Bonso Electronics Reports Compliance With NASDAQ Continued Listing Standards and Year End Results

HONG KONG, Nov. 21, 2008 (GLOBE NEWSWIRE) -- Bonso Electronics International, Inc. (Nasdaq:BNSO) today reported that it had been notified by the NASDAQ Stock Market (the "NASDAQ") that Bonso had demonstrated compliance with the NASDAQ's requirements for continued listing as set forth in Marketplace Rule 4320(e)(12), because the Company had filed its Annual Report on Form 20-F for the fiscal year ended March 31, 2008, with the United States Securities & Exchange Commission ("SEC"). NASDAQ confirmed that the listing review is now closed and that Bonso's common stock will remain listed on The NASDAQ Global Market.

Bonso reported a net loss for the fiscal year ended March 31, 2008 of $8,550,000 or ($1.53) basic and diluted earnings per share, as compared to a net loss of $1,371,000 or ($0.25) basic and diluted earnings per share posted during the same period in the prior year. Net sales for the year ended March 31, 2008 decreased 5.7% to $62,687,000 from net sales of $66,491,000 for the year ended March 31, 2007.

Mr. Anthony So, President and CEO stated: "During the fiscal year ended March 31, 2008, we recognized impairment of $2.4 million for the goodwill and brand name related to our subsidiaries in Germany and Canada, because of the subsidiaries' continued poor operating performance. Also, we wrote off $2.5 million for obsolete inventory. While these factors negatively impacted our reported earnings, they did not have any cash impact to the company." Mr. So said that Bonso experienced higher materials costs during the year, and an increase in administrative and general expenses as well, which contributed to the net loss. In addition, we recorded a provision of approximately $2,164,000 in relation to uncertain tax positions as of April 1, 2007.

Mr. So said further: "We are taking steps to eliminate losing businesses from the Group, and to minimize costs where possible. We maintain a strong cash position, which was $10.2 million (or $1.83 per share) as of March 31, 2008, an increase of 26% as compared to $8.1 million as of March 31, 2007. Being aware of the global economic downturn in 2008, and its unpredictable impact and duration, we intend to focus our efforts on cost reduction and product development, in an effort to return to profitability and meet the requirements of our customers."

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

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 other 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.

                      CONSOLIDATED BALANCE SHEET
                           (In U.S. Dollars)

                                          31-Mar            31-Mar
                                           2008              2007


 Current assets
  Cash and cash equivalents             10,195,362         8,118,018
  Trade receivables, net                 5,264,074         6,739,567
  Inventories, net                      11,391,318        14,997,788
  Tax recoverable                            2,117             2,117
  Investment                                    --           700,000
  Other receivables, deposits and
   prepayments                           4,144,676         2,678,328

  Total current assets                  30,997,547        33,235,818

 Deferred income tax assets                191,618            87,369
 Goodwill                                       --           842,821
 Brand name and other intangible
  assets, net                              502,494         2,313,434
 Other non-current assets                  155,125                --
 Property, plant and equipment, net      9,939,064        11,039,173

  Total assets                          41,785,848        47,518,615

 Liabilities and shareholders' equity

 Current liabilities
  Bank overdraft                           811,354           459,710
  Notes payable                          3,863,465         3,736,526
  Accounts payable                       5,985,403         5,354,326
  Accrued charges and deposits           3,359,557         2,357,132
  Income tax payable                         6,888           814,374
  Short-term loans                       3,894,159         3,576,366
  Current portion of long-term debts
   and capital lease obligations           176,930            95,725

  Total current liabilities             18,097,756        16,394,159

 Capital lease obligations, net of
  current maturities                       183,761            59,258
 Income tax liabilities                  2,595,135                --
 Deferred income tax liabilities             4,460            13,901
 Total Liabilities                      20,881,112        16,467,318

 Shareholders' equity

 Preferred stock par value $0.01 per
 -authorized shares - 10,000,000                --                --
 -issued and outstanding shares :
   March 2007 & 2006-nil
   Common stock par value $0.003 per share
    - authorized shares - 23,333,334            --                --
 -issued and outstanding shares :
   March 2007 & 2006 - 5,577,639            16,729            16,729
 Additional paid-in capital             21,764,788        21,764,788
 Retained earnings                      (1,129,819)        9,584,181
 Common stock held at treasury
  (260,717 shares at par)               (1,328,560)       (1,328,560)
 Accumulated other comprehensive
  income                                 1,581,598         1,014,159
                                        20,904,736        31,051,297

 Total liabilities and shareholders'
  equity                                41,785,848        47,518,615

                          BONSO ELECTRONICS
                          INTERNATIONAL INC.
                    (In Thousands of U.S. Dollars)

                                          Twelve months ended
                                                MAR 31
                                           2008         2007

 Net sales                                  62,687       66,491
 Cost of sales                             (57,683)     (53,946)

 Gross margin                                5,004       12,545

 Selling expenses                            2,480        2,477
 Salaries and related costs                  5,781        5,438
 Research and development expenses             883          983
 Administration and general expenses         4,638        3,004
 Amortization of brand name                    200          200
 Loss from water damage                         --          701
 Impairment of goodwill                        843           --
 Impairment of brand name                    1,597           --
 Impairment of share Investment                200           --

 (Loss) from operations                    (11,618)        (258)
 Interest income                               203          313
 Other income                                3,440          302
 Interest expenses                            (693)        (626)
 Foreign exchange loss                        (216)        (184)

 (Loss)/Income before income
  taxes and minority interest               (8,884)        (453)
 Income tax expense                            334         (918)

 Net(loss)/Income before
  minority interest                         (8,550)      (1,371)
 Minority interests                             --           --

 Net (loss)/Income                          (8,550)      (1,371)

 Earnings per share (in
  U.S.Dollars per share)
  Basic                                      (1.53)       (0.25)
  Diluted                                    (1.53)       (0.25)

 Weighted average shares (Basic)         5,577,639    5,577,639
 Weighted average shares (Diluted)       5,577,639    5,577,639

The diluted net loss per share was the same as the basic net loss per share for the year ended Mar 31, 2008 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:  Bonso Electronics International, Inc.
          Albert So, Financial Controller
          Fax: +852-2691-1724
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