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 July 12, 2005
-------------
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
----- -----
BONSO ELECTRONICS REPORTS EARNINGS UP 679% FOR THE QUARTER
AND 48% FOR THE YEAR
Hong Kong, July 11, 2005/ - - Bonso Electronics International, Inc (NASDAQ:
BNSO) today reported net income of $1,270,000 or $0.21 per share (diluted) on
net sales of $13,861,000 for the fourth fiscal quarter ended March 31, 2005.
This represented an increase of 679% in net income and decrease of 17% in net
sales as compared to $163,000 or $0.03 per share (diluted) on net sales of
$16,624,000 posted during the same period last year.
Net income for the fiscal year ended March 31, 2005 increased 48% to $3,350,000
or $0.55 per share (diluted) as compared to $2,268,000 or $0.37 per share
(diluted) posted during the same period last year.
Net sales for the year ended March 31, 2005 decreased 7.2% to $69,602,000 from
net sales of $74,964,000 for the year ended March 31, 2004.
Mr. George O'Leary, President and CEO stated: "We accomplished these results,
over the last year, at a time when the price of raw materials and skilled labor
costs were increasing. We were able to offset some of these material cost
increases by initiating design and manufacturing process changes. Further
contributing to the increase in net income was a reduction in administration and
general expenses, specifically legal and professional fees as a result of the
resolution of all pending legal proceedings."
"While our sensor based product sales increased approximately 2% over last year,
it was not enough to offset the reduction in sales of approximately 25% in our
telecommunications products business. We are cautiously optimistic that sales
will continue to grow in the sensor based product area, as they have all year,
as a result of increases from our current customers, new customers and the
apparent good reaction to new product introductions we have made. We believe
that telecommunications product sales will continue to be soft in the near term
due to seasonality associated with telecommunications products, but we
anticipate resurgence as our OEM customers release new offerings".
Mr. George O'Leary further said: "Throughout fiscal 2005, we have been enjoying
the benefits of generating positive cash flow from operations. Our cash position
at the end of the year is $9.7 million ($1.74 per share). We are continuing to
invest in expansion of our plant and equipment to support future growth. We
believe that we have many opportunities to exploit, and believe we will have the
financial resources to implement the initiatives we choose. With minimum
long-term debt and a strong balance sheet, we intend to continue to invest in
the future of Bonso through the development of new products and technologies,
facilities and capital equipment. We believe we have growth potential in both
the sensor based and telecommunications markets we serve. Business challenges
notwithstanding, we remain confident in the overall strategy and growth plan we
are implementing."
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.
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.
BONSO ELECTRONICS
INTERNATIONAL INC.
CONSOLIDATED INCOME
STATEMENT
(In Thousands of U.S.
Dollars)
Three months Twelve months
ended March 31 ended March 31
---------------- ----------------
2005 2004 2005 2004
---- ---- ---- ----
Unaudited Unaudited Unaudited Audited
Net sales 13,861 16,624 69,602 74,964
Cost of sales -8,562 -10,996 -53,138 -57,481
--------- --------- --------- ---------
Gross margin 5,299 5,628 16,464 17,483
Selling expenses 603 1,005 2,595 3,122
Salaries and related costs 1,400 1,087 5,216 5,150
Research and development 378 400 710 740
expenses
Administration and general 1,611 2,658 4,079 5,439
expenses
Amortization of Brand Name 50 51 200 200
--------- --------- --------- ---------
Income from operations 1,257 427 3,664 2,832
Interest expense and interest income 64 109 -336 -443
Other income 78 -45 372 225
Foreign exchange (loss)/gain -39 -30 -98 15
--------- --------- --------- ---------
Income before income taxes and 1,360 461 3,602 2,629
minority interest
Income tax benefit -51 -384 -266 -402
--------- --------- --------- ---------
Net income before minority interest 1,309 77 3,336 2,227
Minority interests -39 86 14 41
--------- --------- --------- ---------
Net income 1,270 163 3,350 2,268
========= ========= ========= =========
Earnings per share
Basic 0.23 0.03 0.59 0.40
Diluted 0.21 0.03 0.55 0.37
Weighted average shares 6,054,303 6,060,264 6,054,303 6,060,264
Outstanding
BONSO ELECTRONICS INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(In U.S. Dollars)
March 31 March 31
---------- ----------
2005 2004
---- ----
(Unaudited) (Audited)
Assets
Current assets
Cash and cash equivalents 9,707,588 10,815,279
Restricted cash deposits 4,848 4,337
Trade receivables, net 10,735,968 10,389,769
Inventories 11,402,239 10,881,932
Tax recoverable 486,618 58,464
Deferred income tax assets - current 52,057 52,057
Other receivables, deposits and prepayments 1,428,784 888,658
---------- ----------
Total current assets 33,818,102 33,090,496
---------- ----------
Deposits 72,789 617,056
Long term investment 500,000 0
Deferred income tax assets - non current 46,849 15,178
Goodwill 1,100,962 1,100,962
Brand name, net 2,197,392 2,397,392
Other intangible,net 543,138 0
Property, plant and equipment, net 14,311,986 16,377,361
Total assets 52,591,218 53,598,445
========== ==========
Liabilities and shareholders' equity
Current liabilities
Bank overdraft 281,085 156,429
Notes payable 3,465,591 3,244,194
Accounts payable 7,196,175 8,280,039
Income taxes payable -- 279,485
Accrued charges and deposits 1,978,222 2,951,797
Short-term loans 4,742,685 4,599,652
Current portion of long-term debt and capital lease obligations 425,747 678,397
---------- ----------
Total current liabilities 18,089,505 20,189,993
---------- ----------
Long-term debt and capital lease obligations, net of current maturities 525,875 1,158,081
Deferred income taxes 43,856 39,718
Minority Interests -- 14,203
Redeemable Common Stock
Redeemable Common Stock par value $0.003 per share -- 1,445,808
- issued and outstanding shares: 2004-180,726 ; 2005 - 0
Shareholders' equity
Preferred stock par value $0.01 per share
- authorized shares - 10,000,000
- issued and outstanding shares : 2004 - 0; 2005-0
Common stock par value $0.003 per share 16,729 16,579
- authorized shares - 23,333,334
- issued and outstanding shares: 2004-5,527,639; 2005-5,577,639
Additional paid-in capital 21,764,788 21,665,801
Retained earnings 11,307,642 8,515,793
Accumulated other comprehensive income 842,823 552,469
---------- ----------
33,931,982 30,750,642
---------- ----------
Total liabilities and shareholders' equity 52,591,218 53,598,445
---------- ----------
For more information about Bonso, please contact
In US - George OLeary,
Tel: 1-949-760-9611
Fax: 1-949-760-9607
In Hong Kong - Cathy Pang
Tel: +852-2605-5822
Fax: +852-2691-1724
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: July 12, 2005 By: /s/ George O'Leary
----------------------------------
George O'Leary, President
and Chief Executive Officer