FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For:
October 29, 2001;
October 08, 2001;
October 01, 2001
NAM TAI ELECTRONICS, INC.
(Registrant's name in English)
15th Floor, China Merchants Tower, Shun Tak Centre
168-200 Connaught Road Central, Hong Kong
NEWS RELEASE
NAM TAI ELECTRONICS, INC.
REPRESENTED BY: PAN PACIFIC I.R. LTD.
SUITE 1790 - 999 WEST HASTINGS STREET
VANCOUVER, B.C. CANADA V6C 2W2
TEL: (604) 669-7800 FAX: (604) 669-7816
TOLL FREE TEL & FAX: 1-800-661-8831
E-MAIL: investor@namtai.com
WEB SITE: www.namtai.com
CONTACT: LORNE WALDMAN
NAM TAI ELECTRONICS, INC.
Q3 Sales Up 4%, EBITDA Per Share $0.64 vs. $0.68
VANCOUVER, CANADA October 29, 2001 -- Nam Tai Electronics, Inc. ("Nam Tai" or
the "Company") (NASDAQ/NM Symbol: NTAI and NTAIW; CBOE Symbol: QNA) announced
unaudited results for the third quarter ended September 30, 2001.
Net sales for the third quarter of 2001 was $59.6 million, an increase of 4%
compared to net sales of $57.2 million for the third quarter of 2000. Operating
income for the third quarter of 2001 was $3.2 million (gain of $0.31 per share)
a decrease of 9.1% compared to operating income of $3.6 million ($0.39 per
share) for the third quarter of 2000. Net income for the third quarter of 2001
was $3.7 million down 12% compared to net income of $4.2 million in the third
quarter of 2000. Basic and diluted earnings per share for the third quarter of
2001 were $0.36 and $0.36 compared to earnings per share of $0.47 and $0.46 in
the third quarter of 2000.
Net sales for the nine months ended September 30, 2001 increased by 9.5% to
$166.9 million from $152.4 million for the first nine months of 2000. Operating
loss for the first nine months of 2001 was $0.8 million (loss of $0.08 per
share) compared to operating income of $8.7 million ($0.94 per share) for the
first nine months of 2000. Net income for the first nine months in 2001 was $0.4
million. This compares to net income of $22.4 million for the first nine months
of 2000, including a $12.1 million gain from the sale of a non-core asset. Basic
and diluted earning per share for the first nine months of 2001 were $0.04 and
$0.04 compared to earnings per share of $2.53 and $2.45 for the first nine
months of 2000.
In spite of the current worldwide economy slowdown, the Company is pleased that
in the third quarter it returned to growth and profitability. Results of the
Company's realignment plans announced in the second quarter are very encouraging
with positive effects. Costs are beginning to reduce and we expect to achieve a
13th consecutive year of profitability in 2001, but it will be difficult for the
Company to give guidance for 2002 in view of a lack of market visibility,
especially after the September 11th WTC attack.
The cash net income for the third quarter of 2001 was $4.2 million ($0.40 per
share) compared to cash net income of $4.3 million ($0.46 per share) for the
third quarter of 2000. EBITDA for the third quarter of 2001 was $6.6 million
($0.64 per share) compared to EBITDA of $6.3 million ($0.68 per share) for the
third quarter of 2000. The Company continues to maintain a strong financial
position ending the third quarter of 2001 with $3.82 of cash per share and
approximately $15.55 of net book value per share, based on 10,486,940 shares
outstanding compared with 8,984,723 shares outstanding as at September 30, 2000.
The Company, as at September 30, 2001, had a cash to current liabilities ratio
of 0.91, a current ratio of 2.61, a total assets to total liabilities ratio of
4.72 and $40.1million of cash.
Page 1 of 8
With the Company's strong financial position, and positive operating cash flow,
it will continue with internal expansion plans. The internal expansion plans
include a new 138,000 square foot factory building that is proceeding smoothly.
In addition, the Company has commenced a $15 million investment plan for a new
STN LCD Panel production line, and $0.1 million for bringing in the COF (Chip on
Film) technology in expectation of increased orders for both new and existing
products from new and existing customers. Installation and test of machinery is
expected by end of 2001. The Company is also pursuing merger and acquisition
opportunities to help augment its internal growth.
Summary of September 30, 2001 Financial Results
Excluding one-time charges and amortisation of goodwill
(In Thousands of US Dollars except share data)
Three months ended Nine months ended
September 30 September 30
2001 2000 2001 2000
--------------------------- -------------- -------------- -------------- --------------
Net sales 59,551 57,249 166,920 152,381
Gross profit (1) 9,118 8,982 24,023 23,432
Operating income (1,2) 3,225 3,549 6,515 9,031
Net income (1-3) 3,714 4,219 8,170 10,681
EPS diluted 0.36 0.46 0.79 1.17
Cash net income (1-4) 4,170 4,267 9,540 10,826
Cash EPS diluted 0.40 0.46 0.92 1.19
EBITDA (1-4) 6,619 6,271 17,554 16,818
EBITDA per share diluted 0.64 0.68 1.70 1.84
--------------------------- -------------- -------------- --- -------------- --------------
1) Excludes $5.5 million in inventory write-offs and provisions for slow moving
raw materials and $0.3 million for severance payment for the nine months ended
September 30, 2001. 2) Excludes stock option compensation expense of $0.8
million and realignment charges (including additional provisions for severance
payments) of $0.7 million for the nine months ended September 30, 2001. 3)
Excludes provision for impairment in value of non-core assets of $0.5 million
for the nine months ended September 30, 2001, and a $12.1 million gain on the
sale of non-core assets in the first quarter of 2000. 4) Excludes amortisation
of goodwill of $0.5 million and $1.4 million for the three months and nine
months ended September 30, 2001.
Third Quarter Results Analyst Conference Call
The Company will hold a conference call on Monday, October 29, 2001 at 10:00
a.m. Eastern Time for analysts to discuss the third quarter results with
management. Shareholders, investors and other interested individuals are invited
to listen to the live conference call over the internet by clicking
http://www.videonewswire.com/event.asp?id=1486 or over the phone by dialing
(612) 332-0820 just prior to its start time. Callers will be asked to register
with the conference call operator.
Page 2 of 8
Dividends
On October 21, 2001 the Company paid a quarterly dividend of $0.10 per share to
shareholders of record at the close of business on September 30, 2001. The
record date for the fourth quarter dividend of $0.10 per share is December 31,
2001 and the payment date is January 21, 2002.
It is the general policy of Nam Tai to determine the actual annual amount of
future dividends based upon the Company's profitability during the preceding
year. There can be no assurance that any dividend will be declared in 2002 or if
declared the amount of such dividend.
Repurchase Program
On October 1, 2001 the Company announced a stock repurchase program to buy-back
up to an aggregate of two million common shares in the open market from time to
time at prevailing market prices in accordance with SEC Rule 10b-18. As at
October 26, 2001, the Company did not repurchase any of its common shares in the
open market, in this connection, the Company decided to extend the stock
re-purchase program for another six months to the end of June 2002.
Nam Tai Electronics, Inc. is an electronics design and manufacturing service
provider to some of the world's leading original equipment manufacturers. Nam
Tai manufactures telecommunication products, palm-sized PCs, personal digital
assistants, linguistic products, calculators and various components including
LCD modules for cellular phones, lithium ion rechargeable battery packs,
transformers and LCD panels. The Company utilises advanced production
technologies such as chip on board (COB), chip on glass (COG), surface mount
technology (SMT), ball grid array (BGA), tape automated bonding (TAB), and outer
lead bonding (OLB) technologies. Further information is available on Nam Tai's
web-site at www.namtai.com.
Except for the historical information contained herein, matters discussed in
this press release are forward-looking statements. For example, the Company's
forward guidance for 2001 profitability is dependant upon many factors including
the level of overall growth of the mobile phone market, end-user demand,
competitive pressures, changes in general economic conditions, and currency
fluctuations. Other factors that might cause differences in this and the other
forward looking statements, include, but are not limited to, those discussed in
the Company's reports filed with the Securities and Exchange Commission from
time to time, such as the factors set forth in Item 3 "Key Information - Risk
Factors" in the Company's Annual Report on Form 20-F for the year ended December
31, 2000.
Page 3 of 8
NAM TAI ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
FOR THE PERIODS ENDED SEPTEMBER 30, 2001 AND 2000
(In Thousands of US Dollars except share data)
Unaudited Unaudited
Three months ended Nine months ended
September 30 September 30
2001 2000 2001 2000
------------------------------------------------ ----------- ----------- ----------- -----------
Net sales $ 59,551 $ 57,249 $ 166,920 $ 152,381
Cost of sales 50,433 48,267 148,680 129,010
----------- ----------- ----------- -----------
Gross profit 9,118 8,982 18,240 23,371
Costs and expenses
Selling, general and administrative expenses 5,199 4,582 16,749 12,169
Research and development expenses 694 851 2,266 2,574
----------- ----------- ----------- -----------
5,893 5,433 19,015 14,743
----------- ----------- ----------- -----------
Income (loss) from operations 3,225 3,549 (775) 8,628
Gain on disposal of land - 42 18 355
Interest income 259 862 982 2,564
Other (loss) income - net (192) 84 (473) 11,520
Equity in income (loss) of affiliated companies 464 (79) 768 (110)
----------- ----------- ----------- -----------
Income before income taxes and minority interest 3,756 4,458 520 22,957
Income taxes expenses (1) (240) (116) (564)
----------- ----------- ----------- -----------
Income before minority interest 3,755 4,218 404 22,393
Minority interest (41) 1 (24) 14
----------- ----------- ----------- -----------
Net income $ 3,714 $ 4,219 $ 380 $ 22,407
=========== =========== =========== ===========
Net income per share
Basic $ 0.36 $ 0.47 $ 0.04 $ 2.53
=========== =========== =========== ===========
Diluted $ 0.36 $ 0.46 $ 0.04 $ 2.45
=========== =========== =========== ===========
Weighted average number of shares (`000')
Basic 10,197 8,889 10,208 8,866
Diluted 10,314 9,187 10,333 9,133
Page 4 of 8
NAM TAI ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEETS
AS AT SEPTEMBER 30, 2001 AND DECEMBER 31, 2000
(In Thousands of US Dollars)
Unaudited Audited
September 30 December 31
2001 2000
--------------------------------------------------------------------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 40,108 $ 58,896
Marketable securities 7,500 7,937
Accounts receivable, net 42,638 37,550
Inventories 17,300 27,172
Prepaid expenses and deposits 5,601 1,755
Income taxes recoverable 1,164 2,042
-------------------------
Total current assets 114,311 135,352
Investments in affiliated companies 2,822 2,054
Property, plant and equipment, at cost 98,362 71,624
Less: accumulated depreciation and amortization (33,190) (27,025)
-------------------------
65,172 44,599
Intangible assets - net 23,568 24,996
Other assets 1,369 1,369
-------------------------
Total assets $ 207,242 $ 208,370
=========================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable $ 22 $ 1,499
Short term debt - 24
Accounts payable and accrued expenses 38,594 40,224
Amount due to a related party 4,044 2,691
Dividend payable 1,032 904
Income taxes payable 183 442
-------------------------
Total current liabilities 43,875 45,784
Deferred income taxes 34 34
-------------------------
Total liabilities 43,909 45,818
Minority interest 215 188
Shareholders' equity:
Common shares 105 102
Additional paid-in capital 111,302 105,963
Retained earnings 51,698 56,304
Accumulated other comprehensive income (Note 1) 13 (5)
-------------------------
Total shareholders' equity 163,118 162,364
Total liabilities and shareholders' equity $ 207,242 $ 208,370
=========================
Page 5 of 8
NAM TAI ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE PERIODS ENDED SEPTEMBER 30, 2001 AND 2000
(In Thousands of US Dollars)
Unaudited Unaudited
Three months ended Nine months ended
September 30 September 30
2001 2000 2001 2000
------------------------------------------------------------ ------------ ----------- ------------ -----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 3,714 $ 4,219 $ 380 $ 22,407
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 2,904 1,809 9,260 5,424
Loss (gain) on disposal of property, plant and equipment 67 57 133 (255)
Unrealised loss on marketable securities - - 437 -
Gain on disposal of marketable securities - - - (10,783)
Gain on disposal of investment in an affiliated company - - - (1,346)
Equity in (income) loss of affiliated companies less (464) 79 (768) 110
dividend received and amortisation of goodwill
amortization
Fair value of shares issued as compensation - - - 135
Minority interest 41 (1) 24 (14)
Changes in current assets and liabilities, net of effects
of acquisitions and disposals:
(Increase) decrease in accounts receivable (269) 1,865 (5,048) (9,995)
(Increase) decrease in inventories (17) (1,747) 9,894 (9,108)
Decrease (increase) in prepaid expenses and deposits 1,077 84 (3,844) 382
(Increase) decrease in income taxes recoverable (41) 84 878 238
Increase (decrease) in notes payable 17 40 (1,477) (6,909)
Increase (decrease) in accounts payable and accrued 2,269 1,327 (1,644) 14,343
expenses
Repayment of capital leases - - (65) -
Increase in amount due to a related party 1,400 - 1,313 -
(Decrease) increase in income taxes payable (20) 143 (259) 348
------------ ----------- ------------ -----------
Total adjustments 6,964 3,740 8,834 (17,430)
------------ ----------- ------------ -----------
Net cash provided by operating activities $ 10,678 $ 7,959 $ 9,214 $ 4,977
------------ ----------- ------------ -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of marketable securities $ - $ (7,500) $ - $ (7,500)
Purchase of property, plant and equipment (4,074) (973) (27,675) (2,269)
Decrease in other assets - - - 159
Increase in investment of subsidiaries - - (85) -
Proceeds from disposal of investment in an - - - 3,875
affiliated company
Purchase of interest in affiliated companies - (2,036) - (2,243)
Proceeds from disposal of property, plant and 4 12 283 388
equipment
Proceeds from disposal of marketable securities - - - 22,588
------------ ----------- ------------ -----------
Net cash (used in) provided by investing activities $ (4,070) $ (10,497) $ (27,477) $ 14,998
------------ ----------- ------------ -----------
Page 6 of 8
NAM TAI ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE PERIODS ENDED SEPTEMBER 30, 2001 AND 2000
(In Thousands of US Dollars)
Unaudited Unaudited
Three months ended Nine months ended
September 30 September 30
2001 2000 2001 2000
--------------------------------------------------------- --------- --------- --------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES
Share buy-back program $ - $ - $ (1,892) $ (73)
Dividends paid (1,002) (799) (2,915) (11,180)
Repayment of short term debt - - (24) -
Proceeds from shares issued on exercise of options 3,075 1,170 4,306 1,465
and warrants
Contribution by minority interest - - - 200
--------- --------- --------- ---------
Net cash provided by (used in) financing activities $ 2,073 $ 371 $ (525) $ (9,588)
--------- --------- --------- ---------
Foreign currency translation adjustments 1 (6) - (5)
--------- --------- --------- ---------
Net increase (decrease) in cash and cash equivalents 8,682 (2,173) (18,788) 10,382
--------- --------- --------- ---------
Cash and cash equivalents at beginning of period 31,426 66,770 58,896 54,215
--------- --------- --------- ---------
Cash and cash equivalents at end of period $ 40,108 $ 64,597 $ 40,108 $ 64,597
========= ========= ========= =========
Page 7 of 8
NAM TAI ELECTRONICS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
FOR THE PERIODS ENDED SEPTEMBER 30, 2001 AND 2000
(In Thousands of US Dollars)
1. Accumulated other comprehensive income represents foreign currency
translation adjustments and unrealised gain on marketable securities. The
comprehensive income of the Company was $398 and $22,149 for the nine
months ended September 30, 2001 and September 30, 2000, respectively.
2. Business segment information - The Company operates principally in the
consumer electronic product segment of the electronics manufacturing
services (EMS) industry. A summary of the net sales, income from operations
and identifiable assets by geographic areas is as follows:
Unaudited Unaudited
Three months ended Nine months ended
September 30 September 30
2001 2000 2001 2000
----------------------------------------- ----------- ---------- ----------- -----------
Net sales from operations within:
- Hong Kong:
Unaffiliated customers $ 50,754 $ 53,909 $ 149,319 $ 147,023
- PRC, excluding Hong Kong:
Unaffiliated customers 8,797 3,340 17,601 5,358
Intersegment sales 38,472 50,526 114,712 137,849
- Intersegment eliminations (38,472) (50,526) (114,712) (137,849)
----------- ---------- ----------- -----------
Total net sales $ 59,551 $ 57,249 $ 166,920 $ 152,381
=========== ========== =========== ===========
Income (loss) from operations within:
- PRC, excluding Hong Kong $ 2,740 $ 2,717 $ (169) $ 6,322
- Hong Kong 974 1,502 549 16,085
----------- ---------- ----------- -----------
Total net income $ 3,714 $ 4,219 $ 380 $ 22,407
=========== ========== =========== ===========
Unaudited Audited
Sept.30,2001 Dec.31,2000
----------------------------------------- ------------ ------------
Identifiable assets by geographic area:
- PRC, excluding Hong Kong $ 69,950 $ 71,242
- Hong Kong 137,292 137,128
------------ ------------
Total assets $ 207,242 $ 208,370
============ ============
Page 8 of 8
Management Discussion and Analysis of Financial Condition
and Results of Operations
Results of Operations
General
The Company derives its revenues principally from the design and manufacturing
services to original equipment manufacturers (OEMs) of consumer electronic
products and components. Products manufactured by Nam Tai include,
telecommunication products, palm-sized PCs, personal digital assistants,
electronic dictionaries, calculators and smart card readers as well as
electronic components and subassemblies including liquid crystal display (LCD)
panels, transformers, and LCD modules used in the manufacture of cellular phones
and various other electronic products. It also manufactures lithium ion
rechargeable battery packs that are used in cellular phones. The Company carries
out all of its manufacturing operations in southern China.
Nine Months Ended September 30, 2001 Compared to the Nine Months Ended September
30, 2000
The Company's net sales for the nine months ended September 30, 2001 were
$166,920,000 an increase of 10% compared to $152,381,000 in the corresponding
period in 2000. The increase in sales is primarily attributed to sales arising
from the Company's acquisition of an LCD panel and transformer manufacturer at
the end of October 2000. Sales also increased for LCD modules and lithium ion
rechargeable battery packs for mobile phone. Sales increases were partially
offset by a reduction in sales of calculators and other finished products.
Management believes sales of calculators, personal organizers, and electronic
dictionaries to its OEM customers will continue to be an important line of
business; however, telecommunication products and components, including LCD
modules and rechargeable battery packs for cellular phones, along with new
products will continue to be an increasing proportion of total revenue in the
future.
The gross profit for the nine months ended September 30, 2001 was $18,240,000,
(11% gross margin), compared with $23,371,000, (15% gross margin) in the prior
year period. The decline in the gross margin is primarily the result of $5.5
million in inventory write-offs and provisions for slow moving raw materials and
$0.3 million for severance payment.
Selling, general and administrative expenses for the nine months ended September
30, 2001 were $16,749, 000, 10% of sales, including stock option compensation
expense of $0.8 million and realignment charges of $0.7 million. This compares
to $12,169,000, 8% of sales in the prior year period. Research and development
expenses for the nine months ended September 30 , 2001 were $2,266,000 1.4% of
sales, compared to $2,574,000, 1.7% of sales in the prior year period.
Operating income for the nine months ended September 30, 2001 was a loss of
$775,000 compared to a gain of $8,628,000 in the prior year period. Net income
for the nine months ended September 30, 2001 was $380,000. This compares to
$22,407,000 in the prior year period, which included a $12.1 million gain on the
sale of non-core assets.
Liquidity and Capital Resources
Traditionally, the Company has relied primarily upon internally generated funds
and trade finances facilities to finance its operations and expansion.
As of September 30, 2001 the Company has $40,108,000 in cash and cash
equivalents.
As of September 30, 2001 the Company has a working capital surplus of
$70,402,000 compared to $92,491,000 as at September 30, 2000. The decrease in
working capital is primarily related to the purchase of property plan and
equipment.
The Company has generated sufficient funds from its operating activities to
finance its operations.
At September 30, 2001, Nam Tai had in place general banking facilities with
three financial institutions aggregating $76.5 million. Such facilities, which
are subject to annual review, permit the Company to obtain overdrafts, lines of
credit for forward exchange contracts, letters of credit, import facilities,
trust receipt financing, shipping guarantees and working capital, as well as
fixed loans. As at September 30, 2001 the Company had utilized approximately
$3.6M under such general credit facilities and had available unused credit
facilities of $72.9 million.
The Company also has a $15 million term loan facility with one of its bankers,
none of which has not been utilized as of September 30, 2001. As at September
30, 2001 there was no long-term debt.
The Company believes that cash on hand and internally generated funds, in
addition to banking facilities are sufficient to fund working capital
requirements and planned capital additions and investments.
NEWS RELEASE
NAM TAI ELECTRONICS, INC.
REPRESENTED BY: PAN PACIFIC I.R. LTD.
SUITE 1790 - 999 WEST HASTINGS STREET
VANCOUVER, B.C. CANADA V6C 2W2
TEL: (604) 669-7800 FAX: (604) 669-7816
TOLL FREE TEL & FAX: 1-800-661-8831
E-MAIL: investor@namtai.com
WEB SITE: www.namtai.com
CONTACT: LORNE WALDMAN
NAM TAI ELECTRONICS, INC.
DIRECTOR EXERCISES WARRANT FOR PURCHASE OF 300,000 SHARES
VANCOUVER, CANADA Oct 8, 2001 -- Nam Tai Electronics, Inc. ("Nam Tai" or the
"Company") (NASDAQ/NM Symbol: NTAI and NTAIW; CBOE Symbol: QNA) announced that a
Nam Tai independent director elected to exercise a warrant to purchase 300,000
common shares at $10.25 per share. Nam Tai will realize $3,075,000 in proceeds
from the exercise of the warrant.
Dividends
The record date for the third quarter dividend of $0.10 per share is September
30, 2001 and the payment date is October 21, 2001.
Third Quarter Results
Nam Tai will release its unaudited third quarter results for the period ended
September 30, 2001 before the market opens on Monday, October 29, 2001.
The Company will hold a conference call on Monday, October 29, 2001 @ 10:00 a.m.
Eastern Time for analysts to discuss the third quarter results with management.
Analysts who wish to receive the toll free dial-in number for this conference
call are invited to contact the Investor Relations Office at 1-800-661-8831 no
later than 6:00 p.m. Eastern Time on Friday, October 26, 2001.
Shareholders, media, and interested investors are invited to listen to the live
conference call by dialing (612) 332-0820.
Nam Tai Electronics, Inc. is an electronics design and manufacturing service
provider to some of the world's leading original equipment manufacturers. Nam
Tai manufactures telecommunication products, palm-sized PCs, personal digital
assistants, linguistic products, calculators and various components including
LCD modules for cellular phones, lithium ion rechargeable battery packs,
transformers and LCD panels. The Company utilises advanced production
technologies such as chip on board (COB), chip on glass (COG), surface mount
technology (SMT), ball grid array (BGA), tape automated bonding (TAB), and outer
lead bonding (OLB) technologies. Further information is available on Nam Tai's
website at www.namtai.com.
NEWS RELEASE
NAM TAI ELECTRONICS, INC.
REPRESENTED BY: PAN PACIFIC I.R. LTD.
SUITE 1790 - 999 WEST HASTINGS STREET
VANCOUVER, B.C. CANADA V6C 2W2
TEL: (604) 669-7800 FAX: (604) 669-7816
TOLL FREE TEL & FAX: 1-800-661-8831
E-MAIL: investor@namtai.com
WEB SITE: www.namtai.com
CONTACT: LORNE WALDMAN
NAM TAI ELECTRONICS, INC.
ANNOUNCES STOCK REPURCHASE PROGRAM
VANCOUVER, CANADA Oct 1, 2001 -- Nam Tai Electronics, Inc. ("Nam Tai" or the
"Company") (NASDAQ/NM Symbol: NTAI and NTAIW; CBOE Symbol: QNA) today announced
that its Board of Directors has approved a stock repurchase program to buy-back
up to an aggregate of two million common shares in the open market from time to
time at prevailing market prices.
After the recent terrible tragedy in US and the collapse of the World Trade
Centre in New York, the stock market experienced great pressure and share prices
fluctuated severely. Nam Tai shares were no exception, also being impacted and
becoming undervalued. Accordingly, the Board of Directors decided to implement a
repurchase program that is expected to continue for a three month period, unless
extended or shortened by the Board of Directors, in accordance with SEC Rule
10b-18 and the announcement from the SEC after the emergency in New York
relaxing the rules for repurchase programs. The Company plans to use existing
cash balances to finance the repurchases. Based on June 30, 2001 cash on hand of
$31.4 million and book value per share of $15.46 the Company believes that the
current market price does not adequately reflect the long term potential of the
Company. Nam Tai does not expect the repurchase program will impair its ability
to expand its business through internal growth and acquisitions. According to
the current sales information, the sales of the Company still enjoy slight
growth compared with the year of 2000 and the Company has confidence it can show
profitable results at the end of this year.
Dividends
The record date for the third quarter dividend of $0.10 per share is September
30, 2001 and the payment date is October 21, 2001.
Nam Tai Electronics, Inc. is an electronics design and manufacturing service
provider to some of the world's leading original equipment manufacturers. Nam
Tai manufactures telecommunication products, palm-sized PCs, personal digital
assistants, linguistic products, calculators and various components including
LCD modules for cellular phones, lithium ion rechargeable battery packs,
transformers and LCD panels. The Company utilises advanced production
technologies such as chip on board (COB), chip on glass (COG), surface mount
technology (SMT), ball grid array (BGA), tape automated bonding (TAB), and outer
lead bonding (OLB) technologies. Further information is available on Nam Tai's
website at www.namtai.com.
The Registrant hereby incorporates this Report on Form 6-K into its Registration
Statements on Form F-3 (Registration Nos. 333-36135 and 333-58468).
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.
For and on behalf of
Nam Tai Electronics, Inc.
/s/ M. K. KOO
-----------------------
M. K. KOO
CHIEF FINANCIAL OFFICER
Date: November 1, 2001