Bonso Electronics International Inc. (NASDAQ:BNSO) released a preview of earnings for its shareholders. The earnings were unaudited but give a solid glimpse into the company’s financial status. The company reported a net loss for the six-month period ending 9/30/14 of $10K. Net sales for the company came in at $14.5 million which was a 5% decline from the previous same six-month period in 2013. The company also stated that it will eliminate low margin products from its sales line-up in order to make an attempt to become profitable in 2015. These products were sapping too much labor costs and also the need to keep large stocks of raw materials on hand raising inventory levels. Through discussions with their largest customers the company came to this conclusion.
Higher Profit, Lower Revenues
The company believes this will cause revenues to decrease but the overall effect caused by the labor and material savings will increase profitability. They also feel that their Shenzuan factory will bring in more rental income helping to offset the revenue losses from the scale back of products.
Bonso Electronics International Inc. (NASDAQ:BNSO) develops electronic scales and weighting instruments. They also have a line of health care products along with electronic pet products.
Refocusing On Profits
Bonso Electronics International Inc. (NASDAQ:BNSO)’s losses were not insurmountable and according to them, were the result of having too many offerings that did not contribute enough to their margins. They offer a full range of scales that include those for home and personal use along with weighing devices for businesses. They also have an extensive line of electronic pet devices including bark controllers. They sell scrap materials also. The company is based in Hong Kong and was formerly known as Golden Virtue Limited.
The stock is trading sideways between $1.30 and $1.60. Volume has been steady but not enough to move the issue out of this range. It has solid support at $1.28 which should prevent any sudden and dramatic decreases but it needs stronger volume to move up.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of USmarketsDaily.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: