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 3, 1998
November 16, 1998
November 23, 1998
November 25, 1998
December 2, 1998
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
<PAGE>
NEWS RELEASE
CONTACT: MARK WASLEN
TREASURER
NAM TAI ELECTRONICS, INC.
CORPORATE SERVICES OFFICE:
SUITE 1500-999 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
E-MAIL: [email protected]
NAM TAI ELECTRONICS, INC. ANNOUNCES
3rd -Qtr RELEASE DATE OF NOVEMBER 16, 1998
VANCOUVER, CANADA November 3, 1998 -- Nam Tai Electronics, Inc. ("Nam Tai" or
the "Company") (NASDAQ/NM Symbol: NTAIF and NTAWF) today indicated it will
announce its third quarter results for the period ended September 30, 1998 after
the market close on Monday, November 16, 1998.
The Company will hold an analysts-only conference call on Tuesday, November 17,
at 12:00 noon Eastern Time for analysts to discuss the third quarter results
with management. Analysts who wish to receive the dial-in number for this
conference call are invited to contact Ms. Belinha Sociedad, at 1-800-661-8831
extension 200 before Monday, November 16 at 5:00 p.m. Eastern Time.
Shareholders, investors and other interested individuals are invited to listen
to the live conference call by dialing 1-416-620-8833 just prior to its start
time of 12:00 noon Eastern Time on Tuesday, November 17. Callers will be asked
to register with the conference call operator upon dialing in.
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 the People's Republic
of 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 ("COB"), surface mount technology
("SMT"), tape automated bonding ("TAB"), outer lead bonding ("OLB")
technologies, and anisotropic conductive film ("ACF") heat seal technology. 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, personal
digital assistants ("PDAs"), linguistic products, calculators, integrated
circuit ("IC") or smart card readers (referred to as "IC card readers"). It also
manufactures electronic components and subassemblies for printed circuit boards
("PCBs"). These products include large scale integrated circuits ("LSI") bonded
on PCBs that are used in the manufacture of products such as electronic toys,
and subassemblies for liquid crystal display ("LCD") 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 ("PVC") products and metal parts.
-end-
<PAGE>
NEWS RELEASE
CONTACT: MARK WASLEN
TREASURER
NAM TAI ELECTRONICS, INC.
CORPORATE SERVICES OFFICE:
SUITE 1500-999 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
E-MAIL: [email protected]
NAM TAI ELECTRONICS, INC. ANNOUNCES THIRD QUARTER 1998 RESULTS
EPS OF $0.26 DESPITE SALES DECLINE
VANCOUVER, CANADA November 16, 1998 -- Nam Tai Electronics, Inc. ("Nam Tai" or
the "Company") (NASDAQ/NM Symbols: NTAIF and NTAWF) today announced results for
the third quarter ended September 30, 1998. Net sales were $23.66 million, a
decrease of 24.3% compared to sales of $31.25 million for the third quarter of
1997. Gross profit margin decreased slightly from 24.1% to 23.3% compared to the
1997 third quarter. Operating income decreased 52.6% to $1.84 million ($0.18 per
share) compared to 1997 third quarter operating income of $3.88 million ($0.47
per share). Net income decreased by 70.7% to $2.57 million, compared to $8.75
million, and diluted earnings per share for the third quarter of 1998 were $0.26
compared to $1.06 per share for the prior year period.
"Despite the drop in sales resulting from the Asian economic turmoil, Nam Tai
maintains a satisfactory gross profit margin and remains profitable. Based on
customer feedback for next year's outlook, we expect sales to increase in 1999."
said Nam Tai's Chairman, Mr. Tadao Murakami.
Net sales for the nine months ended September 30, 1998 decreased by 21.4% to
$80.80 million from $102.84 million for the first nine months of 1997. On July
2, 1998, the Company announced it anticipated a drop in sales of approximately
15% - 25% for the full year ended December 31, 1998.
For the first nine months of 1998, operating income decreased by 41.8% to $9.04
million from $15.51 million for the prior year period. Net income decreased by
49.1% to $11.23 million from $22.08 million, and diluted earnings per share were
$1.07 compared to $2.75 for the prior year period.
As at September 30, 1998, the Company continues to maintain a strong financial
position, with $7.74 of cash per share and approximately $13.85 of net book
value per share, based on 9,873,723 shares outstanding. The Company had a cash
to current liabilities ratio of 4.96:1 , a current ratio of 6.62:1, a total
assets to total liabilities ratio of 9.87:1, no long term debt, and
approximately $76 million of cash.
The earnings per share calculations for the third quarter of 1998 take into
account the significant increase in the weighted average common shares
outstanding from 8,167,984 (diluted 8,228,865) in the third quarter of 1997 to
10,035,876 (diluted 10,043,024) in the third quarter of 1998.
<PAGE>
Calculator sales formed 60% of sales in the third quarter of 1998 compared to
47% in the third quarter of 1997. The sales of personal organizers and
linguistic products formed 14% of sales in the third quarter of 1998 compared to
27% in the third quarter of 1997. Sales by region in the third quarter of 1998
versus 1997 were to North America 48% versus 39%, Japan 27% versus 25%, Europe
18% versus 17%, and others 7% versus 19%.
ACQUISITION UPDATE: ALBATRONICS (FAR EAST) COMPANY LIMITED
On September 14, 1998, the Company announced an agreement to acquire a majority
interest of slightly more than 50% of the capital stock of Albatronics (Far
East) Company Limited, for approximately US$10 million. The closing of the
transaction is expected to occur before the end of 1998 subject to certain
conditions including the satisfactory completion of due diligence involving
Albatronics' banking and customer relationships and approval of Albatronics'
independent shareholders. Regulatory approval has been obtained in Hong Kong and
a meeting of Albatronics' independent shareholders to approve the transaction
has been scheduled for Friday, November 27, 1998.
INVESTMENT IN GROUP SENSE (INTERNATIONAL) LIMITED ("GROUP SENSE")
On May 27, 1998 Nam Tai announced that it acquired approximately 20% of the
outstanding shares of Group Sense. Group Sense has not released its operating
results for the six months ended September 30, 1998, therefore such results are
not incorporated into Nam Tai's third quarter net income figure.
STOCK REPURCHASE PROGRAM UPDATE
On July 2, 1998, the Company increased the maximum number of common shares that
may be repurchased under the repurchase program from 1,000,000 to 2,000,000
common shares and extended the repurchase program until January 2, 1999. During
the third quarter, the Company repurchased a total of 346,300 common shares at
an average price of $11.41. For the year to date, the Company repurchased an
aggregate of 1,403,300 common shares at an average price of $15.12, reducing the
number of common shares outstanding to 9,816,723.
DIVIDENDS PAID AND PAYABLE
On October 19, 1998, the Company paid a quarterly dividend of $0.07 per share to
shareholders of record as at September 30, 1998. Payment and record dates for
the third quarter dividend of $0.07 per share will be announced at a later date.
ANALYST CONFERENCE CALL
The Company's analysts-only conference call will be Tuesday, November 17, at
12:00 noon Eastern Time for analysts to discuss third quarter results with
management. Other interested individuals can listen in by dialing 1-416-620-8833
just prior to 12:00 noon Eastern Time, and registering with the conference call
operator.
<PAGE>
Except for the historical information contained herein, matters discussed in
this press release are forward-looking statements involving risks and
uncertainties that could cause actual results to differ materially from those
anticipated in the forward-looking statements. For example, the expected
increase in 1999 sales is contingent upon the accuracy of customers' initial
purchase expectations. There is a risk that continued global economic
uncertainty may cause actual customer orders to differ from their current
expectations. The factors that might cause differences include, but are not
necessarily limited to, those discussed in the Company's reports filed with the
Securities and Exchange Commission from time to time, such as the factors set
forth in Item 1. "Description of Business - Risk Factors" in the Company's
Annual Report on Form 20-F for the year ended December 31, 1997.
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 the People's Republic
of 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 ("COB"), surface mount technology
("SMT"), tape automated bonding ("TAB"), outer lead bonding ("OLB")
technologies, and anisotropic conductive film ("ACF") heat seal technology. 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, personal
digital assistants ("PDAs"), linguistic products, calculators, integrated
circuit ("IC") or smart card readers (referred to as "IC card readers"). It also
manufactures electronic components and subassemblies for printed circuit boards
("PCBs"). These products include large scale integrated circuits ("LSI") bonded
on PCBs that are used in the manufacture of products such as electronic toys,
and subassemblies for liquid crystal display ("LCD") 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 ("PVC") products and metal parts.
<PAGE>
<TABLE>
NAM TAI ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE PERIOD ENDED SEPTEMBER 30, 1998 AND 1997
(In Thousands of U.S. Dollars except share data)
<CAPTION>
Three Months ended Nine Months ended
September 30 September 30
<S> <C> <C> <C> <C>
1998 1997 1998 1997
---- ---- ---- ----
Net sales $ 23,659 $31,24 $ 80,796 $102,841
Cost of sales 18,146 23,709 61,227 75,465
------ ------ ------ --------
Gross profit 5,513 7,536 19,569 27,376
-------- -------- -------- --------
Costs and expenses
Selling, general and
administrative expenses 3,411 3,125 9,695 10,789
Research and development expenses 264 533 838 1,074
------ ------ ------ --------
3,675 3,658 10,533 11,863
-------- -------- -------- --------
Income from operations 1,838 3,878 9,036 15,513
Gain (loss) on disposal of
property, plant and equipment (55) 2,298 775 1,664
Other (expense) income - net (143) 2,174 (274) 4,289
Interest income 962 479 3,311 938
Non-recurring customs assessment 0 0 (1,445) 0
-------- -------- ------- --------
Income before income taxes 2,602 8,829 11,403 22,404
Income tax expense 37 78 171 320
------- ------- ------ ------
Net income $ 2,565 $ 8,751 $ 11,232 $ 22,084
===== ===== ====== ======
Net income per share:
Basic $ 0.26 $ 1.07 $ 1.07 $ 2.77
==== ==== ==== ====
Diluted $ 0.26 $ 1.06 $ 1.07 $ 2.75
==== ==== ==== ====
Weighted average number of shares:
Basic 10,035,876 8,167,984 10,484,685 7,963,372
========== ========= ========== =========
Diluted 10,043,024 8,228,865 10,499,421 8,042,366
========== ========= ========== =========
</TABLE>
<PAGE>
<TABLE>
NAM TAI ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEETS
AS AT SEPTEMBER 30, 1998 AND DECEMBER 31, 1997
(In Thousands of U.S. Dollars)
<CAPTION>
September 30, December 31,
1998 1997
(unaudited)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 76,422 $ 102,411
Accounts receivable, net 16,408 16,985
Inventories 3,930 9,838
Marketable investments 598 0
Prepaid expenses and deposits 4,669 3,788
--------- ---------
Total current assets 102,027 133,022
--------- ---------
Long term investments 0 833
Investment in associated company 15,819 0
------ ---------
15,819 833
-------- --------
Property, plant and equipment, at cost 47,505 44,295
Less: accumulated depreciation and
amortization (14,719) (11,853)
-------- -------
32,786 32,442
-------- --------
Other assets 1,504 1,491
-------- --------
Total assets $ 152,136 $ 167,788
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 14,404 $ 17,551
Notes payable 182 1,814
Dividend payable 675 0
Income taxes payable 157 187
--------- ---------
Total current liabilities 15,418 19,552
-------- --------
Shareholders' equity:
Common shares 99 112
Additional paid-in capital 80,044 80,044
Retained earnings 56,519 68,050
Foreign currency translation adjustment 56 30
--------- ---------
Total shareholders' equity 136,718 148,236
--------- ---------
Total liabilities and shareholders' equity $ 152,136 $ 167,788
</TABLE>
======= =======
- end -
<PAGE>
NEWS RELEASE
CONTACT: MARK WASLEN
TREASURER
NAM TAI ELECTRONICS, INC.
CORPORATE SERVICES OFFICE:
SUITE 1500-999 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
E-MAIL: [email protected]
NAM TAI ELECTRONICS, INC. ANNOUNCES 4th QUARTER DIVIDEND
VANCOUVER, CANADA November 23, 1998 -- Nam Tai Electronics, Inc. ("Nam Tai" or
the "Company") (NASDAQ/NM Symbols: NTAIF and NTAWF) today announced the fourth
quarter 1998 dividend of $0.07 per share will be paid on or before January 21,
1999 to shareholders of record at the close of business on December 31, 1998.
This is the first year that the Company has announced dividends on a quarterly
basis. Previously, the Company paid annual dividends of $0.01, $0.015, $0.03 and
$0.10 per share in 1994, 1995, 1996, and 1997, respectively. The increase in the
annual dividend to $0.28 per share for 1998 ($0.07 per quarter) was previously
announced on March 23, 1998.
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 the People's Republic
of China ("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 ("COB"), surface mount
technology ("SMT"), tape automated bonding ("TAB"), outer lead bonding ("OLB")
technologies, and anisotropic conductive film ("ACF") heat seal technology. 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, personal
digital assistants ("PDA"), linguistic products, calculators, integrated circuit
("IC") or smart card readers (referred to as "IC card readers"). It also
manufactures electronic components and subassemblies for printed circuit boards
("PCBs"). These products include large scale integrated circuits ("LSI") bonded
on PCBs that are used in the manufacture of products such as electronic toys,
and subassemblies for liquid crystal display ("LCD") 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 ("PVC") products and metal parts.
-end-
<PAGE>
NEWS RELEASE
CONTACT: MARK WASLEN
TREASURER
NAM TAI ELECTRONICS, INC.
CORPORATE SERVICES OFFICE:
SUITE 1500-999 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
E-MAIL: [email protected]
NAM TAI ELECTRONICS, INC. ANNOUNCES CORPORATE UPDATE
VANCOUVER, CANADA November 25, 1998 -- Nam Tai Electronics, Inc. ("Nam Tai" or
the "Company") (NASDAQ/NM Symbols: NTAIF and NTAWF) today announced that Group
Sense (International) Limited ("GSL"), a Hong Kong publicly listed company 20%
owned by Nam Tai (Hang Seng company #601), announced its earnings results for
the six months ended September 30, 1998. GSL's revenue for the half year
increased to approximately US$69.4 million, compared with US$67.6 million for
the prior year period. GSL's net income was $4.62 million, compared with US$7.57
million in the same period a year earlier. Nam Tai will include 20% of GSL's net
income since the acquisition on May 27, 1998, adjusted for U.S. GAAP, into its
fourth quarter 1998 net income.
On November 23, 1998, GSL declared an interim dividend of Hong Kong $0.005 per
share. As a result, Nam Tai will receive dividends of approximately US$130,000
in December 1998.
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 the People's Republic
of China ("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 ("COB"), surface mount
technology ("SMT"), tape automated bonding ("TAB"), outer lead bonding ("OLB")
technologies, and anisotropic conductive film ("ACF") heat seal technology. 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, personal
digital assistants ("PDAs"), linguistic products, calculators, integrated
circuit ("IC") or smart card readers (referred to as "IC card readers"). It also
manufactures electronic components and subassemblies for printed circuit boards
("PCBs"). These products include large scale integrated circuits ("LSI") bonded
on PCBs that are used in the manufacture of products such as electronic toys,
and subassemblies for liquid crystal display ("LCD") 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 ("PVC") products and metal parts.
-end-
<PAGE>
NEWS RELEASE
CONTACT: MARK WASLEN
TREASURER
NAM TAI ELECTRONICS, INC.
CORPORATE SERVICES OFFICE:
SUITE 1500-999 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
E-MAIL: [email protected]
NAM TAI ELECTRONICS, INC. COMPLETES ALBATRONICS ACQUISITION
VANCOUVER, CANADA December 2, 1998 -- Nam Tai Electronics, Inc. ("Nam Tai" or
the "Company") (NASDAQ/NM Symbols: NTAIF and NTAWF) today announced the
completion of the acquisition of a majority interest in Albatronics (Far East)
Company Limited ("Albatronics"), a publicly listed Hong Kong company (Stock Code
#987). Under the terms of the subscription agreement first announced on
September 14, 1998, Nam Tai acquires 200,002,000 shares representing a majority
control interest of slightly more than 50% of the enlarged capital stock of
Albatronics, for approximately US$10 million including transaction expenses.
Albatronics directors, including Chairman Mr. K. Wakaki, and CEO Mr. F.
Nakahara, will maintain an aggregate ownership interest of approximately 24.9%.
Nam Tai presently intends to maintain Albatronics' listing on the Hong Kong
Stock Exchange, with at least 25% of the capital stock of Albatronics remaining
in the hands of the public. Today's closing share price of Albatronics is
HK$0.265, giving Albatronics a pre-subscription market capitalization of
approximately US$6.84 million.
In its most recent fiscal year ended March 31,1998, Albatronics reported sales
of US$353 million and net income of US$2.9 million on an audited basis. For the
five months ended August 31, 1998, Albatronics reported sales of US$130 million
and a net loss of US$31 million, including an operating loss of approximately
US$14.2 million and exceptional provisions of US$16.9 million, all on an
unaudited basis. As at August 31, 1998, Albatronics reported unaudited
deficiencies in both working capital and shareholders' equity of approximately
US$56.3 million and US$22.6 million, respectively. Albatronics' working capital
and shareholder's equity will improve by approximately US$8.6 million as a
result of Nam Tai's subscription. Albatronics has also estimated that future
provisions related to the write off of research and development costs and losses
from a potential restructuring of an investment may amount to approximately
US$3.2 million. Albatronics' financial results are presented in accordance with
generally accepted accounting principles in Hong Kong.
"Following our 20% equity investment in Group Sense (International) Limited in
May of this year and consistent with our stated acquisition strategy of seeking
acquisitions of related businesses, Nam Tai is excited to acquire a controlling
interest in Albatronics, a contract manufacturer of consumer electronics in the
OEM business with offices in Hong Kong, manufacturing facilities close by in
China, and a similar corporate culture with mostly Japanese management",
commented Mr. Murakami, Nam Tai's Chairman. "Although Albatronics currently has
a deficiency in its shareholders' equity, Albatronics' great sales [US$350
million], different products lines [audio, video, and telecommunications],
exceptional customer base [including Sony, AIWA, Panasonic, and Fuji Film], Sony
agency relationship, and an exceptional price to sales ratio of 0.05:1, as well
as Albatronics' public listing on the Hong Kong Stock Exchange and its 21.72%
stake in Shanghai Albatronics, a publicly listed company on the Shanghai Stock
Exchange in the Peoples Republic of China, make this acquisition a great
opportunity for Nam Tai to augment its business and immediately and
significantly impact Nam Tai's growth through the benefit of consolidation of
Albatronics sales and potential synergies."
<PAGE>
Nam Tai has indicated that it intends to take reasonable steps to support
Albatronics in sourcing funds as and when required. Such support is dependant on
the results of Nam Tai's comprehensive study, expected to be completed before
the end of March 1999 under the direction of M.K. Koo, Senior Executive Officer,
investigating opportunities for corporate restructuring and streamlining of
overhead expenses within Albatronics. Based upon the conclusion of such study,
it is Nam Tai's present intention to provide support to Albatronics, which may
include providing a shareholder's loan to the Albatronics Group and procuring
Albatronics to raise new equity capital. Over the next six months, Nam Tai
intends to work with the management of Albatronics to formulate future business
plans and management strategy, and if necessary, will restructure Albatronics'
financial and administrative systems with the goal of returning the company to
profitability.
Albatronics possesses a high quality management team of Japanese and Korean
executives. Their experience and relationship with Albatronics' main customers
form an integral part of the operations of Albatronics. It is Nam Tai's current
intention not to make material changes to the existing senior management staff
of Albatronics.
In light of the acquisition of Albatronics, the directors of Nam Tai have
concluded that it would be in the best interests of Nam Tai to use the services
of Deloitte Touche Tohmatsu, the present auditors of Albatronics, as the
auditors of both Nam Tai and Albatronics. This will apply for the completion
audit as of November 30, 1998 and the year-end audit at December 31, 1998. Nam
Tai's previous accounts were audited by PricewaterhouseCoopers.
PricewaterhouseCoopers have informed Nam Tai of its resignation as auditors of
Nam Tai.
Nam Tai intends to change the fiscal year end of Albatronics from March 31 to
December 31. As Albatronics' results will be consolidated with Nam Tai's,
effective December 1, 1998, Albatronics will implement necessary procedures to
ensure its financial statements can be readily converted to generally accepted
accounting principles in the U.S. for U.S. reporting purposes.
Except for the historical information contained herein, matters discussed in
this press release are forward-looking statements involving risks and
uncertainties that could cause actual results to differ materially from those
anticipated in the forward-looking statements. This is particularly true for
statements made relating to the potential results, plans, or expectations of the
acquisition of Albatronics. The acquisition of Albatronics by the Company could
result in charges related to the acquisition, the incurrence of debt and
contingent liabilities and amortization expenses related to goodwill and other
intangible assets, any of which could materially adversely affect the Company's
business, financial condition and results of operations and/or the price of the
Company's Common Stock. Realizing the goal of achieving Albatronics' recovery
will be dependent on, among other things, Albatronics' ability to reduce its
operating expenses effectively, the continuing commitment of Albatronics' senior
management, the continued market acceptance of Albatronics' products and
manufacturing services, and its continuing strong relationships with Sony and
Albatronics' other major OEM customers. Given these and other factors and Nam
Tai's lack of acquisition experience, there can be no assurance that Nam Tai
will successfully assist Albatronics to recovery or that Nam Tai itself may not
suffer a materially adverse effect to its results of operations and financial
condition from this acquisition. Other factors that might cause differences
include, but are not necessarily limited to, those discussed in the Company's
reports filed with the Securities and Exchange Commission from time to time,
such as the factors set forth in Item 1. "Description of Business - Risk
Factors" in the Company's Annual Report on Form 20-F for the year ended December
31, 1997, and in particular the section headed Risks From Possible Acquisitions
on page 9 of such report.
Nam Tai Electronics, Inc. is a consumer electronics design and manufacturing
service provider to some of the world's leading original equipment
manufacturers. Products manufactured by Nam Tai include personal organizers,
personal digital assistants, linguistic products, calculators, smart card
readers, portable CD players, digital cameras, audio amplifiers, personal
communication products and various components. Nam Tai serves the electronics
manufacturing industry through wholly owned subsidiaries and majority ownership
of Albatronics (Far East) Company Limited. Further information is available from
Nam Tai's web site at www.namtai.com.
-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.
By:/s.d./ Edward K.W. Chan
Edward K.W. Chan, Chief Financial Officer
