-----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, EX4ZU2jgT8RmLcnC21OhZH/VrUueSxrdZbPYyDKsEChrrSK+Rh0ocij5HmvPZJJI HKtRYZ8FWaxuRqo+VDaMRA== 0001050502-07-000435.txt : 20071116 0001050502-07-000435.hdr.sgml : 20071116 20071116164604 ACCESSION NUMBER: 0001050502-07-000435 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20071116 FILED AS OF DATE: 20071116 DATE AS OF CHANGE: 20071116 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BONSO ELECTRONICS INTERNATIONAL INC CENTRAL INDEX KEY: 0000846546 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRONIC COMPONENTS, NEC [3679] 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: 071253716 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 bonso6k11-15.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 November 16, 2007 BONSO ELECTRONICS INTERNATIONAL INC. ------------------ (Translation of Registrant's name into English) Unit 1106-1110, 11/F., 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] TABLE OF CONTENTS REPORT FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2007 ON FORM 6-K Page ---- Consolidated Financial Statements Unaudited Consolidated Balance Sheets as of June 30, 2007 and March 31, 2007 3 Unaudited Consolidated Statements of Income and Comprehensive Income for the Three-Month Periods Ended June 30, 2007 and 2006 4 Management Discussion and Analysis of Financial Conditions and Results of Operations 5 Liquidity and Capital Resources 6 Stock Repurchase Program 6 Section 404 Compliance 6 Signature 7 Exhibits 99.1 Press Release Disclosing First Quarter Results dated November 2, 2007 2
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 =========== =========== 3 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 4
Results of Operations Three Month Period ended June 30, 2007 compared to the Three Month Period ended June 30, 2006 Net Sales. Our sales decreased 0.12% from $16,121,239 for the three month period ended June 30, 2006 to $16,101,978 for the three month period ended June 30, 2007, primarily as a result of sales drop of scales products. Sales of our scales and others business was down of 19.1% from $11,658,747 for the period ended June 30, 2006 to $9,435,834 for the period ended June 30, 2007, and sales for telecommunications products were up 49.4% from $4,462,492 for the three month period ended June 30, 2006 to $6,666,144 for the three month period ended June 30, 2007. Gross Margin. Gross margin as a percentage of revenue declined to 19.1% during the three-month period ended June 30, 2007 as compared to 20.3% during the same period in the prior year. This decline was primarily the result of increased costs of materials and labor. Selling Expenses. Selling expenses increased by 13.6% from $526,841 for the three month period ended June 30, 2006 to $598,269 for the three month period ended June 30, 2007. This increase was attributable primarily to increased transportation costs of our finished goods to customers. As a percentage of revenue selling expenses increased to 3.7% during the period ended June 30, 2007 as compared to 3.3% during the prior year. Salaries And Related Costs. Salaries and related costs increased by 8.1% from $1,319,096 for the three month period ended June 30, 2006 to $1,425,735 for the three month period ended June 30, 2007. The increase was primarily caused by an increase in salaries. Research And Development. Research and development expenses decreased 5.6% from $110,816 for the period ended June 30, 2006 to $104,637 for the three month period ended June 30, 2007 due to decreased research and development activities for telecommunications products and new scale models. Research and Development as a percentage of revenue was 0.7% during the three month periods ended June 30, 2007 and June 30, 2006. Administration And General Expenses. Administration and general expenses increased by 14.2% from $747,799 for the period ended June 30, 2006 to $854,160 for the period ended June 30, 2007. This increase was primarily due to increases in repair and maintenance cost. Amortization Of Brand Names. We amortized approximately $50,000 relating to the brand names acquired upon the acquisitions of Korona and Gram Precision during the three month periods ending June 30, 2007 and June 30, 2006. 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 $478,734 or 91.5% from profit of $523,178 for the three month period ended June 30, 2006 to $44,444 for the three-month period ended June 30, 2007. Interest Income. Interest income decreased $16,875 or 35% from $48,187 for the three month period ended June 30, 2006 to $31,315 for the three month period ended June 30, 2007. This decrease was the result of a decreased cash balance in our interest bearing bank accounts. Other Income. Other income increased $36,340 or 65.1% from $55,821 for the three month period ended June 30, 2006 to $92,161 for the three month period ended June 30, 2007. The increase was primarily due to increased compensation received from vendors for defective raw materials. Interest Expenses. Interest expenses increased $16,535 or 14.1% from $117,324 for the three month period ended June 30, 2006 to $133,859 for the three month period ended June 30, 2007. This increase was primarily due to an increase in interest rates on funds borrowed from the bank. Foreign Exchange Losses/Gains. Foreign exchange gain increased from a loss of $30,294 for the three month period ended June 30, 2006 to a gain of $210,844 for the three month period ended June 30, 2007. The increase was primarily attributable to the increased strength of the Canadian Dollars & RMB against the U.S. Dollar. Net Income. As a result of the above changes, net income decreased from $457,776 for the three month period ended June 30, 2006 to $243,583 for the three month period ended June 30, 2007, an decrease of $214,193, or 46.8%. 5 Liquidity and Capital Resources We have financed our growth and cash needs to date primarily from internally generated funds and bank debt. Our primary uses of cash have been to fund expansions and upgrades of our manufacturing facilities and to fund increases in inventory. As of June 30, 2007 we had $8,779,578 in cash and cash equivalents as compared to $8,118,018 as of March 31, 2007. Working capital at June 30, 2007 was $17,275,721 compared to $16,841,659 at March 31, 2007. We believe that our cash flows from operations, our current cash balance and funds available under our working capital and credit facilities will be sufficient to meet our working capital needs and planned capital expenditures in the foreseeable future. Stock Repurchase Program On September 19, 2007, the Company's Board of Directors authorized a new program (the "New Share Repurchase Program") for the Company to repurchase up to $1,500,000 of its common stock. The New Share Repurchase Program does not obligate the Company to acquire any specific number of shares or acquire shares over any specified period of time. No shares were purchased under the New Share Repurchase Program in the first quarter of fiscal 2008 and the Company may, from time to time, repurchase shares of its Common Stock under this program. The Company had previously authorized a program for the Company to repurchase up to $1,500,000 of its common stock and under this plan 260,717 shares valued at $1,328,560 were purchased under this program. This authorization to repurchase shares under the new plan increases the aggregate amount available for repurchase under the New Share Repurchase Program and the previous program to $1,671,440. Section 404 Compliance On December 15, 2006, the Securities and Exchange Commission ("the SEC") advised that the SEC was extending further the dates that were published on September 29, 2005, to postpone the compliance date for filing internal control reports by companies not designated as accelerated filers. Under this revised compliance schedule, the Company will be required to include an internal control report of management with the annual report on Form 20-F beginning with the fiscal year ending March 31, 2008 (unless otherwise extended by the SEC). Further, the Company will not be required to file the auditor's attestation report on internal control over financial reporting until it files it annual report for the fiscal year ending March 31, 2009 (unless otherwise extended by the SEC). 6 SIGNATURE 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: November 16, 2007 By: /s/ Henry F. Schlueter ----------------------------------- Henry F. Schlueter, Assistant Secretary 7 EX-99.1 2 bonso6k11-15991.txt PRESS RELEASE Exhibit 99.1 Press Release Disclosing First Quarter Results dated November 2, 2007Bonso Electronics Reports Results for the First Quarter Friday November 2, 8:30 am ET TORTOLA, British Virgin Island, Nov. 2 /Xinhua-PRNewswire-FirstCall/ -- Bonso Electronics International, Inc (Nasdaq: BNSO - News) 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. -----END PRIVACY-ENHANCED MESSAGE-----