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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 April 23, 1997
NAM TAI ELECTRONICS, INC.
(Registrant's name in English)
Unit 9, 15/F, Tower 1
China Hong Kong City, 33 Canton Road
TST, Kowloon, Hong Kong
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NAM TAI ELECTRONICS, INC. CONTACT: WENDY L. WISEMAN
SUITE 530 - 999 WEST HASTINGS STREET P.R. SECRETARY
VANCOUVER, B.C. CANADA V6C 2W2
TEL: (604) 669-7800 FAX: (604) 669-7816
TOLL FREE TEL & FAX: 1-800-661-8831 NEWS RELEASE
INTERNET WEBSITE: http://www.namtai.com
NAM TAI ELECTRONICS, INC. ANNOUNCES
FIRST QUARTER RESULTS
SALES INCREASE BY 23%, NET INCOME UP 139%
VANCOUVER, CANADA April 23, 1997 -- Nam Tai Electronics, Inc. ("Nam Tai" or the
"Company") (NASDAQ Symbol: NTAIF, TSE Symbol: NMT) today announced results for
the first quarter ended March 31, 1997. Net sales for the first quarter were
$31.2 million, an increase of 23% compared to sales of $25.4 million for the
first quarter ended March 31, 1996. Operating income increased 81% to $3.63
million compared to 1996 first quarter operating income of $2.01 million. Net
income increased 139% to $5.57 million compared to $2.33 million in the first
quarter of 1996. Earnings per share were $0.71 compared to $0.29 in the prior
year period. Profit on the sale of part of the Company's investment in Deswell
Industries Inc., net of a provision relating to the sale of its manufacturing
property in Burnaby, Canada, contributed $2.05 million or $0.26 per share to net
income and earnings per share, respectively.
The Company is pleased to report a continuing growth in sales and improved
profit margin. The improved margin is principally due to more favourable
component pricing, in a large part due to the decline in the Japanese currency
during the first quarter, and improved profitability as utilization of the new
factory complex increases. In addition, Shenzhen Namtek Co., Ltd. (Nam Tai's
software development subsidiary) received income of $0.3 million for work
previously completed.
"We are very pleased to report the continued strengthening of both our sales
performance and gross profit margin," reported Mr. M.K. Koo, Chairman of the
Company. "We are also pleased that we have been able to take steps to streamline
our operations and take continuing advantage of our expanded manufacturing
capacity. Order backlog at March 31, 1997 stood at a record $43.3 million
compared to $24.7 million at March 31, 1996.
Nam Tai also regrets to announce the resignation of its Chief Financial Officer,
Ronald G. Erdman, who joined the Company in January 1996. Mr. Erdman will
continue to assist the Company on special project work while Mr. M.K. Koo will
assume the Chief Financial Officer responsibilities on an interim basis.
Nam Tai's Annual Meeting of Shareholders will be held at 4:30 p.m. on June 26,
1997 at the Plaza Hotel, Fifth Avenue at Central Park South, New York. The
record date for the Annual Meeting has been
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set at May 7, 1997. The Company's dividend plan and record date will be
announced at the Annual Meeting.
This release is expressed in U.S. dollars and contains certain forward-looking
statements. The actual results may differ significantly as a result of various
factors including, but not limited to: the possibility of fluctuations in demand
for the products manufactured by the Company, reductions or cancellations in
customer requirements and the ability to manufacture and ship customer orders to
required specifications.
Nam Tai is a full service contract manufacturer which provides hardware and
software design, plastic moulding, component purchasing, assembly, quality
control and shipping services to major original equipment manufacturers ("OEMs")
from Japan and North America. The Company makes use of highly advanced
technology at its ISO 9001 certified facilities in Shenzhen, China. It also
maintains marketing and administrative operations in Hong Kong and Vancouver,
Canada, respectively. The Company's electronic products include personal
organizers, spell checkers, dictionaries, calculators and IC Card Readers as
well as complex electronic subassemblies and components. The Company's customers
include Canon, Casio, Citizen, Matsushita Battery, Nintendo (which orders
through Sharp), Optrex, Radio Shack, Sanyo Electric, Seiko Instruments, Sharp
and Texas Instruments.
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NAM TAI ELECTRONICS, INC.
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
FOR THE PERIOD ENDED MARCH 31, 1997 AND 1996
(In Thousands of U.S. Dollars except per share data)
Three months ended March 31
1997 1996
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Net sales $ 31,152 $ 25,357
Cost of sales 23,906 20,321
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Gross profit 7,246 5,036
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Costs and expenses
Selling, general and
administrative expenses 3,352 2,875
Research and development expenses 264 154
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3,616 3,029
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Income from operations 3,630 2,007
Gain/(loss)on disposal of fixed assets 2 0
Other income - (loss) net 2,037 367
Interest (expense) (26) (1)
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Income from consolidated companies
before income taxes and minority interest 5,643 2,373
Provision for income tax (expense) recovery (73) (40)
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Net income $ 5,570 $ 2,333
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Earnings per share $ 0.71 $ 0.29
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Weighted average shares outstanding
and common stock equivalents 7,898,900 8,184,691
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NAM TAI ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEET
AS AT MARCH 31, 1997 AND DECEMBER 31, 1996
(In Thousands of U.S. Dollars)
March 31 December 31
1997 1996
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ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $ 750 $ 1,761
Term deposits 19,820 15,980
Accounts receivable, net 21,011 16,589
Inventories 10,820 10,511
Prepaid expenses and deposits 1,406 1,768
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Total current assets 53,807 46,609
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Long term investment 2,199 4,050
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Property, plant and equipment, at cost 46,551 46,751
Less: accumulated depreciation and
amortization (11,296) (10,264)
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35,255 36,487
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Other assets 1,256 1,245
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Total assets $92,517 $ 88,391
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable 2,681 5,186
Accounts payable and accrued expenses 17,176 16,184
Income taxes payable 104 31
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Total current liabilities 19,961 21,401
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Shareholders' equity:
Common stock 78 78
Additional paid-in capital 28,572 28,572
Stock option grants 305 305
Retained earnings 43,567 38,007
Foreign currency translation adjustment 34 28
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Total shareholders' equity 72,556 66,990
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Total liabilities and shareholders' equity $ 92,517 $ 88,391
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The Registrant hereby incorporates this Report on Form 6-K into its Registration
Statement on Form F-3 (Registration No. 33-91553).
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.
by
(S.d.) M.K. Koo
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M.K. Koo, Chairman
Date: May 21, 1997