Bonso Reports Half Year Results
February 17 2017 - 9:20PM
Bonso Electronics International, Inc. (NASDAQ:BNSO) today announced
its unaudited results for the six-month period ended September 30,
2016.
Bonso reported a net income for the six-month
period ended September 30, 2016 of $1.10 million, or $0.21 basic
earnings per share, as compared to a net income of $0.15 million,
or $0.03 basic earnings per share, posted during the six-month
period ended September 30, 2015. Net sales for the six-month
period ended September 30, 2016 decreased 20.8% to $10.2 million
from $12.8 million for the six-month period ended September 30,
2015. Comprehensive income for the six-month period ended September
30, 2016 was $0.42 million as compared to $0.34 million for the
comparable period in the prior year. The increase resulted from the
increased income generated from the operations for the six-month
period ended September 30, 2016.
Mr. Anthony So, Chairman and CEO stated: “We are
pleased that our cost reduction program allowed us to remain
profitable even though our sales decreased compared with the same
period in the previous year.”
Mr. So said further: "A key customer, that
accounted for 59% of net sales for the fiscal year ended March 31,
2016, has advised that they will discontinue manufacturing with us
effective during the quarter ending June 30, 2017. This will impact
negatively our future sales, profitability and cash flow. We intend
to invest in and develop new or upgraded products for our
customers, which we hope will result in additional sales revenue
for the Company. There can be no assurance that our efforts will
result in net sales sufficient to offset the decline in net sales
attributable to the loss of the key customer. In addition,
the Company will make efforts to generate additional rental income
by leasing of some of our production facilities to third
parties.”
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.
The diluted net loss per share was the same as the
basic net loss per share for the six-month periods ended September
30, 2014 and 2015 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.
-- Tables to Follow –
Unaudited Consolidated Balance
Sheets |
(Expressed in United States
Dollars) |
|
|
|
|
September 30, |
|
March 31, |
|
2016 |
|
2016 |
|
$ in thousands |
|
$ in thousands |
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
Cash and cash
equivalents |
3,322 |
|
|
3,547 |
|
Trade receivables,
net |
2,111 |
|
|
913 |
|
Inventories |
724 |
|
|
1,823 |
|
Other receivables,
deposits and prepayments |
1,292 |
|
|
1,180 |
|
Financial instruments
at fair value |
- |
|
|
144 |
|
Total current
assets |
7,449 |
|
|
7,607 |
|
|
|
|
|
|
|
Investment in life
insurance contract |
140 |
|
|
140 |
|
Other receivables -
non-current portion |
- |
|
|
265 |
|
Other intangible
assets |
3,007 |
|
|
3,292 |
|
Property, plant and
equipment, net |
10,975 |
|
|
11,717 |
|
Total
assets |
21,571 |
|
|
23,021 |
|
|
|
|
|
|
|
Liabilities and
stockholders’equity |
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
Notes payable |
698 |
|
|
1,237 |
|
Accounts payable |
1,441 |
|
|
2,501 |
|
Accrued charges and
deposits |
3,333 |
|
|
3,153 |
|
Income tax
liabilities |
317 |
|
|
317 |
|
Short-term bank
loans |
249 |
|
|
506 |
|
Payable to affiliated
party |
- |
|
|
79 |
|
Current portion of
capital lease obligations |
49 |
|
|
49 |
|
Financial instruments
at fair value |
160 |
|
|
160 |
|
Loan from affiliated
party - current portion |
135 |
|
|
135 |
|
Total current
liabilities |
6,382 |
|
|
8,137 |
|
|
|
|
|
|
|
Capital lease
obligations, non-current portion |
80 |
|
|
104 |
|
Loan from affiliated
party - non-current portion |
135 |
|
|
202 |
|
|
|
|
|
|
|
Total liabilities |
6,597 |
|
|
8,443 |
|
Stockholders’
equity |
|
|
|
|
|
Common stock par value
$0.003 per share |
|
|
|
|
|
- authorized shares -
23,333,334 |
|
|
|
|
|
- issued shares: Sep
30, 2016 and Mar 31, 2016 - 5,577,639, |
17 |
|
|
17 |
|
outstanding shares: Sep
30, 2016 - 5,154,431 shares; Mar 31, 2016 – 5,173,431 shares |
|
Additional paid-in
capital |
22,566 |
|
|
22,566 |
|
Treasury stock at cost:
Sep 30, 2016 - 423,208 shares; Mar 31, 2016 - 404,208 shares |
(1,587 |
) |
|
(1,561 |
) |
Accumulated
deficit |
(7,730 |
) |
|
(8,828 |
) |
Accumulated other
comprehensive income |
1,708 |
|
|
2,384 |
|
|
14,974 |
|
|
14,578 |
|
|
|
|
|
|
|
Total liabilities and
stockholders’ equity |
21,571 |
|
|
23,021 |
|
|
|
|
|
|
|
Unaudited Consolidated Statements of Operations
and Comprehensive Loss |
(Expressed in United States
Dollars) |
|
|
|
Six months ended September 30, 2016 |
|
Six months ended September 30, 2015 |
|
$ in thousands |
|
$ in thousands |
|
|
|
|
|
Updated * |
Net sales |
|
10,163 |
|
|
|
12,833 |
|
Cost of sales |
|
(7,006 |
) |
|
|
(9,516 |
) |
Gross profit |
|
3,157 |
|
|
|
3,317 |
|
|
|
|
|
|
|
|
|
Selling expenses |
|
(151 |
) |
|
|
(258 |
) |
Salaries and related
costs |
|
(1,179 |
) |
|
|
(1,191 |
) |
Research and
development expenses |
|
(103 |
) |
|
|
(197 |
) |
Administration and
general expenses |
|
(1,531 |
) |
|
|
(2,138 |
) |
Other
income |
|
821 |
|
|
|
825 |
|
Income from
operations |
|
1,014 |
|
|
|
358 |
|
Interest income |
|
4 |
|
|
|
7 |
|
Interest expenses |
|
(24 |
) |
|
|
(77 |
) |
Foreign exchange
gain / (loss) |
|
150 |
|
|
|
(129 |
) |
Income before income
taxes |
|
1,144 |
|
|
|
159 |
|
Income tax expense |
|
(46 |
) |
|
|
(5 |
) |
Net income |
|
1,098 |
|
|
|
154 |
|
|
|
|
|
|
|
|
|
Other comprehensive
loss, net of tax: |
|
|
|
|
|
|
|
Foreign currency
translation adjustments, net of tax |
|
(676 |
) |
|
|
183 |
|
Comprehensive
income |
|
422 |
|
|
|
337 |
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares outstanding |
|
5,154,454 |
|
|
|
5,246,903 |
|
Diluted weighted
average number of shares outstanding |
|
5,204,981 |
|
|
|
5,246,903 |
|
|
|
|
|
|
|
|
|
Earnings per common
share ( in U.S.Dollars) - basic |
$ |
0.21 |
|
|
$ |
0.03 |
|
Earnings per common
share ( in U.S.Dollars) - assuming dilution |
$ |
0.21 |
|
|
$ |
0.03 |
|
|
|
|
* On July 15, 2015, the Company issued options to
certain directors and non-employee directors of the Company to
purchase an aggregate of 850,000 shares of common stock of the
Company at an exercise price of $1.50. The options for
425,000 shares will expire on March 31, 2020, and options for
425,000 shares will expire on March 31, 2025. The exercise
prices of these options were equal to the fair market value at the
time of grant. There was a one-time compensation expense of
approximately $801,000 due to stock options granted, which was
recorded in our financial statements for the fiscal year ended
March 31, 2016 as filed in our Form 20-F on August 15, 2016.
However, this compensation expense was not recorded in our
consolidated balance sheet and statement of operations for the
six-month period ended September 30, 2015 as mentioned in Item 15
of our Amended Form 20-F filed on November 18, 2016.
Therefore, we are updating the statement of operations for the
six-month period ended September 30, 2015 for the comparison with
the financial statements for the six-month period ended September
30, 2016.
For more information please contact:
Albert So
Chief Financial Officer and Secretary
Tel: 852 2605 5822
Fax: 852 2691 1724
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