets requiring precise measurement and high resolution. 12 We paid $1,000,000 in cash over a 5-year period and 125,000 shares of Bonso's common stock for 51% of the equity interest of Gram Precision, subject to certain provisions for adjustment of the purchase price. Headquartered in Mississauga, Ontario (a Toronto suburb), Gram Precision's products are distributed primarily in the U.S. and Canada, with U.S. distribution taking place from the company's distribution center in Reno, Nevada. Stock Repurchase Program In August 2001, the Company's Board of Directors authorized a program for the Company to repurchase up to $500,000 of its common stock. This repurchase program does not obligate the Company to acquire any specific number of shares or acquire shares over any specified period of time. During the first nine months of fiscal 2003, 12,700 shares were repurchased. Between the inception of the repurchase program and December 31, 2002, the Company repurchased or committed to repurchase a total of 14,700 shares of its common stock at a cost of $29,624. The Company may from time to time repurchase shares of its Common Stock under this program. Legal Proceedings In May of 2001, Bonso acquired KORONA Haushaltswaren GmbH & Co. KG ("Korona") from Augusta Technologie AG ("Augusta"). Part of the purchase price paid to Augusta was the issue of 180,726 shares of Bonso's restricted common stock. The Stock Purchase Agreement gave Augusta the right to have Bonso redeem the common stock if the registration of the stock had not been declared effective by the Securities and Exchange Commission on or before January 31, 2002. Bonso filed a registration statement to register the common stock held by Augusta, which was declared effective by the Securities and Exchange Commission on March 7, 2002. In March 2002, Augusta exercised the repurchase obligation requesting to return the 180,726 shares of common stock to us in exchange for a promissory note of $1,445,808, repayable in nine monthly payments which would have commenced April 1, 2002 and bearing interest at a rate of 8% per annum which would have resulted in an interest cost of approximately $50,000 for the whole period of the promissory note. Management believes that Bonso was not required to accept Augusta's tender of their shares, because Augusta hindered the registration process by refusing to allow Korona's auditors to update and certify Korona's financial statements. Although management believes that it has meritorious defenses to the claims asserted by Augusta and intends to defend these claims vigorously, arbitration is uncertain and Bonso may not prevail in the arbitration proceeding. Exhibit Index The following is a list of Exhibits included as part of this Report on Form 6-K. Exhibit Number Description - -------------- ----------- Exhibit 99.1 Press Release entitled "Bonso Reports Third Quarter Results" 13 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. BONSO ELECTRONICS INTERNATIONAL INC. (Registrant) Date: February 14, 2003 By: /s/ Henry F. Schlueter ----------------- -------------------------------- Henry F. Schlueter Assistant Secretary 14 EX-99.1 3 bonsopr.txt PRESS RELEASE EXHIBIT 99.1 Bonso Q3 F2003 BONSO ELECTRONICS REPORTS MIXED THIRD QUARTER RESULTS HONG KONG, February XX - Bonso Electronics International Inc. (NASDAQ:BNSO) today announced net income of $489,000, or $.09 per share, on revenues of $13,853,000 for the Third fiscal quarter ended December 31, 2002. Earnings increased 15% from $425,000, or $0.08 per share, for the third quarter of fiscal 2002, while revenues were down 6 percent from $14,790,000 in the same 2002 period. For nine months ended December 31,2002 net income was $1,037,000 or $0.19 per share on revenues of $34,581,000. Earnings declined 31% from $1,502,000 or $0.27 per share and revenues were down 16% from $41,219,000 in the same 2002 period. Third quarter revenues reflect a rebound in telecommunications business, which provided Bonso with approximately 33% of its Fiscal Year 2002 sales. Anthony So, Chairman, President and Chief Executive Officer of Bonso said "Our scale business was up again for the quarter but the large increases in orders for wireless products in the third quarter was the main factor in our improved sales trend over last quarter" "We are cautiously optimistic that this improvement in our telecommunications business will continue for the remainder of this fiscal year." Third quarter gross profit margin continued to improve up 4.5% on lower revenues compared to the same period in 2002. Mr. So attributed the increase to a formal program for improving manufacturing efficiencies and overall business processes. 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 and health care products. Bonso products are manufactured in the People's Republic of China on behalf of 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. With the May 2001 acquisition of Korona Haushaltawaren, GmbH, a distributor of household scales in Europe, Bonso is embarking on its first consumer marketing venture in Europe and the U.S. under the Korona brand. Bonso also independently designs and develops electronic products for private label markets. For further information, visit the company's web site at www.bonso.com. FINANCIAL SUMMARY For the Three Months For the Nine months Ended December 31 Ended December 31 (Unaudited) (Unaudited) 2002 2001 2002 2001 Revenues($000) 13853 14790 34581 41219 Gross Profit($000) 3538 3112 9220 8990 Net Income($000) 489 425 1037 1502 Earnings Per Share($) 0.09 0.08 0.19 0.27 Weighted Average Shares Outstanding(000) 5,529 5540 5529 5540 The statements contained in the press release which are not historical facts are forward-looking statements that involve certain risks and uncertainties including, but not limited to, risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the company's filings with the Securities and Exchange Commission. -----END PRIVACY-ENHANCED MESSAGE-----