<PAGE> 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 THE MONTH
OF
MAY 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)
<PAGE> 2
NAM TAI ELECTRONICS, INC. NEWS RELEASE
SUITE 530 - 999 WEST HASTINGS STREET CONTACT: WENDY WISEMAN
VANCOUVER, B.C. CANADA V6C 2W2 P.R. SECRETARY
TEL: (604) 669-7800 FAX: (604) 669-7816
TOLL FREE TEL & FAX: 1-800-661-8831
NAM TAI ELECTRONICS, INC. ANNOUNCES
FIRST QUARTER RESULTS
SALES INCREASE BY 13%; NET INCOME UP 50%
VANCOUVER, CANADA (May 7, 1996) -- Nam Tai Electronics, Inc. ("Nam Tai" or the
"Company") (NASDAQ/NMS Symbol: NTAIF) today announced unaudited results for the
first quarter ended March 31, 1996. Sales for the first quarter increased by
13% to $25,357,000 from $22,443,000 for the first quarter ended March 31, 1995.
Operating income increased by 25% to $2,007,000 compared to $1,609,000 for the
previous year. Net income increased by 50% to $2,333,000 from $1,556,000 for
the first quarter ended March 31, 1995. Earnings per share for the first
quarter increased to $0.29 per share from $0.19 per share for the previous
year.
The Company is pleased with the first quarter results, particularly given
general industry conditions slowed following a relatively weak Christmas sales
period. This weakness is expected to continue into the second quarter during
which sales for the Company may not reach the level of sales experienced for
the quarter ended June 30, 1995.
"We expect some weakness in the second quarter compared with the comparable
period in 1995, however, the outlook for the third and fourth quarters is
strong and we expect to achieve our goal for 1996 of a significant increase in
revenue and profitability over 1995," commented Mr. M.K. Koo, Chairman of Nam
Tai.
The Company is now utilizing its new factory complex, completed on time and
within budget thanks to the combined efforts of Shimizu Corporation of Japan
and Guangdong 2nd Building Engineering Co. M.K. Koo further noted, "The
additional capacity is extremely valuable to Nam Tai as the Company continues
to grow. Production lines are now being moved to the new factory, following
which the old facility will be renovated to prepare for the installation of new
equipment. Nam Tai is proud to offer expanded service and higher technology
production from our modern ISO 9001 Certified facilities."
The Grand Opening Ceremony for the new plant will be held on May 16, 1996 to
celebrate production from the new facility. In excess of 300 guests will
attend, representing customers, suppliers and advisors world-wide.
-more-
<PAGE> 3
NAM TAI ELECTRONICS, INC. NEWS RELEASE
SUITE 530 - 999 WEST HASTINGS STREET CONTACT: WENDY WISEMAN
VANCOUVER, B.C. CANADA V6C 2W2 P.R. SECRETARY
TEL: (604) 669-7800 FAX: (604) 669-7816
TOLL FREE TEL & FAX: 1-800-661-8831
Page 2
The Company is also pleased to announce that Mr. Robert McNamara will join the
Board of Directors of Nam Tai effective May 18, 1996. Mr. McNamara has been a
consultant to Nam Tai since 1995 and is currently Managing Director of
Broadview Associates, L.P. of Fort Lee, New Jersey. Prior to joining Broadview
Associates, L.P. in 1995, Mr. McNamara spent fifteen years in the investment
banking business with Smith Barney Inc. and Salomon Brothers Inc., most
recently as head of Salomon Brothers' Technology Group in New York.
In addition to a stronger Board of Directors, Nam Tai also recently announced
the addition of two consultants. Dr. Tadashi Sasaki, a senior executive and
advisor to Sharp Corporation since 1964 (during which he was responsible for
the successful development of the world's first electronic calculator for
commercial sale), and Mr. C.S. Chuang, Managing Director of Inventec Co. of
Taipei, are advising the Company in its efforts to upgrade its technology and
assisting in the development of new products and market opportunities.
As previously announced, Nam Tai's Annual Meeting will be held at 4:30 p.m. on
June 20, 1996 at the Plaza Hotel, Fifth Avenue at Central Park South, New York.
The record date for the Annual Meeting has been set as May 16, 1996. The
Company's dividend plan and record date will be announced at the Annual
Meeting.
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-
<PAGE> 4
NAM TAI ELECTRONICS, INC. NEWS RELEASE
SUITE 530 - 999 WEST HASTINGS STREET CONTACT: WENDY WISEMAN
VANCOUVER, B.C. CANADA V6C 2W2 P.R. SECRETARY
TEL: (604) 669-7800 FAX: (604) 669-7816
TOLL FREE TEL & FAX: 1-800-661-8831
Page 3
NAM TAI ELECTRONICS, INC.
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
FOR THREE MONTHS ENDED MARCH 31, 1996
(In Thousands of U.S. Dollars except per share data)
<TABLE>
<CAPTION>
Three months Three months
ended March 31 ended March 31
1996 1995
-------------- --------------
<S> <C> <C>
Net sales $ 25,357 $ 22,443
Cost of sales 20,321 18,187
-------- --------
Gross profit 5,036 4,256
-------- --------
Costs and expenses
Selling, general and
administrative expenses 2,875 2,554
Research and development expenses 154 93
-------- --------
3,029 2,647
======== ========
Income from operations 2,007 1,609
Gain/(loss)on disposal of fixed assets 0 (26)
Other income - (loss) net 367 23
Interest (expense) (1) (19)
-------- --------
Income from consolidated companies
before income taxes and minority interest 2,373 1,587
Provision for income tax (expense) recovery (40) (31)
-------- --------
Net income $ 2,333 $ 1,556
======== ========
Earnings per share $ 0.29 $ 0.19
======== ========
Weighted average shares outstanding
and common stock equivalents 8,184,691 8,117,009
========= =========
</TABLE>
-more-
<PAGE> 5
NAM TAI ELECTRONICS, INC. NEWS RELEASE
SUITE 530 - 999 WEST HASTINGS STREET CONTACT: WENDY WISEMAN
VANCOUVER, B.C. CANADA V6C 2W2 P.R. SECRETARY
TEL: (604) 669-7800 FAX: (604) 669-7816
TOLL FREE TEL & FAX: 1-800-661-8831
Page 4
NAM TAI ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEET
MARCH 31, 1996 AND DECEMBER 31, 1995
(In Thousands of U.S. Dollars)
<TABLE>
<CAPTION>
March 31 December 31
1996 1995
-- -------- -----------
(unaudited)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 2,034 $ 10,927
Term deposits 16,643 6,435
Accounts receivable 11,696 17,699
Inventories 8,485 10,425
Prepaid expenses and deposits 1,569 1,525
-------- --------
Total current assets 40,427 47,011
-------- --------
Long term investment 3,931 3,931
Property, plant and equipment, at cost 38,113 35,365
Less: Accumulated depreciation (8,438) (7,730)
-------- --------
29,675 27,635
-------- --------
Other assets 821 704
======== ========
Total assets $ 74,854 $ 79,281
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term bank borrowings $ 0 $ 273
Notes payable 3,851 5,320
Accounts payable and accrued expenses 8,331 13,408
Income taxes payable 147 107
-------- --------
Total current liabilities 12,329 19,108
-------- --------
Shareholders' equity:
Common stock 80 80
Additional paid-in capital 28,207 28,182
Outstanding stock options 460 467
Retained earnings 33,750 31,417
Foreign currency translation adjustment 28 27
-------- --------
Total shareholders' equity 62,525 60,173
======== ========
Total liabilities and
shareholders' equity $ 74,854 $ 79,281
======== ========
</TABLE>
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.
<PAGE> 6
For and on behalf of
Nam Tai Electronics, Inc.
by
(Sd.) Koo Ming Kown
-------------------------------------
Koo Ming Kown
Chairman
Date: May 10, 1996
