EX-99.1 2 bonso99-1.txt FINANCIAL RESULTS EXHIBIT 99.1 Bonso Electronics Reports First Half and Second Quarter Results HONG KONG, Nov. 18 - Bonso Electronics International, Inc (Nasdaq: BNSO - News) a designer and manufacturer of sensor based and communications products, today announced financial results for the three and six month periods ended 30 September 2005. The company reported that net sales for the three month period ended 30 September 2005 was $15,962,000 or 17.5% below the same period last year. Net income was $244,000 or $0.04 per share (diluted). Net income was 69% below the same period last year. Net sales for the six month period ended 30 September 2005 was $34,112,000, which was 8.8% below the same period last year. Net income for the six month period ended 30 September was $891,000 or $0.16 per share (diluted), a decrease of 39.8% when compared to the net income in the same period last year. Mr. George O'Leary, President and CEO stated: "As predicted last quarter, sales of our communications products continued to be soft in the second quarter. Sales of our sensor based products also decreased slightly during the second quarter. We believe that the sensor based and communications markets we serve are large and we are actively seeking to secure additional business from existing and new customers." Mr. O'Leary said further: "Throughout the first six months of fiscal 2006, we have been enjoying the benefits of generating positive cash flow from operations. Our cash position at the end of the second quarter is over $10 million ($1.79 per share). We are continuing to invest in expansion of our plant and equipment. We have many opportunities to exploit, and we have the financial resources to implement the initiatives we choose. With no sizable debt and a strong balance sheet, we never stop investing in the future of Bonso. We aggressively fund development of new products and technologies, facilities and capital equipment. Business challenges notwithstanding, we remain confident in the overall strategy we are implementing and we look forward with optimism and confidence to opportunities ahead of us." 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. BONSO ELECTRONICS INTERNATIONAL INC. CONSOLIDATED INCOME STATEMENT (In Thousands of U.S. Dollars) Unaudited Three months ended Six months ended Sept 30 Sept 30 2005 2004 2005 2004 Net sales 15,962 19,356 34,112 37,397 Cost of sales -12,840 -15,799 -27,380 -30,220 Gross margin 3,122 3,557 6,732 7,177 Selling expenses 492 592 1,107 1,291 Salaries and related costs 1,375 1,261 2,743 2,513 Research and development expenses 164 114 272 204 Administration and general expenses 875 919 1,616 1,591 Amortization of Brand Name 50 53 100 106 Income from operations 166 618 894 1,472 Interest Income 31 50 86 93 Other income 172 267 255 307 Interest Expenses -83 -193 -220 -400 Foreign exchange (Loss) / gains -82 -8 -119 -59 Income before income taxes and minority interest 204 734 896 1,413 Income tax expense 40 -13 -5 -23 Net income before minority interest 244 721 891 1,390 Minority interests -- 66 -- 90 Net income 244 787 891 1,480 Earnings per share Diluted 0.04 0.13 0.16 0.25 Adjusted weighted average shares 5,759,135 5,945,411 5,759,135 5,945,411 BONSO ELECTRONICS INTERNATIONAL INC. CONSOLIDATED BALANCE SHEET (In U.S. Dollars) 30-Sep 31-Mar 2005 2005 (Unaudited) (Audited) Assets Current assets Cash and cash equivalents 10,130,362 9,707,588 Restricted cash deposits 5,050 4,848 Trade receivables, net 13,042,651 10,585,968 Inventories, net 14,216,769 11,402,239 Tax recoverable 511,760 486,618 Deferred income tax assets - current 52,057 52,057 Other receivables, deposits and prepayments 1,986,855 1,450,322 Total current assets 39,945,504 33,689,640 Deposits 72,788 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 2,640,528 2,740,530 Property, plant and equipment 13,515,850 14,311,986 Total assets 57,807,845 52,462,756 Liabilities and shareholders' equity Current liabilities Bank Overdraft 430,626 281,085 Notes payable 7,354,257 3,744,726 Accounts payable 7,543,092 6,938,578 Accrued charges and deposits 2,026,326 1,978,222 Short-term loans 5,587,672 4,742,685 Current portion of long-term debt and capital lease obligations 264,892 633,887 Total current liabilities 23,206,865 18,319,183 Long-term debt and capital lease obligations, net of current maturities 375,865 167,735 Deferred income tax 43,994 43,856 Shareholders' equity Preferred stock par value $0.01 per share - authorized shares - 10,000,000 - issued and outstanding shares : March & September-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 September 2005 - 5,577,639 Additional paid-in capital 21,764,788 21,764,788 Retained earnings 11,640,318 11,307,642 Accumulated other comprehensive income 759,286 842,823 34,181,121 33,931,982 Total liabilities and shareholders' equity 57,807,845 52,462,756 The statements contained in this press release which are not historical fact are forward looking statements that involve certain risks and uncertainties including, but not limited to risks associated with the uncertainty of future financial results, seasonality of scales of certain products, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, currency fluctuations, estimates of market growth, the effect of economic conditions and other uncertainties detailed in the company's filings with the Securities and Exchange Commission. For more information about Bonso, please contact: In US - George O'Leary Tel: +1-949-760-9611 Fax: +1-949-760-9607 In Hong Kong - Cathy Pang Tel: +852-2605-5822 Fax: +852-2691-1724 ------------------------------------------------------------------------ Source: Bonso Electronics International, Inc