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 September 1, 2005
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BONSO ELECTRONICS INTERNATIONAL INC.
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(Translation of Registrant's name into English)
Unit 1106-1110, 11/F., Star House 3 Salisbury Road,
Tsimshatsui Kowloon, Hong Kong
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(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 Mixed Results for the First Quarter
HONG KONG, Aug. 22 /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 2005.
The company reported sales of $18,150,000 and net earnings of $647,000 or 12
cents per share (diluted) for the three months period ended 30 June 2005. This
represents an increase of 0.6 % in sales and a decrease of 6.6 % in net income
as compared to sales of $18,041,000 and net income of $693,000 or 12 cents per
share (diluted) posted during the same period last year.
Sensor based product sales surpassed last year's volume but telecommunication
product sales were down approximately 2% from last year's first quarter. We
anticipate that telecommunications product sales will continue to be soft in the
short-term future.
Our gross profit margin reduced 0.3 percent based on increases in material and
labor costs and operation expense levels increased approximately 4 percent
primarily as a result of expansion of the branded sales operations in North
America. The result was that net income dropped approximately $46,000 from last
year's first quarter.
George O'Leary, President and Chief Executive Officer said "Going forward, our
primary focus will be on doing more for our existing customers and to show
greater initiative in proposing solutions to new potential customers in our
niche markets of sensor based and telecommunication products. We have developed
several new sensor based products that are being well received by new potential
OEM customers and have also expanded our branded product offerings in both North
America and Europe "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 was $9.7 million, or approximately $1.74 per share".
On July 18, we announced a $0.10 per common share cash dividend. Based on the
closing price on July 15 2005 ($5.67 per share), the forthcoming dividend would
represent an annual yield of approximately 1.8 %. The Board of Directors feels
this is an appropriate reward to loyal shareholders. I am pleased with our cash
position and we believe our financial resources continue to permit the payment
of dividends while meeting our other financial requirements.
Mr. O'Leary further stated "As our first quarter results have demonstrated, we
are committed to keeping one eye on the future and one eye on the bottom line;
as we continue to pursue planned profitable growth".
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 and health care products. Bonso
products are manufactured in the People's Republic of China on behalf of
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 www.bonso.com.
The statements contained in the press release which are not historical facts are
forward-looking statements 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.
For more information please contact:
In US
George O'Leary
Tel: +1-949-760-9611
Fax: +1-949-760-9607
In Hong Kong
Cathy Pang
Tel: +852-2605-5822
Fax: +852-2691-1724
BONSO ELECTRONICS INTERNATIONAL INC.
CONSOLIDATED INCOME STATEMENT
(In Thousands of U.S. Dollars)
Unaudited
Three months ended June 30
2005 2004
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Net sales 18,150 18,041
Cost of sales (14,540) (14,421)
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Gross margin 3,610 3,620
Selling expenses 615 699
Salaries and related costs 1,368 1,252
Research and development expenses 108 90
Administration and general expenses 740 673
Amortization of brand name and
goodwill 50 53
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Income from operations 728 854
Interest Income 55 43
Interest Expenses (137) (207)
Foreign exchange gains/(losses) (37) (51)
Other income 83 40
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Income before income taxes & Minority
Interest 692 679
Income tax benefit/(expense) (45) (10)
Net Income before Minority Interest 647 669
Minority Interest -- 24
Net income 647 693
Earnings per share
Diluted 0.12 0.12
Adjusted weighted average shares 5,577,639 5,825,287
BONSO ELECTRONICS INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(In U.S. Dollars)
Unaudited
June 30 March 31
2005 2005
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Assets
Current assets
Cash and cash equivalents 9,731,619 9,707,588
Restricted cash deposits 4,785 4,848
Trade receivables, net 12,732,914 10,585,968
Inventories, net 14,214,064 11,402,239
Tax recoverable 578,941 486,618
Deferred income tax assets - current 52,057 52,057
Other receivables, deposits and prepayments 1,230,610 1,450,322
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Total current assets 38,544,990 33,689,640
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Deposits 72,789 72,789
Long term investment 500,000 500,000
Deferred income tax assets - non current 46,797 46,849
Goodwill 1,100,962 1,100,962
Brand name, net 2,147,392 2,197,392
Other intangible, net 539,751 543,138
Net property plant & equipment 13,539,269 14,311,986
Total assets 56,491,950 52,462,756
Liabilities and shareholders' equity
Current liabilities
Bank overdraft 236,619 281,085
Notes payable 3,898,921 3,744,726
Accounts payable 10,712,557 6,938,578
Accrued charges and deposits 1,972,042 1,978,222
Short-term loans 4,643,619 4,742,685
Current portion of long-term debt
and capital lease obligations 425,748 425,748
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Total current liabilities 21,889,506 18,111,044
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Long-term debt and capital lease
obligations net of current maturities 139,323 375,874
Deferred income tax 43,967 43,856
Shareholders' equity
Common stock par value $0.003 per share
- authorized shares - 23,333,334
- issued and outstanding shares:
2005-5,577,639;
30 June 2005-5,577,639 16,729 16,729
Additional paid-in capital 21,764,788 21,764,788
Retained earnings 11,954,391 11,307,642
Accumulated other comprehensive income 683,246 842,823
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34,419,154 33,931,982
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Total liabilities and shareholders' equity 56,491,950 52,462,756
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.
By: /s/ George O'Leary
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George O'Leary, President and
Chief Executive Officer