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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 the month
of
July 18 and July 24, 1996
NAM TAI ELECTRONICS, INC.
(Registrant's name in English)
Citco Building, Wickhams Cay, P.O. Box 662,
Road Town, Tortola, British Virgin Islands
(Address of principal executive offices)
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NAM TAI ELECTRONICS, INC. CONTACT: WENDY L. WISEMAN
CORPORATE OFFICE: P.R. SECRETARY
SUITE 530 - 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 NEWS RELEASE
NAM TAI ELECTRONICS, INC. ANNOUNCES
ADVANCED GRAVIS INVESTMENT NOT TO PROCEED
VANCOUVER, CANADA July 18, 1996 -- Nam Tai Electronics, Inc. ("Nam Tai" or the
"Company") (NASDAQ/NMS Symbol: NTAIF) today announced that certain conditions
precedent to its investment in Advanced Gravis Computer Technology Ltd.
("Advanced Gravis") were not fulfilled to the satisfaction of Nam Tai and that
Nam Tai does not intend to proceed with the investment.
On June 17, 1996, Nam Tai announced that it had entered into a letter of intent
with Advanced Gravis whereby it was proposed that Nam Tai purchase between 25%
and 30% of the shares outstanding (35% to 45% fully diluted) in Advanced Gravis
by way of private placement. The proposed investment was subject to the
satisfaction of certain conditions including the approval of Nam Tai's Board of
Directors. Nam Tai had until July 26, 1996 to notify Advanced Gravis of
satisfaction of its conditions in order for the investment to proceed.
"The proposed investment will not proceed but Nam Tai intends to pursue other
acquisition opportunities in the consumer electronics industry to expand its
product lines and add new customers, particularly in North America," commented
Mr. M.K. Koo, Chairman of Nam Tai.
Release of Second Quarter Financial Results
The Company also announced it intends to release its financial results for the
second quarter ended June 30, 1996 following the close of market on Wednesday,
July 24, 1996.
Nam Tai is registered in the British Virgin Islands and maintains offices in
Hong Kong and Vancouver, Canada. It designs, develops, manufactures, assembles
and sells consumer electronic products manufactured by it in the People's
Republic of China at its ISO 9001 certified operations. The Company's products
include personal organizers, spell checkers, dictionaries, LCD modules, IC card
readers and calculators. To position itself to manufacture more sophisticated
products, the Company has made advances in the use of COB, SMT, TAB, OLB and
FPHS technologies. 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.
-end-
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NAM TAI ELECTRONICS, INC. CONTACT: WENDY L. WISEMAN
CORPORATE OFFICE: P.R. SECRETARY
SUITE 530 - 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 NEWS RELEASE
NAM TAI ELECTRONICS, INC. ANNOUNCES
SECOND QUARTER 1996 RESULTS:
WEAKER RESULTS IN LINE WITH EXPECTATIONS
VANCOUVER, CANADA July 24, 1996 -- Nam Tai Electronics, Inc. ("Nam Tai" or the
"Company") (NASDAQ/NMS Symbol: NTAIF) today announced unaudited results for the
second quarter ended June 30, 1996. Sales for the second quarter ended June 30,
1996 decreased by 17% to $24,885,000 from $30,065,000 for the second quarter of
1995. Operating income for the second quarter of 1996 decreased by 58% to
$1,201,000 from $2,880,000 for the prior year period. Net income for the period
decreased by 56% to $1,409,000 from $3,210,000 for 1995. Earnings per share for
the second quarter of 1996 decreased to $0.17 per share from $0.39 per share for
the prior year period.
Net sales for the six months ended June 30, 1996 decreased by 4% to $50,242,000
from $52,508,000 for the first six months of 1995. Operating income for the
first six months of 1996 decreased by 29% to $3,208,000 from $4,489,000 for the
prior year period. Net income for the period decreased by 21% to $3,742,000 from
$4,766,000 for 1995. Earnings per share for the first six months of 1996
decreased to $0.46 per share from $0.58 per share for the prior year period.
The Company previously announced its expectation that the second quarter 1996
results would be less than the comparable period in 1995. Strong sales demand
during the second quarter of 1995 in combination with weakness in the second
quarter of 1996 resulted in the comparative results. In addition, expenses
associated with the start-up and operation of the new facility in Shenzhen were
incurred.
"Nam Tai remains profitable and the reported results are in line with our
expectations. World-wide market conditions have weakened, and although we expect
increasing sales through the third and fourth quarters, we must work hard to
achieve total sales at or above 1995," commented Mr. M.K. Koo, Chairman of Nam
Tai. "We have now begun to utilize the new factory complex which is a valuable
addition to our Company and expect to require the additional available capacity
as industry conditions improve," he commented.
The new plant facility was officially opened on May 16, 1996. The existing
building will be renovated following transfer of operations to the new facility
and additional capacity is anticipated to be required prior to year-end.
The annual general meeting of Nam Tai was held on June 20, 1996 in New York. At
the meeting an annual dividend of $0.03 per share was announced, an increase of
100% over the dividend announced for the prior year. It was also announced that
the Company intends to adopt the policy of increasing its dividend on a year by
year basis over the next several years to a level consistent with other
established corporations, following which it will increase its dividend annually
on a basis consistent with the Company's growth in sales and net income.
Nam Tai also announced on June 17, 1996 that it had entered into a letter of
intent for the purchase of approximately 27% of the shares outstanding (35% to
45% fully diluted) of Advanced Gravis Computer Technology Ltd. ("Advanced
Gravis") by way of private placement. On July 18, 1996, Nam Tai announced that
certain conditions precedent to its investment were not fulfilled to the
satisfaction of Nam Tai and that Nam Tai did not intend to proceed with the
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investment. The Company intends to pursue appropriate acquisition opportunities
such as this to expand its product lines and add new customers, particularly in
North America.
Nam Tai is registered in the British Virgin Islands and maintains offices in
Hong Kong and Vancouver, Canada. It designs, develops, manufactures, assembles
and sells consumer electronic products manufactured by it in the People's
Republic of China at its ISO 9001 certified operations. The Company's products
include personal organizers, spell checkers, dictionaries, LCD modules, IC card
readers and calculators. To position itself to manufacture more sophisticated
products, the Company has made advances in the use of COB, SMT, TAB, OLB and
FPHS technologies. 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.
-more-
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NAM TAI ELECTRONICS, INC.
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
FOR THE PERIOD ENDED JUNE 30, 1996 AND 1995
(In Thousands of U.S. Dollars except per share data)
<TABLE>
<CAPTION>
Three Months ended Six Months ended
June 30, June 30,
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net sales $ 24,885 $ 30,065 $ 50,242 $ 52,508
Cost of sales 19,978 24,078 40,299 42,265
----------- ----------- ----------- -----------
Gross profit 4,907 5,987 9,943 10,243
----------- ----------- ----------- -----------
Costs and expenses
Selling, general and
administrative expenses 3,448 2,971 6,323 5,525
Research and development expenses 258 136 412 229
----------- ----------- ----------- -----------
3,706 3,107 6,735 5,754
----------- ----------- ----------- -----------
Income from operations 1,201 2,880 3,208 4,489
(Loss) gain on disposal of
fixed assets -- (7) -- (33)
Other income - net 250 435 617 458
Interest expense (18) (39) (19) (58)
----------- ----------- ----------- -----------
Income from consolidated companies
before income taxes and
minority interest 1,433 3,269 3,806 4,856
Income tax recovery (expense) (24) (59) (64) (90)
----------- ----------- ----------- -----------
Net income $ 1,409 $ 3,210 $ 3,742 $ 4,766
=========== =========== =========== ===========
Earnings per share $ 0.17 $ 0.39 $ 0.46 $ 0.58
=========== =========== =========== ===========
Weighted average common shares
outstanding and common stock
equivalents 8,241,218 8,124,661 8,212,954 8,120,864
=========== =========== =========== ===========
</TABLE>
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NAM TAI ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEET
AS AT JUNE 30, 1996 AND DECEMBER 31, 1995
(In Thousands of U.S. Dollars)
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
-------- ------------
ASSETS (unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 1,670 $ 10,927
Term deposits 15,191 6,435
Accounts receivable 13,881 17,699
Inventories 9,091 10,425
Prepaid expenses and deposits 5,325 1,525
-------- --------
Total current assets 45,158 47,011
-------- --------
Long term investment 3,931 3,931
Property, plant and equipment, at cost 40,747 35,365
Less: accumulated depreciation and amortization (9,106) (7,730)
-------- --------
31,641 27,635
-------- --------
Other assets 821 704
-------- --------
Total assets $ 81,551 $ 79,281
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term bank borrowings -- 273
Notes payable 5,574 5,320
Accounts payable and accrued expenses 11,642 13,408
Dividend payable 243 --
Income taxes payable 124 107
-------- --------
Total liabilities 17,583 19,108
-------- --------
Shareholders' equity:
Common stock 81 80
Additional paid-in capital 28,572 28,182
Stock option grants 371 467
Retained earnings 34,916 31,417
Foreign currency translation adjustment 28 27
-------- --------
Total shareholders' equity 63,968 60,173
-------- --------
Total liabilities and shareholders' equity $ 81,551 $ 79,281
======== ========
</TABLE>
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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
(Sd.) Koo Ming Kown
-----------------------
Koo Ming Kown
Chairman
Date: July 29, 1996
