1 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 2 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 3 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. 4 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 ---- ---- Net sales $ 31,152 $ 25,357 Cost of sales 23,906 20,321 ------ ------ Gross profit 7,246 5,036 ------ ------ Costs and expenses Selling, general and administrative expenses 3,352 2,875 Research and development expenses 264 154 ------ ------ 3,616 3,029 ------ ------ 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) ------ ------ Income from consolidated companies before income taxes and minority interest 5,643 2,373 Provision for income tax (expense) recovery (73) (40) ------ ------ Net income $ 5,570 $ 2,333 ====== ====== Earnings per share $ 0.71 $ 0.29 ====== ====== Weighted average shares outstanding and common stock equivalents 7,898,900 8,184,691 ========= ========= 5 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 -------- ----------- 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 ------ ------ Total current assets 53,807 46,609 ------ ------ Long term investment 2,199 4,050 ------ ------ Property, plant and equipment, at cost 46,551 46,751 Less: accumulated depreciation and amortization (11,296) (10,264) ------- ------- 35,255 36,487 ------ ------ Other assets 1,256 1,245 ------ ------ Total assets $92,517 $ 88,391 ====== ====== 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 ------ ------ Total current liabilities 19,961 21,401 ------ ------ 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 ------ ------ Total shareholders' equity 72,556 66,990 ------ ------ Total liabilities and shareholders' equity $ 92,517 $ 88,391 ====== ====== 6 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 ----------------------- M.K. Koo, Chairman Date: May 21, 1997