News Column

Bonso Electronics Reports Year End Results

August 26, 2014

HONG KONG, Aug. 26, 2014 (GLOBE NEWSWIRE) -- Bonso Electronics International, Inc. (Nasdaq:BNSO), a designer and manufacturer of sensor based products, reported its financial results for the fiscal year ended March 31, 2014.

The company reported a net loss of $0.22 million or $0.04 basic and diluted loss per share, and a comprehensive income of $0.04 million for the fiscal year ended March 31, 2014. Net sales for the fiscal year ended March 31, 2014 increased 3.0% to $31.31 million from $30.39 million for the fiscal year ended March 31, 2013.

Anthony So, the Chief Executive Officer of Bonso, stated, "We are pleased that revenue increased over the prior year and with the reduction in our net loss from $0.76 million for the fiscal year ended March 31, 2013, to $0.22 million for the fiscal year ended March 31, 2014. We were able to decrease our loss in spite of the fact that our operations in China continue to be affected by inflation, especially increased labor costs. The minimum wage for workers has doubled in the last five years as the result of government required increases in the minimum wage. Our strategy to improve our financial performance is to eliminate or reduce sales of our low profit margin products and to focus our skill and resources in higher margin products including high precision industrial electronic scales."

Mr. So said that, "We completed moving all of our production processes to our new factory in February 2014 in order to reduce our labor costs. Also, the old factory is rented out to generate extra rental income to the Company. We believe that our strategy and these moves will enable us to return to profitability in the long run."

About Bonso Electronics

Bonso Electronics designs, develops, manufactures, assembles and markets a comprehensive line of electronic scales, weighing instruments, health care products and pet electronics 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 as ``should,'' ``intends,'' ``is subject to,'' ``expects,'' ``will,'' ``continue,'' ``anticipate,'' ``estimated,'' ``projected,'' ``may,'' `` I or we believe,'' ``future prospects,'' "our strategy" or similar expressions. Forward-looking statements made in this press release, which relate to the reduction of losses and a positive impact upon our future operations as a result of the sale of assets involve known and unknown risks and uncertainties that may cause the actual results to differ materially from those expected and stated in this announcement. We undertake no obligation to update "forward-looking" statements.

-- Tables to Follow

Consolidated Balance Sheets
(Expressed in United States Dollars)
March 31
2013

$ in thousands
2014

$ in thousands
Assets
Current assets
Cash and cash equivalents 1,140 116
Fixed deposits maturing over three months 1,014 1,049
Trade receivables, net 2,759 2,480
Other receivables, deposits and prepayments 1,615 1,782
Receivable from affiliated party -- 166
Inventories 5,460 7,545
Financial instruments at fair value 54 --
Income tax recoverable 1,740 1,739
Total current assets 13,782 14,877
Investment in life insurance contract 127 131
Deposits - non current assets 288 293
Property, plant and equipment
Buildings 13,704 14,339
Construction-in-progress 2,616 3,183
Plant and machinery 21,565 11,276
Furniture, fixtures and equipment 3,521 1,170
Motor vehicles 444 589
41,850 30,557
Less: accumulated depreciation and impairment (33,551) (18,105)
Property, plant and equipment, net 8,299 12,452
Intangible assets, net 4,590 4,387
Financial instruments at fair value - non current portion 37 --
Total assets 27,123 32,140
Liabilities and stockholders' equity
Current liabilities
Bank overdrafts - secured 180 630
Notes payable - secured 2,276 2,527
Accounts payable 7,793 10,413
Accrued charges and deposits 2,329 2,597
Income tax liabilities 7 7
Payable to affiliated party -- 10
Short-term bank loans - secured 1,357 2,320
Financial instruments at fair value -- 119
Current portion of capital lease obligations -- 23
Total current liabilities 13,942 18,646
Financial instruments at fair value - non current portion -- 208
Capital lease obligations - non current portion -- 69
Income tax liabilities 2,595 2,595
Commitments and contingent liabilities
Stockholders' equity
Common stock par value $0.003 per share
- authorized shares - 23,333,334
- issued shares: 2013 and 2014 - 5,577,639, 17 17
- outstanding shares: 2013 and 2014 - 5,246,903
Additional paid-in capital 21,765 21,765
Treasury stock at cost: 2013 and 2014 - 330,736 shares (1,462) (1,462)
Accumulated deficit (12,588) (12,809)
Accumulated other comprehensive income 2,854 3,111
10,586 10,622
Total liabilities and stockholders' equity 27,123 32,140
Consolidated Statements of Operations and Comprehensive (Loss) / Income
(Expressed in United States Dollars)
Year ended March 31,
2013 2014
$ in thousands $ in thousands
Net sales 30,386 31,305
Cost of sales (25,263) (28,631)
Gross profit 5,123 2,674
Selling expenses (268) (389)
Salaries and related costs (2,627) (2,983)
Research and development expenses (396) (366)
Administration and general expenses (2,402) (2,964)
Other income 165 728
Gain from liquidation of subsidiary -- --
Gain on disposal of property plant and equipment 2 3,595
(Loss) / profit from operations (403) 295
Interest income 7 64
Interest expense (68) (136)
Foreign exchange loss (261) (444)
Loss before income taxes (725) (221)
Income tax expense (29) --
Net loss (754) (221)
Other comprehensive income, net of tax:
Foreign currency translation adjustments, net of tax 62 257
Comprehensive (loss) / income (692) 36
Weighted average number of shares outstanding -- 5,246,903 5,246,903
basic and diluted
Net loss per share - basic and diluted (0.14) (0.04)


The diluted net loss per share was the same as the basic net loss per share for the fiscal year ended Mar 31, 2013 and 2014 as all potential ordinary shares including the stock options and warrants are anti-dilutive and are therefore excluded from the computation of diluted net loss per share.

CONTACT: For more information please contact: Albert So Chief Financial Officer and Secretary Tel: 852 2605 5822 Fax: 852 2691 1724

Source: Bonso Electronics International, Inc.


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