Bonso Electronics Reports Fiscal Year End Results

Rhea-AI Summary

Bonso Electronics International (NASDAQ: BNSO) reported a net income of $0.40 million, translating to $0.09 basic EPS for the fiscal year ending March 31, 2020. Revenue grew by 31% to $13.1 million, primarily due to sales in pet electronic products. The company emphasized ongoing cost reduction and new product development amid COVID-19 challenges. Bonso has a robust balance sheet, with cash of $9.1 million and positive working capital of $5.7 million. The redevelopment of its Shenzhen factory site is anticipated to begin following regulatory approval.

Positive

• 31% increase in net revenue from $10 million to $13.1 million year-over-year.
• Strong cash position of $9.1 million and positive working capital of $5.7 million.
• Plans for new product development in pet electronics and scales.

Negative

• Impact of COVID-19 and U.S.-China trade tensions on business operations.
• Uncertainties related to the redevelopment process of the Shenzhen factory.

HONG KONG, Aug. 27, 2020 (GLOBE NEWSWIRE) -- Bonso Electronics International, Inc. (NASDAQ: BNSO), a designer and manufacturer of sensor-based products, reported its financial results for the fiscal year ended March 31, 2020.

The Company reported a net income of $0.40 million or $0.09 basic earnings per share (or $0.08 diluted earnings per share) for the fiscal year ended March 31, 2020. The Company has filed its Annual Report on Form 20-F, which includes its audited financial statements for its fiscal year ended March 31, 2020, with the United States Securities and Exchange Commission (“SEC”).  The Company’s Annual Report is available on the SEC's website at http://www.sec.gov/.

Andrew So, the Chief Executive Officer of Bonso, stated, "Net revenue of the Company increased by 31% from $10.0 million for the fiscal year ended March 31, 2019, to $13.1 million for the fiscal year ended March 31, 2020.  Sales from pet electronic products were the main reason for our growth, and we will continue to invest and develop new models of pet electronic products and electronic scales.  We are aware of the impact from the COVID-19 pandemic and the trade tension between the United States and China. As a result, we are focusing our efforts on cost reduction and new product development in order to remain competitive.”

Mr. So also said, “We are moving forward with the redevelopment of our Shenzhen factory site. Our development partner Fangda anticipates that they will complete the approval process for redevelopment in 2020. Following approval, the redevelopment of the Shenzhen factory site will begin.” Mr. So further commented, “Our Company’s balance sheet remains strong. We had total cash and cash equivalents at March 31, 2020 of $9.1 million with positive working capital of $5.7 million and a current ratio of 1.9:1.”

About Bonso Electronics

Bonso Electronics designs, develops, manufactures, assembles, and markets a comprehensive line of electronic scales, weighing instruments and pet electronic 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 development of new products, cost reduction efforts and redevelopment of our Shenzhen factory site 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 So
Chief Financial Officer and Secretary
Tel: 852 2605 5822
Fax: 852 2691 1724
SOURCE Bonso Electronics

FAQ

What were Bonso Electronics' earnings for FY 2020?

Bonso Electronics reported a net income of $0.40 million or $0.09 basic earnings per share for the fiscal year ending March 31, 2020.

How much did Bonso Electronics' revenue increase in FY 2020?

The company's net revenue increased by 31%, from $10 million in FY 2019 to $13.1 million in FY 2020.

What is Bonso Electronics' current financial position?

As of March 31, 2020, Bonso had total cash and cash equivalents of $9.1 million and positive working capital of $5.7 million.

What challenges is Bonso Electronics facing currently?

Bonso is facing challenges from the COVID-19 pandemic and ongoing trade tensions between the U.S. and China.

When is Bonso Electronics planning to redevelop its Shenzhen factory?

Redevelopment of the Shenzhen factory site is expected to begin after receiving necessary approvals in 2020.