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 November 7, 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
NAM TAI ELECTRONICS, INC.
NEWS RELEASE
CONTACT: WENDY L. WISEMAN
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
INTERNET WEBSITE: http://www.namtai.com
NAM TAI ELECTRONICS, INC. ANNOUNCES
3rd-Qtr EPS UP 165% TO $1.06 vs. $0.40
VANCOUVER, CANADA November 7, 1997 -- Nam Tai Electronics, Inc. ("Nam Tai" or
the "Company") (NASDAQ/NMS Symbol: NTAIF) today announced results for the
third quarter ended September 30, 1997. Net sales increased 12% to
$31,245,000 compared to sales of $28,005,000 in the third quarter ended
September 30, 1996. Operating income for the third quarter 1997 increased by
34% to $3,878,000 compared to 1996 third quarter operating income of
$2,893,000. Net income for the period increased by 164% to $8,751,000
compared to $3,318,000 in the third quarter of 1996. Earnings per share for
the third quarter of 1997 increased by 165% to $1.06 per share from $0.40 per
share for the prior year period. Extraordinary income contributed $5,318,235
or $0.65 to net income and income per share, respectively.
Net sales for the nine months ended September 30, 1997 increased by 31% to
$102,841,000 from $78,247,000 for the first nine months of 1996. Operating
income for the first nine months of 1997 increased by 154% to $15,513,000
from $6,101,000 for the prior year period. Net income for the period
increased by 213% to $22,084,000 from $7,060,000 for 1996. Earnings per
share for the first nine months of 1997 increased by 219% to $2.75 from $0.86
per share for the prior year period.
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.
-more-
Page 2 of 3
NAM TAI ELECTRONICS, INC.
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
FOR THE PERIOD ENDED SEPTEMBER 30, 1997 AND 1996
(In Thousands of U.S. Dollars except per share data)
Three months ended Nine months ended
September 30 September 30
1997 1996 1997 1996
Net sales $31,245 $28,005 $102,841 $78,247
Cost of sales 23,709 21,661 75,465 61,960
Gross profit 7,536 6,344 27,376 16,287
------ ------ ------ ------
Costs and expenses
Selling, general and
administrative expenses 3,125 3,204 10,789 9,527
Research and development
expenses 533 247 1,074 659
3,658 3,451 11,863 10,186
------ ------ ------ ------
Income from operations 3,878 2,893 15,513 6,101
Gain (loss) on disposal of
fixed assets 2,298 (1) 1,664 (1)
Other income - net 2,654 499 5,265 1,116
Interest expense (1) (15) (38) (34)
Income before income tax 8,829 3,376 22,404 7,182
Provision for income tax recovery
(expense) (78) (58) (320) (122)
Net income $ 8,751 $ 3,318 $22,084 $ 7,060
Per share amounts (in dollars):
Earnings per share $ 1.06 $ 0.40 $ 2.75 $ 0.86
Weighted average common shares
outstanding and common stock
equivalents 8,228,865 8,179,709 8,042,366 8,201,896
Page 3 of 3
NAM TAI ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEET
AS AT SEPTEMBER 30, 1997 AND DECEMBER 31, 1996
(In Thousands of U.S. Dollars)
September 30 December 31
1997 1996
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $ 4,287 $ 1,761
Term deposits 41,693 15,980
Accounts receivable 18,370 16,589
Inventories 8,945 10,511
Prepaid expenses and deposits 3,804 1,768
Total current assets 77,099 46,609
------ ------
Long term investment 833 4,050
Property, plant and equipment, at cost 43,067 46,751
Less: Accumulated depreciation and
amortization (11,778) (10,264)
------- -------
31,289 36,487
Other assets 1,302 1,245
Total assets $110,523 $88,391
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable 2,051 5,186
Accounts payable and accrued expenses 16,635 16,184
Income tax payable 342 31
Total liabilities 19,028 21,401
------ ------
Shareholders' equity:
Common stock 82 78
Additional paid-in capital 32,094 28,572
Stock option grants 0 305
Retained earnings 59,295 38,007
Foreign currency translation adjustment 24 28
Total shareholders' equity 91,495 66,990
------ ------
Total liabilities and
shareholders' equity $110,523 $88,391
-end-
The Registrant hereby incorporates this Report on Form 6-K into
its Registration Statement on Form F-3 (Registration No. 333-
36135).
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.
______________________
M.K. Koo, Chairman
Date: November 7, 1997
