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 July, 1999
Bonso Electronics International Inc.
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(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. NEWS RELEASE
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Flat A-D, 8/Floor, Universal Industrial Centre North America Company Contact:
23-25, Shan Mei Street George O'Leary
Fo Tan, Shatin, N.T. 1919 Yacht Loinia
Hong Kong Newport Beach, CA 92660 USA
Telephone: (949) 760-9611
Facsimile: (949) 760-9607
BONSO ELECTRONICS INTERNATIONAL INC.
ANNOUNCES FISCAL YEAR END RESULTS
HONG KONG ....July 7, 1999. Bonso Electronics International Inc. (the "Company")
(NASDAQ: BNSO and BNSOW) reports that revenue for the fiscal year ended March
31, 1999, decreased 45% to $13,046K as compared to revenue of $23,716K in the
previous fiscal year. Operating income after charging research and development
expenses in connection with a telephone project of $392K was $244K for the year
ended March 31, 1999, a decrease of 90% compared to $2,354K in operating income
for the year ended March 31, 1998. Net income dropped 99% to $14K or $0.0045
basic earnings per share, for the current reporting period over net income of
$2,275K, or $0.8 basic earnings per share, reported for the fiscal year ended
March 31, 1998..
Mr. Anthony So, Chairman and Chief Executive Officer of the Company, stated
"although we suffered financially in this fiscal year because of reduced orders
from two major customers and the research and development costs incurred for a
telephone project, I am pleased to report that we have successfully negotiated
with several new customers for diversified contract manufacturing services. One
of them is a well known United States laboratory scale producer, and shipments
commenced in late March 1999".
Continuing, Mr. 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, pocket scales, and laboratory scales. We
also recognize that our customer base must be broadly diversified so that we can
avoid reductions to our revenue and earnings, in the event that a major client
reduces or stops doing business with the Company.
Bonso Electronics' primary goal is to become a manufacturing resource for major
OEM producers, who will come to rely on Bonso's state-of-the-art and
cost-efficient manufacturing abilities. In order to facilitate this, the Company
is introducing "just-in-time" manufacturing total quality management and
performance management systems to enhance its manufacturing efficiencies and
minimize production costs. Mr. So said that he is optimistic that these measures
will result in increased revenue and earnings to the Company in the coming year.
Today, Bonso is aggressively pursuing opportunities to enhance value in the
Company. For example, Bonso has developed a unique bathroom scale that offers
significant value advantages to its OEM customers. Further, the Company is in
discussions with a number of significant scale companies that have expressed
interest in this product. Our revolutionary new four load cell design provides
the accuracy of a strain gauge scale at approximately the same cost of the old
fashioned pulse count scale. We are very excited about this opportunity, because
we believe it represents a significant market opportunity.
Bonso Electronics designs, develops, manufactures and sells a comprehensive line
of electronic scales and weighing instruments and electronic consumer and health
products. The Company manufactures all of its products in the People's Republic
of China. The Company's electronic scales include bathroom, kitchen, office,
jewelry, laboratory, pocket, postal, industrial and parcel scales that are used
in consumer, commercial and industrial applications. The Company's electronic
consumer and health products include electronic thermometers and blood pressure
meters.
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.
###
FINANCIAL HIGHLIGHTS--TO FOLLOW
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BONSO ELECTRONICS INTERNATIONAL INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Expressed in United States Dollars)
audited
March 31
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1998 1999
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$ $
ASSETS
Current Assets:
Cash and cash equivalents 448,454 271,447
Restricted cash deposits 952,267 1,011,688
Trade receivables, net 964,958 362,236
Inventories, net 5,966,700 4,697,928
Notes receivable 340,518 690,449
Deferred income tax assets - current 35,088 31,251
Other receivables, deposits and prepayments 400,924 243,231
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Total current assets 9,108,909 7,308,230
Deposits 447,735 --
Deferred income tax assets - note current 38,430 81,223
Property, plant & equipment
Leasehold land and buildings 7,259,414 8,997,073
Construction in progress 785,364 --
Plant and machinery 3,385,846 3,495,632
Molds 2,108,967 2,112,608
Furniture, fixtures and equipment 2,122,805 2,661,718
Motor vehicles 306,946 306,979
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15,969,342 17,574,010
Less accumulated depreciation and amortization (4,917,853) (6,303,179)
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Net property, plant and equipment 11,051,489 11,270,831
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Total assets 20,646,563 18,660,284
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank overdrafts 600,721 643,278
Notes payable 2,260,384 581,349
Accounts payable 1,560,954 1,135,910
Accrued charges and deposits 482,222 516,458
Income taxes payable 30,000 11,667
Short-term loans 338,632 720,129
Current portion of long-term debt and
capital lease obligations 652,041 383,409
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Total Current Liabilities 5,924,954 3,992,200
Long-term debt and capital lease obligations, net
of current maturities 242,889 42,397
Commitments and contingencies
Shareholders' equity
Common stock, par value $0.003 per share,
- authorized shares - 23,333,334,
- issued and outstanding shares - 2,919,159 8,485 8,753
Additional paid-in capital 8,724,503 8,935,705
Promissory note receivable from shareholder (1,350,000) (1,430,000)
Common stock subscribed 1,350,000 1,350,000
Retained earnings 5,512,204 5,525,958
Accumulated other comprehensive income 233,528 235,271
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14,478,720 14,625,687
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 20,646,563 18,660,284
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<TABLE>
<CAPTION>
BONSO ELECTRONICS INTERNATIONAL, INC.
CONSOLIDATED INCOME STATEMENT
(In Thousands of U.S. Dollars)
audited
Year Ended March 31,
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1997 1998 1999
---- ---- ----
<S> <C> <C> <C>
Sales $ 16,989 $ 23,716 $ 13,046
Cost of Sales (12,096) (17,072) (8,812)
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Gross Profits 4,893 6,644 4,234
Operating Expenses:
Selling expenses 433 420 197
Salaries and related costs 1,973 1,897 1,626
Research and development expenses 122 159 566
Administration and general expenses 1,609 1,814 1,601
Net gain on liquidation of a joint
venture company (160)
----------- ----------- -----------
Income from Operations 916 2,354 244
Interest Income 64 74 64
Other income 102 243 53
Foreign exchange (losses)/gains (136) 35 38
Interest expenses (532) (504) (446)
Less: Interest capitalized 61 46 25
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Income/(loss) before income taxes 475 2,248 (22)
Income Tax Benefit 71 27 36
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Net income 546 2,275 14
Other Comprehensive Income, net of tax
Foreign currency translation adjustments 163 43 2
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Comprehensive income 709 2,318 16
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Per share amounts (in dollars):
Earnings per share
Basic $ 0.1934 $ 0.8039 $ 0.0045
Diluted 0.1921 0.7257 0.0037
Weighted average shares outstanding 2,825,949 2,829,448 3,079,219
</TABLE>
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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: July 19, 1999 By: /s/ Henry F. Schlueter
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Henry F. Schlueter,
Assistant Secretary
