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 the months of February, 1999
Bonso Electronics International Inc.
---------------------------------------------
(Translation of Registrant's name into English)
Flat A-D, 8th Floor, Universal Industrial Centre, 23-25 Shan Mei Street,
Fo Tan, Shatin, N.T., 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__
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BONSO ELECTRONICS INTERNATIONAL, INC. REPORTS
THIRD QUARTER FINANCIAL RESULTS
HONG KONG - (BUSINESS WIRE) - February 15, 1999 - Bonso Electronics
International, Inc. (NASDAQ/NMS:BNSOF; BNSWF) today reported results for the
third quarter, ended December 31, 1998.
The Company announced that net sales for the nine month period ended December
31, 1998 were $9.7 million, a decrease of 48% compared to sales of $18.8 million
for the nine month period ended December 31, 1997. For the three month period
ended December 31, 1998, net sales were $2.8 million, a decrease of 66.6%,
compared to sales of $8.3 million for the comparable period in 1997.
Operating income was $373,000 for the current nine month period, a decrease of
73.2% compared to $1,394,000 for the corresponding period last year. For the
three month period ended December 31, 1998, operating income was $111,000, a
decrease of 75.6%, compared to $454,000 for the comparable period in 1997. Net
income for the nine month period ended December 31, 1998 was $112,000, a
decrease of 91.6% compared to $1,326,000 for the corresponding period in 1997.
For the current three month period, net income was $2,000, a decrease of 99.6%
compared to $470,000 for the comparable period last year. Per share earnings
were $0.0369, a decrease of 92.1% compared to earnings per share of $0.466 in
the nine month period ended December 31, 1998. For the three month period ended
December 31, 1998, earnings per share were $0.0007 per share, a decrease of
99.6% compared to $0.165 per share for the comparable period in 1997.
Anthony So, Chairman and CEO of Bonso, stated, "Although this quarter reflects
less than satisfactory performance, our management team couldn't be more
positive about Bonso's future outlook. Following our anticipated decline in
sales due to reduced orders from two major customers, we have been actively
negotiating with many new prospective clients for diversified contract
manufacturing services. New orders from a well known United States scale dealer
has been received and the first shipment is scheduled for mid-March, 1999. Also,
we are close to finalizing contract negotiations with a customer in Germany for
shipment commencing in late Fall. Management expects that this contract, if
finalized, will result in significant sales."
Continuing, So added, "We are optimistic that we will be able to secure
additional new contracts for both our old and new product lines, including our
new glass body scales, kitchen scales and parcel scales in which our new four
load cells technology is incorporated. We understand that our customer base must
be broadly diversified so that we can avoid taking significant hits to revenue
and earnings in the event that a client reduces order flow or terminates our
relationship altogether. Bonso's goal is to be a resource for literally dozens
of major OEM producers who will come to rely on Bonso's state-of-the-art and
cost-efficient manufacturing abilities. Besides, we are introducing
"just-in-time" manufacturing, total quality management and performance
management systems to increase our manufacturing efficiencies and to minimize
production costs. We are confident that our sales will increase from present
levels during the coming fiscal year."
Bonso Electronics designs, develops, manufactures, assembles and markets a
comprehensive line of electronic scales and weighing instruments and electronic
consumer and health care products. The Company manufactures all of its products
in the People's Republic of China. The Company's scales include bathroom,
kitchen, office, jewelry, laboratory, pocket, postal, industrial parcel and
mechanical scales that are used in consumer, commercial and industrial
applications. The Company's electronic consumer and health care products include
joysticks, thermometers and blood pressure monitors. Headquartered in Hong Kong,
Bonso Electronics markets its products to customers primarily in North America
and Europe.
Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995: The statements which are not historical facts contained in this press
release 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.
- - CHARTS TO FOLLOW -
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BONSO ELECTRONICS INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEET
(In Thousands of U.S. Dollars)
Unaudited
December 31 March 31
1998 1998
-------- --------
ASSETS
Current Assets:
Cash and cash equivalents $ 190 $ 448
Restricted cash deposits 914 952
Receivables, deposits and prepayment 947 1,707
Deferred income tax assets - current -- 35
Inventories 4,834 5,967
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TOTAL CURRENT ASSETS $ 6,885 $ 9,109
Deferred income tax assets - non current -- 38
Deposits 279 448
Property, plant & equipment (net) 11,143 11,052
-------- --------
TOTAL ASSETS $ 18,307 $ 20,647
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Bank overdrafts 1,013 601
Notes payable 682 2,260
Accounts payable, accrued charges
and deposits 1,058 2,043
Income taxes payable 22 30
Short term bank loans 410 339
Current portion of long-term debt
and capital lease obligations 309 652
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TOTAL CURRENT LIABILITIES 3,494 5,925
Long term debt and capital lease 82 243
Minority interests -- --
Shareholders' Equity:
Common stock par value $0.003 per share
authorized 23,222,224; shares issued
and outstanding 2,893,562 shares 8 8
Additional paid in capital 8,837 8,725
Promissory note receivable from shareholder (1,350) (1,350)
Common stock subscribed 1,350 1,350
Retained earnings 5,624 5,512
Cumulative translation adjustments 262 234
Shareholders' equity 14,731 14,479
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TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 18,307 20,647
====== ======
<PAGE>
<TABLE>
<CAPTION>
BONSO ELECTRONICS INTERNATIONAL, INC.
CONSOLIDATED INCOME STATEMENT
(In Thousands of U.S. Dollars)
Unaudited
Three months ended Nine months ended
December 31, December 31,
1998 1997 1998 1997
---- ---- ---- ----
<S> <C> <C> <C> <C>
Sales $ 2,777 $ 8,318 $ 9,723 $ 18,789
Cost of Sales (1,837) (6,487) (6,904) (14,164)
Gross Profits 940 1,831 2,819 4,625
Operating Expenses 829 1,377 2,446 3,231
Selling, salaries, research and
development, administrative and
general
Income from Operations 111 454 373 1,394
Other income 22 164 82 327
Foreign exchange gains (losses) (14) (1) 23 5
Interest expenses (117) (147) (366) (400)
Income before income taxes (2) 470 112 1,326
Minority interests 0 0 0 0
Net income 2 470 112 1,326
Per share amounts (in dollars):
Earnings per share
Basic $ 0.0007 $ 0.1652 $ 0.0369 $ 0.4660
Diluted 0.0006 0.1556 0.0320 0.4390
Weighted average shares outstanding 3,034,439 2,845,318 3,034,439 2,845,318
Incremental shares from assumed
exercise of:
Warrants 177,727 -- 177,727 --
Stock Options 284,003 174,947 284,003 174,947
Dilutive potential common shares 461,730 174,947 461,730 174,947
Adjusted weighted average shares 3,496,169 3,020,265 3,496,169 3,020,265
</TABLE>
For more information, please contact:
Continental Capital & Equity Corporation
Investor/Broker Relations: Patrick Shane, [email protected]
Media Relations: Susan Conner, [email protected]
407-682-2001
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SIGNATURES
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: March 10, 1999 By: /s/ Henry F. Schlueter
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Henry F. Schlueter,
Assistant Secretary
