Bonso Electronics Reports Surge in Revenues; First Half Earnings Lag Under Margin Pressure.Business Editors, High-Tech high-tech also hi-tech adj. Informal Of, relating to, or resembling high technology. high-tech Adjective same as hi-tech Adj. 1. Writers HONG n. 1. A mercantile establishment or factory for foreign trade in China, as formerly at Canton; a succession of offices connected by a common passage and used for business or storage. KONG--(BUSINESS WIRE)--Nov. 9, 2001 Bonso Electronics International Inc. (Nasdaq:BNSO) today announced the highest quarterly sales in its history, but a higher cost of sales on new business resulted in a lower profit during the first six months of fiscal 2002. Quarterly revenues jumped 116 percent to $13,848,000 over last year's $6,421,000. Income from operations for the quarter ended September September: see month. 30, 2001, was $672,000 a decrease of 27 percent compared to income from operations of $925,000 for the comparable period in the prior fiscal year. Revenues for the six months ended September 30, 2001 increased 69 percent to $26,429,000 over $15,602,000 from the comparable period in the prior year. Income from operations for the six months ended September 30, 2001 was $1,529,000 a decrease of 26 percent compared to income from operations of $2,062,000 for the comparable period in the prior fiscal year. Net income for the six months ended September 30, 2001 was $1,075,000, or $0.19 per share, compared to $2,011,000, or $0.36 per share, for the comparable period in the prior fiscal year. For the three months ended September 30, 2001, net income of $408,000, or $0.07 per share, compares to $825,000, or $0.15 per share, for the comparable period in the prior fiscal year. The decline in net income of 47 percent from the first six months of fiscal 2001 reflects the consolidation of Korona The word Korona is a generic term of some Slavic languages and of the Hungarian language for a crown. As such it might refer to a variety of meanings:
prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Anthony So, Bonso Chairman, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and President. Revenue gains came both from internal growth and growth associated with the acquisition of Korona, a distributor of household scales in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). acquired earlier this year. "Korona's cost of sales are
considerably higher, and we are addressing that situation as rapidly as
possible," Mr. So said. "In addition, lower margins in the
electronics contract manufacturing business are part of the ripple
effect ripple effect Epidemiology See Signal event. from a static consumer demand in the U.S. and Europe."
About Bonso Electronics Headquartered in Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. , Bonso Electronics designs, develops, manufactures, assembles and markets a comprehensive line of telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. products, electronic scales and weighing weigh 1 v. weighed, weigh·ing, weighs v.tr. 1. To determine the weight of by or as if by using a scale or balance. 2. instruments and health care products. Bonso products are manufactured in the People's Republic People's Republic n. A political organization founded and controlled by a national Communist party. of China on behalf of customers primarily located in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Europe. Company services include product design and prototyping (1) Creating a demo of a new system. Prototyping is essential for clarifying information requirements. The design of a system (functional specs) must be finalized before the system can be built. , production tooling, procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. of components, total quality management, and just-in-time just-in-time - dynamic translation delivery. With the May 2001 acquisition of Korona Haushaltswaren, 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. The statements contained in the press release which are not historical facts are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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. Financial Information follows:
BONSO ELECTRONICS INTERNATIONAL INC.
CONSOLIDATED INCOME STATEMENT
(In Thousands of U.S. Dollars)
Unaudited
Three months Six months
ended Sept 30 ended Sept 30
------------- -------------
2001 2000 2001 2000
---- ---- ---- ----
Net sales 13,848 6,421 26,429 15,602
Cost of sales (10,657) (4,243) (20,551) (10,966)
-------- ------- -------- --------
Gross margin 3,191 2,178 5,878 4,636
Selling expenses 905 79 1,318 213
Salaries and related
costs 873 580 1,681 1,170
Research and development
expenses 69 49 134 78
Administration and general
expenses 672 545 1,216 1,113
------- ------- ------- -------
Income from operations 672 925 1,529 2,062
Other income 139 191 282 304
Foreign exchange gains/
(losses) (10) (25) (23) 14
Interest Expenses (296) (119) (496) (222)
Consultancy fee (95) - (191) -
------- ------- ------- -------
Income before
income taxes 410 972 1,101 2,158
Income tax
benefit/(expense) (2) (147) (26) (147)
------- ------- ------- -------
Net income 408 825 1,075 2,011
======= ======= ======= =======
Earnings per share
Basic 0.07 0.15 0.19 0.36
Diluted 0.07 0.15 0.19 0.36
Weighted average
shares Outstanding 5,539,815 5,527,623 5,539,815 5,527,623
Incremental shares
from assumed
Exercise of warrants
and Stock options - 68,228 - 68,228
Adjusted weighted
average shares 5,539,815 5,595,851 5,539,815 5,595,851
BONSO ELECTRONICS INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(In U.S. Dollars)
September 30 March 31
------------ --------
2001 2001
---- ----
(unaudited) (audited)
Assets
Current assets
Cash and cash equivalents 4,075,587 5,322,397
Restricted cash deposits 4,009,920 2,873,898
Trade receivables, net 8,736,724 3,518,943
Inventories, net 8,165,410 5,310,889
Notes receivable 73,775 1,086,949
Income taxes recoverable - -
Deferred income tax
assets - current 10,190 10,190
Other receivables,
deposits and prepayments 805,394 619,858
---------- ----------
Total current assets 25,877,000 18,743,124
---------- ----------
Deposits - 70,511
Deferred income tax assets -
non current 87,245 87,245
Property, plant and equipment 19,381,195 18,595,790
Goodwill 2,649,385 -
---------- ----------
Total assets 47,994,825 37,496,670
========== ==========
Liabilities and shareholders' equity
Current liabilities
Notes payable 6,336,907 3,234,897
Accounts payable 3,840,966 3,435,626
Accrued charges and deposits 2,628,075 1,029,967
Income taxes payable (86,878) 95,694
Short-term loans 3,782,354 1,086,949
Current portion of long-term
debt and capital lease obligations 631,349 537,029
---------- ---------
Total current liabilities 17,132,773 9,420,162
---------- ---------
Long-term debt and capital
lease obligations, net of
current maturities 367,956 403,890
Shareholders' equity
Common stock par value $0.003 per share
- authorized shares - 23,333,334 - -
- issued and outstanding shares:
2000-5,712,610;2001-5,496,133;
30 September 2001-5,601,859 16,801 16,484
Additional paid-in capital 22,974,871 21,854,160
Capital Reserves - -
Deferred consultancy fee (572,130) (762,840)
Retained earnings 8,003,122 6,927,842
Accumulated other comprehensive income 168,932 235,972
Common stock held in treasury, at cost (97,500) (599,000)
-------- ---------
30,494,096 27,672,618
---------- ----------
Total liabilities and shareholders' equity 47,994,825 37,496,670
========== ==========
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