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 8, 1996 and
October 23, 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 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 MASS PRODUCTION OF IC CARD READERS
AND DELIVERY OF HOME APPLIANCE PRODUCTS
VANCOUVER, CANADA October 8, 1996 -- Nam Tai Electronics, Inc. ("Nam
Tai" or the "Company") (NASDAQ/NMS Symbol: NTAIF) today announced
that the Company recently shipped the world's first production lot
of integrated circuit ("IC") card balance readers (known as "Smart
Card Readers" or "IC Card Readers") to a European bank under order
from a large Japanese OEM customer. Based on information from the
OEM customer, this is the first mass production lot of IC Card
Readers shipped to market in the world.
"IC Cards" are a new development that look like plastic credit cards
yet hold considerably more information, resulting from the use of a
micro-computer chip embedded in the plastic card. This provides a
higher level of security and flexibility of use than credit cards.
Many banks, individually or in groups such as Mondex, are testing IC
Cards as a means of storing and transferring cash electronically.
Credit card companies are also working to replace existing credit
cards with IC Cards for reasons relating to security while other
large companies are studying the use of IC Cards for purposes such
as identification, with added features like electronic cash and
record keeping. These various uses represent the potential for very
substantial worldwide demand as new technologies replace existing
systems of payment.
IC Card Readers are an integral part of any IC Card System and, when
part of an electronic cash system, are used to read out a
description of usage and the remaining balance of unspent cash. Nam
Tai and its OEM customer have been working together on IC Card
Reader development since 1994 and successfully delivered the world's
first sample lot of IC Card Readers to a U.K. bank in 1995. Early
leadership in the development of this new product has allowed the
Company and its OEM customer to develop a strong position in this
rapidly growing business.
In 1996, Nam Tai expects to ship between a half million and one
million IC Card Readers to a number of banks and credit card
companies. A substantial increase in orders is expected in 1997.
Mr. M.K. Koo, Chairman of Nam Tai commented, "We are very pleased to
produce the world's first shipment of this product and contribute to
this great new system which we expect will significantly change the
way money is handled around the world. Because of expected demand
and based on our advanced position in regard to its production, we
anticipate IC Card Readers will be the source of significant
business for Nam Tai in the years ahead."
Another important new product, successfully developed and recently
shipped by Nam Tai, is the first lot of control panel modules for
microwave ovens produced by Sharp Corporation. This represents the
successful diversification by the Company into a new line of
products and is expected to contribute to sales and profitability in
the coming years. Sharp Corporation is an important customer of the
Company and has the world's largest share of the microwave oven
market. This is the first shipment of electronic components for the
home appliance market by Nam Tai, and taken together with new
products such as IC Card Readers, represents an important change in
the nature of the Company's products.
"Following the announcement earlier this year that we are
experiencing soft market conditions, and after reviewing confirmed
orders on hand, the Company now expects sales for 1996 will decline
by up to 10 to 15% compared to 1995," Mr. M.K. Koo further
commented. "Although it appears the Company will experience a
decline in sales this year, we remain in a strong financial position
and are maintaining our profitability. Based on worldwide demand
for new products and the successful introduction of items such as
those noted above, we have all the ingredients to support our
confidence that we will see significant growth in 1997," he
continued.
Nam Tai is a full service contract manufacturer working on behalf of
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 products include
personal organizers, spell checkers, dictionaries, electronic
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.
This release contains certain forward-looking statements and the
actual results may differ significantly as a result of various
factors, including: business conditions in both the electronics
industry and in the markets for which the Company's products are
produced, reductions or cancellations in customer requirements,
competition and technological change.
-end-
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NAM TAI ELECTRONICS, INC. CONTACT: WENDY 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
THIRD QUARTER 1996 RESULTS:
SOLID EARNINGS ON REDUCED SALES
VANCOUVER, CANADA October 23, 1996 -- Nam Tai Electronics, Inc.
("Nam Tai" or the "Company") (NASDAQ/NMS Symbol: NTAIF) today
announced results for the third quarter ended September 30, 1996.
Net sales were $28,005,000, a decrease of 21% compared to sales of
$35,514,000 in the third quarter of 1995. Operating income
decreased 23% to $2,893,000 compared to 1995 third quarter operating
income of $3,736,000. Net income decreased 28% to $3,318,000
compared to $4,637,000 in the third quarter of 1995. Earnings per
share were $0.40 compared to $0.57 in the prior year period. It is
of note that net income for the third quarter of 1995 included
extraordinary income resulting from a refund of China tax in the
amount of $705,000 or $0.09 per share.
Net sales for the nine months ended September 30, 1996 decreased by
11% to $78,247,000 compared to $88,022,000 for 1995. Operating
income was down 26% to $6,101,000 compared with $8,225,000 for the
nine months ended September 30, 1995. Net income decreased by 25%
to $7,060,000 compared to $9,403,000 in the first three quarters of
1995. Earnings per share for the nine months ended September 30,
1996 were $0.86 compared to $1.15 earnings in the prior year period.
The Company reported solid profits for the third quarter although
sales were less than the level achieved for the comparable period in
1995. Although sales and earnings improved from the second quarter
of 1996, as previously announced, it is not expected that the record
sales and earnings achieved in 1995 will be duplicated in 1996. In
this regard, the order backlog for the fourth quarter stood at $31.5
million as at September 30, 1996. This compares to an order backlog
of $31.7 million as at September 30, 1995 (compared to actual fourth
quarter production of $33.2 million) and an order backlog of $28.3
million as at June 30, 1996 (compared to actual third quarter
production of $28.0 million).
"We are still experiencing a softer market than we had earlier
anticipated although our margins are holding up very well,"
commented Mr. M.K. Koo, Chairman of Nam Tai. "We remain confident
that we are in an excellent position to take advantage of new
opportunities to expand our business through the coming year," he
noted.
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INTERNET WEBSITE
Nam Tai is pleased to announce the launch today of its corporate
website which can be accessed at http://www.namtai.com. The Company
recognizes the growing importance of the World Wide Web as a
valuable tool for communicating with those having an interest in the
Company, particularly shareholders. The site is initially targeted
to serve the investor community and contains background information,
financial results and recent press releases, among other topics of
interest.
Nam Tai is a full service contract manufacturer working on behalf of
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 products include
personal organizers, spell checkers, dictionaries and electronic
calculators as well as complex electronic subassemblies and
electronic 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.
This release contains certain forward-looking statements and 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,
business conditions in the electronics industry, reductions or
cancellations in customer requirements, competition and
technological change.
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NAM TAI ELECTRONICS, INC.
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
FOR THE PERIOD ENDED SEPTEMBER 30, 1996 AND 1995
(In Thousands of U.S. Dollars except per share data)
<CAPTION>
Three months ended Nine months ended
September 30 September 30
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Net sales $28,005 $35,514 $78,247 $88,022
Cost of sales 21,661 28,547 61,960 70,812
Gross profit 6,344 6,967 16,287 17,210
------ ------ ------ ------
Costs and expenses
Selling, general and
administrative expenses 3,204 2,774 9,527 8,299
Research and development
expenses 247 457 659 686
3,451 3,231 10,186 8,985
------ ------ ------ ------
Income from operations 2,893 3,736 6,101 8,225
Gain (loss) on disposal of
fixed assets (1) 5 (1) (28)
Other income - net 499 359 1,116 817
Interest expense (15) (96) (34) (154)
Income before income tax and
minority interests 3,376 4,004 7,182 8,860
Provision for income tax
(expense) recovery (58) 633 (122) 543
Net income $ 3,318 $ 4,637 $ 7,060 $ 9,403
Per share amounts (in dollars):
Earnings per share $ 0.40 $ 0.57 $ 0.86 $ 1.15
Weighted average common shares
outstanding and common stock
equivalents 8,179,709 8,221,746 8,201,896 8,154,553
</TABLE>
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NAM TAI ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEET
AS AT SEPTEMBER 30, 1996 AND DECEMBER 31, 1995
(In Thousands of U.S. Dollars)
September 30 December 31
<S> 1996 1995
ASSETS (unaudited)
<C> <C>
Current assets:
Cash and certificates of deposit $ 2,910 $10,927
Term deposits 14,815 6,435
Accounts receivable 15,819 17,699
Inventories 10,087 10,425
Prepaid expenses and deposits 2,747 1,525
Total current assets 46,378 47,011
------ ------
Long term investment 4,050 3,931
Property, plant and equipment, at cost 45,269 35,365
Less: Accumulated depreciation and
amortization (9,615) (7,730)
35,654 27,635
Other assets 821 704
Total assets $86,903 $79,281
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term bank borrowings $ 0 $ 273
Notes payable 6,743 5,320
Accounts payable and accrued expenses 13,220 13,408
Income tax payable 182 107
Total liabilities 20,145 19,108
------ ------
Shareholders' equity:
Common stock 81 80
Additional paid-in capital 28,572 28,182
Stock option grants 371 467
Retained earnings 37,706 31,417
Foreign currency translation adjustment 28 27
Total shareholders' equity 66,758 60,173
------ ------
Total liabilities and shareholders'
equity $86,903 $79,281
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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.) Koo Ming Kown
Koo Ming Kown
Chairman
Date: October 29, 1996
