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 March 27, 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
(Address of principal executive offices)
NAM TAI ELECTRONICS, INC. CONTACT: WENDY L. WISEMAN
SUITE 530 - 999 WEST HASTINGS STREET P.R. SECRETARY
VANCOUVER, B.C. CANADA V6C 2W2 NEWS RELEASE
TEL: (604) 669-7800 FAX: (604) 669-7816
TOLL FREE TEL & FAX: 1-800-661-8831
INTERNET WEBSITE: http://www.namtai.com
E-MAIL: [email protected]
NAM TAI ELECTRONICS, INC. ANNOUNCES
AUDITED RESULTS FOR THE YEAR ENDED DECEMBER 31, 1996
VANCOUVER, CANADA March 27, 1997 -- Nam Tai Electronics, Inc. ("Nam
Tai" or the "Company") (NASDAQ/NMS Symbol: NTAIF, TSE Symbol: NMT)
today announced audited results for the year ended December 31,
1996. As previously announced on January 22, 1997 when the Company
reported unaudited results, net sales for the year ended December
31, 1996 were $108,234,000 compared to $121,240,000 for the year
ended December 31, 1995. A reduction in orders from certain OEM
customers caused the decline in sales. Management believes that
lower than expected year-end 1995 sales by certain of its OEM
customers caused them to curtail orders for production in 1996.
The Company's gross profit decreased to $22,185,000 for the year
ended December 31, 1996 from $23,152,000 for 1995. The principal
reason for the decrease in gross profit was the decrease in sales.
When the Company previously announced its results, it reported that
gross profit for the year ended December 31, 1996 was $22,710,000.
The principal reason for the adjustment from previously announced
results was the increase in cost of sales resulting from a net
write-off of $415,000 of inventory and a net increase in
depreciation expense of $166,000. In regard to the inventory write-
off, during the course of the audit of its financial statements for
the year ended December 31, 1996, the Company confirmed that certain
components included in its raw material inventory were not likely to
be used in connection with future production and, due to the passage
of time, could not be charged to customers who would have otherwise
been responsible for the reimbursement of cost. After consulting
with its auditors, the Company elected to write-off the cost of such
inventory.
Despite the reduction in sales and the above additions to costs of
sales, Nam Tai's gross profit margin improved to 20.5% in 1996 from
19.1% in 1995. This was principally the result of lower component
costs and efficiencies implemented to reduce manufacturing costs.
Lower component costs were attributable to the general decline in
the cost of certain components as well as the decline in the value
of the Japanese yen relative to the U.S. dollar. The latter
benefited the Company as it purchases a substantial volume of
components from Japanese companies which are paid in yen.
The Company also reported in its audited results for the year ended
December 31, 1996 a loss of $123,000 on disposal of fixed assets as
compared to no gain or loss for the year ended December 31, 1995.
The Company had reported a loss of $3,000 on disposal of fixed
assets for the year ended December 31, 1996 in its previously
announced results. The 1996 adjustment to the loss on disposal of
fixed assets relates to leasehold improvements made by Nam Tai to
its former executive offices in Hong Kong under a lease that was
prematurely terminated. As a result of zoning regulations that
limited the use that the Company could make of the space comprising
its Hong Kong head office, Nam Tai was required to terminate its
existing lease and relocate its principal executive and Hong Kong
marketing offices before the expiration of the lease term.
Accordingly, in February 1997, the Company leased new premises for
its principal executive offices in Hong Kong. The Company recorded
a charge of $120,000 for the year ended December 31, 1996 regarding
the leasehold improvements Nam Tai had made in the former executive
offices.
The effect of the adjustments to cost of sales and loss on disposal
of fixed assets on net income and earnings per share from previously
announced results was to decrease net income and earnings per share
for the year ended December 31, 1996 to $9,416,000 and $1.16,
respectively, from $10,120,000 and $1.24, respectively.
This release is expressed in U.S. dollars. Nam Tai is an
independent provider of high quality manufacturing services to
original equipment manufacturers ("OEMs") in the consumer
electronics industry. All of the Company's manufacturing operations
are based in China. Nam Tai assists OEMs in the design and
development of products and furnishes full turnkey manufacturing
services to its OEM customers utilizing advanced processes such as
chip on board, multichip modulators, surface mount technology, tape
automated bonding and outer lead bonding technologies. The Company
provides hardware and software design, plastic molding, component
purchasing, assembly into finished products or electronic
subassemblies, post-assembly testing and shipping. The Company
manufactures a broad line of finished products for its OEM
customers, including personal organizers, linguistic products,
calculators, integrated circuit or smart card readers. It also
manufactures electronic components and subassemblies for printed
circuit boards ("PCBs"). These products include large scale
integrated circuits bonded on PCBs that are used in the manufacture
of products such as electronic toys, and subassemblies for liquid
crystal display modules that are in turn used in the manufacture of
communications, camera and computer products. In addition, Nam Tai
provides OEMs with silk screening services for plastic parts,
polyvinyl chloride products and metal parts.
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: April 8, 1997
