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 January 29, 1997
NAM TAI ELECTRONICS, INC.
(Registrant's name in English)
Unit 513-520 No. 1 Hung To Road
Kwun Tong, Kowloon, Hong Kong
(Address of principal executive offices)<PAGE>
NAM TAI ELECTRONICS, INC. - NEWS RELEASE
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
INTERNET WEBSITE: http://www.namtai.com
CONTACT: WENDY L. WISEMAN
P.R. SECRETARY
NAM TAI ELECTRONICS, INC. ANNOUNCES
FOURTH QUARTER AND YEAR END 1996 UNAUDITED RESULTS
FOURTH QUARTER EARNINGS INCREASE 52%, 1996 SALES DOWN 11%
VANCOUVER, CANADA January 22, 1997 -- Nam Tai Electronics, Inc.
("Nam Tai" or the "Company") (NASDAQ/NMS Symbol: NTAIF, TSE Symbol:
NMT) today announced unaudited results for the fourth quarter and
year ended December 31, 1996. Net sales for the fourth quarter were
$30.0 million, a decrease of 10% compared to sales of $33.2 million
in the fourth quarter of 1995. Operating income increased 19% to
$3.0 million compared to 1995 fourth quarter operating income of
$2.5 million. Net income increased 52% to $3.1 million compared to
$2.0 million in the fourth quarter of 1995. Earnings per share were
$0.38 compared to $0.25 in the prior year period.
Net sales for the year ended December 31, 1996 decreased by 11% to
$108.2 million compared to $121.2 million for 1995. Operating
income was down 15% to $9.1 million compared with $10.8 million for
the twelve months ended December 31, 1995. Net income decreased by
11% to $10.1 million compared to $11.4 million for the twelve months
ended December 31, 1995. Earnings per share for the year ended
December 31, 1996 were $1.24 compared to $1.40 in the prior year
period.
"We are pleased to report a strengthening of our sales performance
in the fourth quarter relative to the second and third quarters,"
commented Mr. M.K. Koo, Chairman of the Company. "We are also
pleased to note the significant increase in our earnings for the
fourth quarter relative to the prior year, which contributed to
income before tax totalling $10.3 million for 1996 versus $10.8
million for 1995." The financial position of the Company remains
solid with $25.6 million of working capital and no long term debt.
Order backlog at December 31, 1996 stood at $28.5 million compared
to $24.8 million at December 31, 1995.
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, business conditions in the
electronics industry, reductions or cancellations in customer
requirements, competition and technological change.
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.
<TABLE>
NAM TAI ELECTRONICS, INC.
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
FOR THE PERIOD ENDED DECEMBER 31, 1996 AND 1995
(In Thousands of U.S. Dollars except per share data)
<CAPTION>
Three months ended Twelve months ended
December 31 December 31
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Net sales $ 29,987 $ 33,218 $108,234 $121,240
Cost of sales 23,564 27,276 85,524 98,088
Gross profit 6,423 5,942 22,710 23,152
------ -------- -------- --------
Costs and expenses
Selling, general and
administrative expenses 3,103 3,142 12,630 11,441
Research and development expenses 304 259 963 945
3,407 3,401 13,593 12,386
-------- -------- -------- --------
Income from operations 3,016 2,541 9,117 10,766
Gain (loss) on disposal of fixed assets (2) 28 (3) -
Other income (loss) - net 137 (592) 1,253 225
Interest expense (55) (7) (89) (161)
Income before income tax and
minority interests 3,096 1,970 10,278 10,830
Provision for income tax (expense)
recovery (36) 46 (158) 589
Net income $ 3,060 $ 2,016 $10,120 $11,419
Earnings per share $ 0.38 $ 0.25 $ 1.24 $ 1.40
Weighted average common shares
outstanding and common stock
equivalents 7,963,808 8,222,879 8,142,131 8,171,750
</TABLE>
<TABLE>
NAM TAI ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEET
AS AT DECEMBER 31, 1996 AND DECEMBER 31, 1995
(In Thousands of U.S. Dollars)
<CAPTION>
December 31 December 31
1996 1995
ASSETS (unaudited)
<S> <C> <C>
Current assets:
Cash and certificates of deposit $ 1,761 $ 10,927
Term deposits 15,980 6,435
Accounts receivable 16,118 17,699
Inventories 10,926 10,425
Prepaid expenses and deposits 2,300 1,525
Total current assets 47,085 47,011
-------- --------
Long term investment 4,050 3,931
Property, plant and equipment, at
cost - net 46,981 35,365
Less: accumulated depreciation and
amortization (10,202) (7,730)
36,779 27,635
-------- --------
Other assets 1,245 704
Total assets $89,159 $ 79,281
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term bank borrowings $ 0 $ 273
Notes payable 5,186 5,320
Accounts payable and accrued expenses 16,248 13,408
Income tax payable 31 107
Total liabilities 21,465 19,108
-------- --------
Shareholders' equity:
Common stock 78 80
Additional paid-in capital 28,572 28,182
Stock option grants 305 467
Retained earnings 38,711 31,417
Foreign currency translation adjustment 28 27
Total shareholders' equity 67,694 60,173
Total liabilities and shareholders'
equity $ 89,159 $ 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.
For and on behalf of
Nam Tai Electronics, Inc.
by
(S.d.) Ronald G. Erdman
Ronald G. Erdman
Chief Financial Officer
Date: January 29, 1997
