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 month of August, 2000
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
August 21, 2000
Dear Shareholders:
Bonso Electronics' achievements in the first quarter of fiscal 2001 are
noteworthy for several reasons, including record quarterly sales and earnings,
and steps taken to protect and enhance shareholder value such as stock buyback
plan and the commencement of trading on NASDAQ of our new warrants.
For the three months ended June 30, 2000, the company earned $1,186,000,
equal to $0.21 cents per share, on revenues of $9, I X 1,000. This compares with
net income of $386,000, or $0.12 cents per share, on revenues of $4,340,000 in
the same period last year. Earnings per share in the 2000 period reflect a 72
percent increase in adjusted weighted average shares outstanding due to the
exercise of warrants in January 2000, and options during the final quarter of
the year, which added 2,334,297 additional shares outstanding over the quarter
ended June 30, 1999.
A threefold increase in profits against a doubling of revenues is an
excellent measure for starting a new fiscal year and a new chapter in the
history of Bonso. Approximately one third of revenues in the first quarter were
from wireless communications products that did not exist in our manufacturing
portfolio a year ago. Looking ahead, the two-way radio product line and cordless
telephones now being manufactured by Bonso in large quantities represent an
entry into one of the fastest growing segments of the consumer electronics
industry & telecommunications. Meanwhile the electronics manufacturing services
(EMS) industry increased its revenues 22 percent to $27.4 billion in 1999,
according to a study reported in the March 2000 issue of Circuit Assembly
magazine. This same source stated that the EMS market has grown at an annual
rate of at least 20 percent since 1992, and forecasts a 25 percent growth in
2000.
The gains from contracts to manufacture wireless products have not been at
the expense of our traditional production lines. Shipments of electronic scales
and health care products remain strong. Wireless product manufacturing is
accommodated by factory expansion, charged against last year's income. In a more
recent upgrading of facilities, we relocated our corporate offices in July to a
building in Hong Kong's Kowloon district where many prominent foreign and
domestic businesses make their headquarters. The company purchased the office
space for its corporate offices. The new location creates a more efficient
operating environment for our office staff and improves convenience to visiting
customers.
Also in July, the Board of Directors authorized expenditures of up to $1
million for open market purchases of Bonso's common stock because the Board
believed that shares were undervalued in early July.
Unit 1106 - 1110, Star House, 3 Salisbury Road, Tsimshatsui, Kowloon, Hong Kong
Tel: (852) 2605-5822 FAX: (852) 2691-1724
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BONSO ELECTRONICS INTERNATIONAL INC.
In another noteworthy recent event, Bonso warrants have commenced trading
under the symbol BNSOZ on the NASDAQ national listings. The company issued
2,174,403 common stock purchase warrants on January 19, 2000 as a dividend to
prior warrant holders. Each two warrants are exercisable to purchase one share
of common stock at an exercise price of $17.50 per share. If all warrants are
exercised prior to the December 31, 2001 expiration date, proceeds to the
company will total $19,026,017.50. The issuance of warrants is management's way
of planning for future capital requirements.
Among the many business process improvements that we are addressing this
year is more frequent shareholder communications. We sincerely appreciate your
patience and support during this very exciting time of transition and growth.
Best regards, Bonso Electronics' International, Inc.
Anthony So
Chairman, President and Chief Executive Officer
U.S. contact: George O'Leary (949) 760-9611
Attachments: 1. Balance Sheet 2. Income Statement
The statements contained in this letter 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 financial requirements, development of new
products, government approval processes, the impact of competitive products or
pricing, technological changes, the reflect of economic conditions and other
uncertainties detailed in the companies filings with the Securities and Exchange
Commission.
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<TABLE>
<CAPTION>
BONSO ELECTRONICS INTERNATIONAL INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Expressed in United States Dollars)
2000
June 30 March 31
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(unaudited) (audited)
<S> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents $ 7,470,070 $ 7,959,404
Restricted cash deposits 2,099,685 2,071,952
Trade receivables, net 3,284,560 1,661,050
Inventories, net 5,545,411 6,192,611
Notes receivable 256,060 525,175
Income taxes recoverable -- 112
Deferred income tax assets - current 31,251 24,802
Other receivables, deposits and
Prepayments 171,909 235,851
Total current assets 518,858,949 $ 18,670,957
Deposits 692,815 398,147
Deferred income tax assets -- non current 93,017 101,570
Net property, plant and equipment 16,043,121 14,622,042
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Total assets $ 35,687,899 $ 33,792,760
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Current liabilities:
Bank overdrafts $ -- $ --
Notes payable 1,163,478 819,099
Account payable 3,943,959 3,028,023
Accrued charges and deposits 826,617 882,839
Short-term loans -- 622,229
Current portion of long-term debt &
capital lease obligations 499,171 553,467
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Total Current Liabilities $ 6,433,225 $ 5,905,657
Long term debt and capital lease
Obligations, net of current maturities 765,956 864,798
Shareholders' equity:
Common stock par value $0.003 per share
- authorized shares 23,333,334
issued and outstanding shares 5,569,633 16,639 17,133
Additional paid in capital 21,175,995 22,325,500
Promissory note receivable from Shareholder $ -- (1,430,000)
Retained earnings 7,060,112 5,873,656
Accumulated other comprehensive income 235,972 235,972
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$ 28,488,718 $ 27,022,261
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Total Liabilities & Shareholders' equity $ 35,687,899 $ 33,792,716
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BONSO ELECTRONICS INTERNATIONAL INC
CONSOLIDATED INCOME STATEMENT
(In Thousand of U.S. Dollars)
(unaudited)
Three months ended
June 30
2000 1999
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Sales $ 9,181 $ 4,340
Cost of Sales (6,723) (2,994)
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Gross Profits 2,458 1,346
Operating Expenses
Selling Expense 134 52
Salaries & related cost 590 495
Research & development
Expenses 29 7
General & administration expense 568 364
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Income from operations 1,137 428
Other income 113 30
Foreign exchange (losses)/gains 39 (7)
Interest Expenses (103) (65)
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Net income 1,186 386
Per share amounts (in dollars):
earnings per share
Basic $ 0.21 $ 0.12
Diluted $ 0.21 $ 0.12
Weighted average shares Outstanding 5,569,633 3,119,159
Incremental shares from assumed
Exercise of warrants and Stock options 25,231 141,408
Adjusted weighted average shares 5,594,864 3,260,567
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BONSO ELECTRONICS INTERNATIONAL INC. NEWS RELEASE
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Unit 1106-1110, 11/F., Star House North America Company Contact:
3 Salisbury Road, Tsimshatsui George O'Leary
Kowloon, Hong Kong 1919 Yacht Colinia
Email address : [email protected] Newport Beach, CA 92660 USA
Telephone: (949) 760-9611
Facsimile: (949) 760-9607
BONSO ELECTRONICS PURCHASES OFFICE BUILDING
TO HOUSE CORPORATE HEADQUARTERS STAFF
HONG KONG, August 21, 2000 - Bonso Electronics International Inc. today
announced completion of its corporate headquarters relocation to a newly
purchased office facility closer to the mainstream of Hong Kong's international
trade activity.
The roughly 5,000 square foot office at 3 Salisbury Road, Kowloon, was
purchased for approximately $2 million (US) in cash. "The new location is more
convenient for international customers to reach, and it provides a future
expansion capacity consistent with our expected growth," said Anthony So, Bonso
president and CEO.
Earlier this year, Bonso completed a $6 million expansion to its
manufacturing facilities in the People's Republic of China to accommodate major
production for scales and telecommunications product. Those contracts
contributed to a doubling of revenues and a tripling of net income in the first
fiscal quarter ended June 30, 2000.
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.
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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: August 30, 2000 By: /s/ Henry F. Schlueter
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Henry F. Schlueter, Assistant Secretary
