Bonso Reports Half Year Results
March 29 2019 - 8:35PM
Bonso Electronics International, Inc. (NASDAQ: BNSO) today
announced its unaudited results for the six-month period ended
September 30, 2018.
Bonso reported a net loss for the six-month
period ended September 30, 2018 of $0.09 million, or $0.02 basic
loss per share, as compared to net income of $0.69 million, or
$0.14 basic earnings per share, posted during the six-month period
ended September 30, 2017. Net revenue for the six-month period
ended September 30, 2018, decreased 21.9% to $5.6 million from $7.2
million for the six-month period ended September 30, 2017. The
decreased net income resulted principally from the decline in
revenue related to the Company’s scales and electronics products
and the corresponding decline in income from the operations for the
six-month period ended September 30, 2018.
Mr. Andrew So, President and CEO stated: “We are
continuing our efforts to increase sales in the scales and
electronic products segment of our business, and we are optimistic
that these efforts will result in increased sales in the next
fiscal year. Over-all this segment of our business has declined,
and we expect that trend to continue for the fiscal year ended
March 31, 2019. We are developing new electronic scales and pet
electronic products for our customers and anticipate that we will
start selling these products in our next fiscal year.”
Further, Mr. Andrew So stated: “The Company has
leased out its Shenzhen factory to a third party since August 2013
and under its terms, the lease was to end on July 31, 2019.
However, in December 2018, the local environmental protection
bureau ordered the tenant to cease production of its primary
products as a result of the imposition of higher pollution
standards resulting from the conversion two years ago of a nearby
industrial factory to residential buildings. The tenant has
relocated to another factory and has paid rent to the Company
through January 31, 2019. The tenant will not pay any further rent
to Bonso, since the rental agreement was terminated. The loss of
rental income for this six-month period will negatively impact both
our revenues and cash flow.”
Mr. So said further: “We expect that the Company
will obtain all the governmental approvals for the redevelopment of
the Shenzhen factory in 2019. The reconstruction is expected
to take three to four years and we believe the redeveloped property
will generate substantial future rental revenue for the
Company.”
About Bonso Electronics
Bonso Electronics designs, develops,
manufactures, assembles and markets a comprehensive line of
electronic scales, weighing instruments 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.
Bonso rents factory space and equipment to third parties and is
also continuing the process to obtain the necessary approvals to
redevelop the land upon which its Shenzhen factory is located. 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
termination of the lease for the Shenzhen factory 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.
For more information please
contact:
Albert SoChief Financial Officer and SecretaryTel: 852 2605
5822Fax: 852 2691 1724SOURCE Bonso Electronics
|
-- Tables to
Follow -- |
|
|
Unaudited
Consolidated Balance Sheets |
(Expressed
in United States Dollars) |
|
|
March 31, |
|
September 30, |
|
2018 |
|
2018 |
|
$ in thousands |
|
$ in thousands |
|
(Audited) |
|
(Unaudited) |
Assets |
|
|
|
|
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
8,751 |
|
8,400 |
Trade receivables, net |
794 |
|
1,216 |
Other receivables, deposits and prepayments |
745 |
|
474 |
Inventories, net |
1,012 |
|
681 |
Income tax recoverable |
5 |
|
0 |
Financial instruments at fair value |
78 |
|
0 |
|
|
|
|
Total current assets |
11,385 |
|
10,771 |
|
|
|
|
Investment in life settlement contracts |
149 |
|
151 |
Other intangible assets |
2,787 |
|
2,410 |
Property, plant and equipment, net |
10,434 |
|
9,442 |
|
|
|
|
Total assets |
24,755 |
|
22,774 |
|
|
|
|
Liabilities and stockholders’
equity |
|
|
|
|
|
|
|
Current liabilities |
|
|
|
Notes payable - secured |
99 |
|
130 |
Bank loans - secured |
0 |
|
552 |
Accounts payable |
924 |
|
582 |
Accrued charges and deposits |
3,178 |
|
3,164 |
Payable to affiliated party |
73 |
|
0 |
Current portion of capital lease obligations |
28 |
|
28 |
Loan from affiliated party - current portion |
67 |
|
0 |
|
|
|
|
Total current liabilities |
4,369 |
|
4,456 |
|
|
|
|
|
|
|
|
Capital lease obligations, net of current
portion |
32 |
|
17 |
Long-term deposit received |
738 |
|
738 |
Long-term loan |
2,527 |
|
2,248 |
|
|
|
|
Total liabilities |
7,666 |
|
7,459 |
|
|
|
|
Stockholders’ equity |
|
|
|
Common stock par value $0.003 per
share |
|
|
|
- authorized shares -
23,333,334 |
|
|
|
- issued shares: Mar 31, 2018 -
5,543,639; Sep 30, 2018 - 5,543,639 |
17 |
|
17 |
outstanding shares: Mar 31, 2018 - 4,795,622; Sep
30, 2018 - 4,712,300 |
|
|
|
Additional paid-in capital |
22,474 |
|
22,474 |
Treasury stock at cost: Mar 31,
2018 - 748,017; Sep 30, 2018 - 831,339 |
-2,409 |
|
-2,671 |
Accumulated deficit |
-6,029 |
|
-6,117 |
Accumulated other comprehensive
income |
3,036 |
|
1,612 |
|
|
|
|
|
17,089 |
|
15,315 |
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
24,755 |
|
22,774 |
|
|
|
|
Unaudited Consolidated Statements of Operations and
Comprehensive Income |
(Expressed in United States Dollars) |
|
|
Six months ended
September 30, 2017 |
|
Six months ended
September 30, 2018 |
|
$ in
thousands |
|
$ in
thousands |
|
(unaudited) |
|
(unaudited) |
|
|
|
|
Net revenue |
7,210 |
|
5,631 |
Cost of revenue |
-4,481 |
|
-3,602 |
|
|
|
|
Gross profit |
2,729 |
|
2,029 |
|
|
|
|
Selling, general and
administrative expenses |
-2,062 |
|
-2,099 |
Other income, net |
148 |
|
16 |
|
|
|
|
Income / (loss) from
operations |
815 |
|
-54 |
Non-operating (expenses) /
income, net |
-127 |
|
-34 |
|
|
|
|
Income / (loss) before
income taxes |
688 |
|
-88 |
Income tax expense |
0 |
|
0 |
|
|
|
|
Net income / (loss) |
688 |
|
-88 |
|
|
|
|
Other comprehensive loss,
net of tax: |
|
|
|
Foreign currency
translation adjustments, net of tax |
455 |
|
-1,424 |
|
|
|
|
Comprehensive income |
1,143 |
|
-1,512 |
|
|
|
|
Earnings / (loss) per
share |
|
|
|
|
|
|
|
Weighted average number of
shares outstanding |
4,967,713 |
|
4,715,384 |
Diluted weighted average
number of shares outstanding |
5,300,353 |
|
4,715,384 |
|
|
|
|
Earnings per common share
(in U.S.Dollars) |
0.14 |
|
-0.02 |
Earnings per common share
(in U.S.Dollars) - assuming dilution |
0.13 |
|
-0.02 |
|
|
|
|
Certain amounts in the statement of operations
for the six-month period ended September 30, 2017 have been
reclassified to conform to the presentation for the six-month
period ended September 30, 2018.
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