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 August 9, 1999
August 2, 1999
July 26, 1999
July 23, 1999
July 19, 1999
July 6, 1999
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: WENDY WISEMAN
INVESTOR RELATIONS ASSOCIATE
NAM TAI ELECTRONICS, INC.
REPRESENTED BY: PAN PACIFIC I.R. LTD.
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
E-MAIL: [email protected]
WEB SITE: www.namtai.com
NAM TAI ELECTRONICS, INC.
Q2 SALES UP 37%, EPS UP 89% TO $0.51
VANCOUVER, CANADA August 9, 1999 -- Nam Tai Electronics, Inc. ("Nam Tai" or the
"Company") (NASDAQ/NM Symbol: NTAI and NTAIW) today announced results for the
second quarter ended June 30, 1999. Net sales for the second quarter of 1999
were $42.1 million, an increase of 37% compared to $30.9 million for the second
quarter of 1998. Operating income increased 57% to $3.8 million ($0.41 per
share) compared to 1998 second quarter operating income of $2.4 million ($0.24
per share). Non-operating income was $1.1 million, up from $438,000 in 1998. Net
income was $4.7 million, an increase of 67% over $2.8 million in the second
quarter of 1998. Basic and diluted earnings per share for the second quarter of
1999 were up 89% to $0.51 versus $0.27 for the second quarter of 1998.
"I am pleased that the strong rebound in sales and earnings that we predicted
are now beginning to be reflected in our second quarter results", commented Nam
Tai's Chairman, Mr. Murakami. "The diversification of our product mix as a
consequence of increases in shipments of LCD modules for cellular phones,
personal organisers, and linguistic products is also satisfying. We continue to
foresee a strong move upward in sales and operating profits throughout the
balance of 1999 as we exploit our recently announced expansion plans and
capitalise on our business initiatives started in the first half of 1999."
Net sales for the six months ended June 30, 1999 increased by 21% to $ 69.2
million from $57.1 million for the first six months of 1998. Operating income
for the first six months of 1999 increased by 9.6% to $6.3 million ($0.67 per
share) from $5.8 million ($0.54 per share) for the prior year period.
Non-operating income decreased by $1.6 million to $1.5 million ($0.15 per share)
from $3.1 million ($0.28 per share). As a result, net income for the six month
period was down 14% to $7.5 million from $8.7 million for 1998. Basic and
diluted earnings per share for the first six months of 1999 were $0.79 compared
to $0.81 for the prior year period.
The Company continues to maintain a strong financial position, ending the second
quarter of 1999 with $8.16 of cash per share and approximately $13.85 of net
book value per share, based on 9,250,323 shares outstanding as at June 30, 1999.
The Company, as at June 30, 1999, had a cash to current liabilities ratio of
1.9:1, a current ratio of 2.9:1, a total assets to total liabilities ratio of
4.2:1, no long term debt, and approximately $75.5 million of cash, $72 million
of which is in short term deposits in U.S. currency.
The Company's gross profit margin was 20.5% for the second quarter 1999 versus
24.2% in the prior year. "The 1999 second quarter margin of 20.5% is down from
the 22.0% margin in the first quarter, as a result of a more balanced product
line mix, but continues to remain above industry averages and slightly above our
target for the year", commented Mr. Murakami. "We also witnessed improved
operating margins (9.0% vs. 7.9%) and net income margins (11.1% vs. 9.1%)
compared to the same period in 1998."
Sales by product line in the second quarter 1999 versus 1998 were: Calculators
(40% vs. 70%), Subassemblies and Components (25% vs. 8%), and Personal
Organizers and Linguistic Products (23% vs. 12%). Sales by region in the second
quarter of 1999 versus 1998 were to North America (30% vs. 53%), Japan (13% vs.
20%), Europe (17% vs. 22%), Hong Kong and others (40% vs. 5%).
"As a result of strategic business decisions, Nam Tai today is more than just a
great calculator company", commented Mr. Murakami. "We have become more
diversified, both geographically and by product line and are confident that we
will see strong sales growth in the second half of 1999, particularly from sales
of LCD modules for cellular phones, personal organizers and linguistic products,
and telecommunication products".
In advance of today's positive results, Nam Tai recently released a series of
optimistic news releases detailing the following exciting business developments:
* The establishment of a new Telecommunication division which is now selling
900MHz phones to private label customers in Europe.
* Success in attracting a new, well-known, ODM customer in Japan for
electronic dictionaries. The Company expects sales in this market to reach
1.4 million units in 1999, up by 50%.
* The introduction of new Chip on Glass production, an advanced technology
which is used in the manufacturing of LCD modules for cellular phones. To
satisfy expected demand, the Company expects its monthly production
capacity will increase to 1 million units by September 1999, up 100%.
* An expanded relationship with Legend, China's largest PC manufacturer, to
include joint research and development of new products. Nam Tai in January
was appointed by Legend to manufacture a palm-sized PC with pre-installed
Microsoft Windows CE (Chinese version) operating system software.
INVESTMENT IN GROUP SENSE (INTERNATIONAL) LIMITED ("GROUP SENSE")
On July 9, 1999 Group Sense, a 20% owned affiliate, released operating results
including the six month period ended March 31, 1999. Nam Tai's non-operating
income for the quarter ended June 30, 1999 includes $260,000, representing the
Company's share of Group Sense's net income for the six-month period ending
March 31, 1999, accounted for under the equity method.
DIVIDENDS
On July 16, 1999 the Company paid a quarterly dividend of $0.08 per share to
shareholders of record on June 30, 1999. The record date for the third quarter
dividend of $0.08 per share is September 30, 1999 and the payment date is on or
before October 16, 1999.
SECOND QUARTER RESULTS ANALYST CONFERENCE CALL
The Company will hold an analysts-only conference call today, Monday, August 9,
1999, at 12:00 noon Eastern Time for analysts to discuss the second quarter
results with management. Shareholders, investors and other interested
individuals are invited to listen to the live conference call by dialing
(612)-332-0819 just prior to its start time of 12:00 noon Eastern Time on
Monday, August 9, 1999. Callers will be asked to register with the conference
call operator.
ANALYST TRIP TO HONG KONG AND CHINA VISITING THE FACILITIES OF NAM TAI
ELECTRONICS, INC., DESWELL INDUSTRIES INC. AND BONSO ELECTRONIC INTERNATIONAL
INC.
The Company will be hosting a trip to Hong Kong and Shenzhen China to visit the
facilities of Nam Tai, Deswell Industries Inc. (NASDAQ/NM Symbol: DSWL), and
Bonso Electronic International Inc. (NASDAQ/NM Symbol: BNSO and BNSOW). The trip
is scheduled for August 15th to 20th, 1999. Interested analysts and investors
are encouraged to contact the Company for further details about attending the
trip.
Nam Tai Electronics, Inc. is a consumer electronics design and manufacturing
service provider to some of the world's leading original equipment
manufacturers. Nam Tai manufactures telecommunication products, palm-sized PC's,
personal digital assistants, linguistic products, calculators, smart card
readers and various components which are used in telecommunication products,
electronic toys, and household appliances. The Company utilizes advanced
production technologies such as chip on board ("COB"), chip on glass ("COG"),
surface mount technology ("SMT"), tape automated bonding ("TAB") and outer lead
bonding ("OLB") technologies and anistropic conductive film ("ACF") heat seal
technology. Further information is available from Nam Tai's web site at
www.namtai.com.
Except for the historical information contained herein, matters discussed in
this press release are forward-looking statements. For example, the Company's
expectation regarding future sales and profit growth are forward looking
statements the result of which are uncertain and dependant upon many factors
including end-user demand, fluctuations in sales, changes in product mix,
competitive pressures, technological change, and changes in general economic
conditions. Other factors that might cause differences in this and other forward
looking statements include 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, 1998.
-more-
<PAGE>
NAM TAI ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
FOR THE PERIODS ENDED JUNE 30, 1999 AND 1998
(In Thousands of U.S. Dollars except share data)
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30 June 30
---------------- ----------------- ----------------- ----------------
1999 1998 1999 1998
---------------- ----------------- ----------------- ----------------
<S> <C> <C> <C> <C>
Net sales $ 42,136 $ 30,857 $ 69,211 $ 57,137
Cost of sales 33,513 23,392 54,618 43,081
---------------- ----------------- ----------------- ----------------
Gross profit 8,623 7,465 14,593 14,056
---------------- ----------------- ----------------- ----------------
Costs and expenses
Selling, general and administrative expenses 4,224 3,295 7,221 6,284
Research and development expenses 589 293 1,068 574
Non-recurring expense - 1,445 - 1,445
---------------- ----------------- ----------------- ----------------
4,813 5,033 8,289 8,303
---------------- ----------------- ----------------- ----------------
Income from operations 3,810 2,432 6,304 5,753
Gain on disposal of property,
plant and equipment 300 490 294 830
Other income (loss) - net (261) (1,129) (674) (131)
Interest income 779 1,077 1,587 2,349
---------------- ----------------- ----------------- ----------------
Income before income taxes 4,628 2,870 7,511 8,801
Income tax expense 205 68 280 134
---------------- ----------------- ----------------- ----------------
4,423 2,802 7,231 8,667
Share of results of associated company 260 - 260 -
---------------- ----------------- ----------------- ----------------
Net income $ 4,683 $ 2,802 $ 7,491 $ 8,667
================ ================= ================= ================
Net income per share
Basic $ 0.51 $ 0.27 $ 0.79 $ 0.81
================ ================= ================= ================
Diluted $ 0.51 $ 0.27 $ 0.79 $ 0.81
================ ================= ================= ================
Weighted average number of shares ('000')
Basic 9,252 10,312 9,454 10,712
Diluted 9,252 10,332 9,465 10,731
</TABLE>
<PAGE>
NAM TAI ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEETS
AS AT JUNE 30, 1999 AND DECEMBER 31, 1998
(In Thousands of U.S. Dollars)
<TABLE>
Unaudited Audited
June 30 December 31
1999 1998
<CAPTION> ------------------ -----------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 75,471 $ 71,215
Accounts receivable, net 25,397 16,138
Inventories 7,492 4,355
Marketable investments 72 513
Prepaid expenses and deposits 6,803 4,794
------------------ -----------------
Total current assets 115,235 97,015
Investment in unconsolidated subsidiary 1 1
Investment in associated company 16,805 16,223
Property, plant and equipment, at cost 52,873 48,117
Less: accumulated depreciation and amortisation (17,794) (15,672)
------------------ -----------------
35,079 32,445
Other assets 1,396 1,544
------------------ -----------------
Total assets $ 168,516 $ 147,228
================== =================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable $ 7,617 $ 329
Accounts payable and accrued expenses 31,686 18,377
Dividend payable 740 665
Income tax payable 277 105
------------------ -----------------
Total current liabilities 40,320 19,476
Deferred tax liabilities 57 56
------------------ -----------------
Shareholders' equity:
Common shares 93 98
Additional paid-in capital 80,241 80,044
Retained earnings 47,761 47,509
Accumulated other comprehensive income (note 1) 44 45
------------------ -----------------
Total shareholders' equity 128,139 127,696
------------------ -----------------
Total liabilities and shareholders' equity $ 168,516 $ 147,228
================== =================
</TABLE>
<PAGE>
NAM TAI ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
FOR THE PERIODS ENDED JUNE 30, 1999 AND 1998
(In Thousands of U.S. Dollars)
<TABLE>
Three months ended Six months ended
June 30 June 30
1999 1998 1999 1998
<CAPTION>
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
CASH FLOWS FROM OPERATIONS
Net income $ 4,683 $ 2,802 $ 7,491 $ 8,667
Add/(deduct) adjustments to net income:
Depreciation and amortisation 1,294 1,073 2,535 2,059
Stock option compensation expense - - - 75
(Gain) loss on disposal of fixed assets (300) (490) (294) (830)
Equity in income of affiliated company (260) - (260) -
Loss on disposal of subsidiary 290 - 290 -
(Gain) on disposal of Deswell shares - (333) - (1,299)
Increase in deferred taxes 1 - 1 -
Changes in current assets and liabilities:
Marketable securities 198 493 441 (674)
Accounts receivable (4,056) (1,763) (9,236) (4,611)
Inventories (1,004) 2,607 (3,137) 4,086
Prepayments and deposits (2,379) 1,048 (2,009) (675)
Notes payable 5,789 (44) 7,288 (1,000)
Accounts payable 8,330 2,735 13,309 325
Income taxes payable 200 77 172 (67)
--------------- --------------- --------------- ---------------
8,103 5,403 9,100 (2,611)
--------------- --------------- --------------- ---------------
Net cash flows from operations $ 12,786 $ 8,205 $ 16,591 $ 6,056
--------------- --------------- --------------- ---------------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds on disposal of Deswell Shares $ - $ 587 $ - $ 2,132
Proceeds on disposal of land in Hong Kong 318 519 318 817
Proceeds on disposal of fixed assets 2 7 2 377
Additions to fixed assets (4,570) (2,623) (5,206) (3,059)
Other assets 80 (21) 74 (21)
Investment in associated company (322) (16,279) (322) (16,279)
--------------- --------------- --------------- ---------------
Net cash flow from investing $ (4,492) $ (17,810) $ (5,134) $ (16,033)
--------------- --------------- --------------- ---------------
CASH FLOWS FROM FINANCING ACTIVITIES
Share buy-back $ (341) $ (12,718) $ (4,211) $ (16,688)
Redemption of shares - - (1,550) -
Dividend paid (743) (707) (1,431) (707)
--------------- --------------- --------------- ---------------
Net cash flow from financing $ (1,084) $ (13,425) $ (7,192) $ (17,395)
--------------- --------------- --------------- ---------------
Foreign currency translation adjustments (4) 8 (9) 8
Net change in cash and cash equivalents 7,206 (23,022) 4,256 (27,364)
--------------- --------------- --------------- ---------------
Cash and cash equivalents, beginning of period 68,265 98,069 71,215 102,411
--------------- --------------- --------------- ---------------
Cash and cash equivalents, end of period $ 75,471 $ 75,047 $ 75,471 $ 75,047
=============== =============== =============== ===============
</TABLE>
<PAGE>
NAM TAI ELECTRONICS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
For THE PERIODS ended june 30, 1999 AND 1998
(In Thousands of U.S. Dollars)
1. Accumulated other comprehensive income represents foreign currency
translation adjustments. The comprehensive income of the Company was $7,490
and $8,675 for the six months ended June 30, 1999 and June 30, 1998,
respectively.
2. Certain comparative items have been reclassified to agree to the
presentation in the 1998 audited financial statements.
3. Business segment information - The Company operates principally in only one
segment of the consumer electronic products industry. A summary of the net
sales, income (loss) from operations and identifiable assets by geographic
areas is as follows:
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30 June 30
1999 1998 1999 1998
------------------- ------------------ ------------------ -----------------
<S> <C> <C> <C> <C>
Net sales from operations within:
- Hong Kong: $ 41,408 $ 30,584 $ 67,907 $ 56,596
Unaffiliated customers
- PRC, excluding Hong Kong:
Unaffiliated customers 728 273 1,304 541
Intersegment sales 38,444 28,733 63,029 53,134
- Intersegment eliminations (38,444) (28,733) (63,029) (53,134)
------------------- ------------------ ------------------ -----------------
Total net sales $ 42,136 $ 30,857 $ 69,211 $ 57,137
=================== ================== ================== =================
Income (loss) from operations within:
- PRC, excluding Hong Kong $ 2,662 $ 2,027 $ 4,747 $ 5,030
- Hong Kong 2,535 1,070 3,980 2,534
- North America (514) (295) (1,236) (1,103)
------------------- ------------------ ------------------ -----------------
Total net income $ 4,683 $ 2,802 $ 7,491 $ 8,667
=================== ================== ================== =================
As at As at
June 30, 1999 Dec 31, 1998
------------------- ------------------
Identifiable assets by geographic area:
- PRC, excluding Hong Kong $ 48,156 $ 42,690
- Hong Kong 120,360 85,419
- North America - 19,119
------------------- ------------------
Total assets $ 168,516 $ 147,228
=================== ==================
</TABLE>
-end-
<PAGE>
NEWS RELEASE
CONTACT: WENDY WISEMAN
INVESTOR RELATIONS ASSOCIATE
NAM TAI ELECTRONICS, INC.
REPRESENTED BY: PAN PACIFIC I.R. LTD.
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
E-MAIL: [email protected]
WEB SITE: www.namtai.com
NAM TAI ELECTRONICS, INC. ANNOUNCES POSITIVE BUSINESS DEVELOPMENTS
VANCOUVER, CANADA August 2, 1999 -- Nam Tai Electronics, Inc. ("Nam Tai" or the
"Company") (NASDAQ/NM Symbol: NTAI and NTAIW) today announced the following
business developments:
NAM TAI'S EXPANDS BUSINESS WITH LEGEND
Following Nam Tai's appointment in January to manufacture Legend's Tian Ji 1000
Palm-Sized PC with pre-installed Microsoft Windows CE (Chinese version)
operating system software, the two companies recently signed a contract
expanding the relationship to include joint research and development of new
products. Services provided by Nam Tai to Legend now include active
co-ordination and participation in product design and development, material
procurement as requested, post-assembly quality assurance, and assembly of an
increased range of portable personal electronic management devices including
Personal Digital Assistants (PDAs) and Palm-sized PCs (PPC's).
"We are very excited about our close relationship with Legend, China's largest
PC manufacturer, as it strives to extend its leading position in desktop PCs to
the non-PC area. Our success in developing and manufacturing products for Legend
is a milestone for Nam Tai, marking our successful entry as an OEM/ODM
manufacturer into China's large and growing consumer electronics market."
commented Mr. Murakami, Chairman of the Nam Tai Group.
NEW CUSTOMER INCREASES ELECTRONIC DICTIONARY SALES
The electronic dictionary market in Japan in 1999 has witnessed rapid expansion
compared to 1998. According to analyst forecasts demand for electronic
dictionaries in Japan is expected to increase by 40% in 1999 to over 2.8 million
units.
Following Nam Tai's success in attracting a new, well-known, customer in Japan
the Company expects its Japanese sales of electronic dictionaries to reach
approximately 1.4 million units, an increase of 50%. A similar increase is
expected for year 2000. Nam Tai attributes it success in this market to its full
line of electronic dictionaries tailored to consumers of different ages and
genders.
Nam Tai's expansion into Original Design Manufacturing of Electronic
Dictionaries was a key factor is securing these increased orders. The Company is
now able to support customers with product design, including hardware and
software development, in addition to its traditional OEM business.
PRODUCTION OF LCD MODULES UP SHARPLY
Nam Tai announced that it expects to see its production of LCD modules for
various electronic products increase significantly to 15 million units in 1999,
compared to 5.5 million units in the prior year, with sales of LCD Modules for
cellular phones being the most notable contributor to the increase. To satisfy
expected demand, Nam Tai will increase its monthly production capacity of
cellular phone LCD modules to 1 million units by September 1999 from its current
capacity of 500,000 per month. Year 2000 worldwide market of LCD modules for
cellular phones is estimated to be 250 million pieces.
Nam Tai believes that its success in securing increased LCD module orders arises
from its continuing efforts to invest in the most advanced production equipment
including fine pitch heat seal, COB, COG, SMT, TAB, OLB technologies and ACF
heat seal technology.
NAM TAI WINS TEXAS INSTRUMENT SUPPLIER EXCELLENCE AWARD FOR FOURTH CONSECUTIVE
YEAR
Nam Tai has been awarded the Texas Instruments 1998 Supplier Excellence Award.
This is the fourth year in a row for Nam Tai to receive this prestigious award
recognizing outstanding performance and continuous improvement. The recipients
of this award represent less than one-half of one percent of the TI supplier
base.
The winners are an elite group of companies showing tremendous dedication and
commitment to total quality in supplying products and services. Recipients are
chosen for excellence in combined areas of Cost, Environmental Responsiveness,
Technology Responsiveness, Assurance of Supply, and Quality. To qualify for the
award the first time requires very high scores in each of the categories. To
receive the award in subsequent years requires continuous improvement over the
high scores required for the first year.
"The Company is committed to the principle of providing total quality and will
strive to meet the requirements to receive this award for a fifth year. We also
extend the same commitment of total quality to all our OEM and ODM customers,"
commented Mr. Murakami, Chairman of Nam Tai. "Nam Tai believes that by
co-ordinating with our OEM and ODM customers to bring high quality, reasonably
priced products to the end user we secure the position of preferred supplier."
SECOND QUARTER RESULTS RELEASE DATE
Nam Tai's second quarter results for the period ended June 30, 1999 will be
released before the market opens on Monday, August 9, 1999.
The Company will hold an analysts-only conference call on Monday, August 9, 1999
at 12:00 noon Eastern Time for analysts to discuss the second quarter results
with management. Analysts who wish to receive the dial-in number for this
conference call are invited to contact Investor Relations at 1-800-661-8831 no
later than Friday, August 6, 1999 at 6:00 p.m. Eastern Time.
Shareholders, investors and other interested individuals are invited to listen
to the live conference call by dialing (612)-332-0819 just prior to its start
time of 12:00 noon Eastern Time on Monday, August 9, 1999. Callers will be asked
to register with the conference call operator.
ANALYST TRIP TO HONG KONG AND CHINA VISITING THE FACILITIES OF NAM TAI
ELECTRONICS, INC., DESWELL INDUSTRIES INC. AND BONSO ELECTRONIC INTERNATIONAL
INC.
The Company will be hosting a trip to Hong Kong and Shenzhen China to visit the
facilities of Nam Tai, Deswell Industries Inc. (NASDAQ/NM Symbol: DSWL), and
Bonso Electronic International Inc. (NASDAQ/NM Symbol: BNSO and BNSOW). The trip
is scheduled for August 15th to 20th , 1999. Interested analysts and investors
are encouraged to contact the Company for further details about attending the
trip.
Nam Tai Electronics, Inc. is a consumer electronics design and manufacturing
service provider to some of the world's leading original equipment
manufacturers. Nam Tai manufactures telecommunication products, palm-sized PC's,
personal digital assistants, linguistic products, calculators, smart card
readers and various components which are used in telecommunication products,
electronic toys, and household appliances. The Company utilizes advanced
production technologies such as chip on board ("COB"), chip on glass ("COG"),
surface mount technology ("SMT"), tape automated bonding ("TAB") and outer lead
bonding ("OLB") technologies and anistropic conductive film ("ACF") heat seal
technology.Further information is available from Nam Tai's web site at
www.namtai.com.
Except for the historical information contained herein, matters discussed in
this press release are forward-looking statements. For example, the Company's
expectations regarding sales of Electronic Dictionaries and LCD Modules are
forward looking statements the results of which are uncertain and dependant upon
many factors including possible changes in customer order expectations,
production difficulties, increased competition, or changes in the general
economic climate. Other factors that might cause differences in these and other
forward looking statements include 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, 1998.
-end-
<PAGE>
NEWS RELEASE
CONTACT: WENDY WISEMAN
INVESTOR RELATIONS ASSOCIATE
NAM TAI ELECTRONICS, INC.
REPRESENTED BY: PAN PACIFIC I.R. LTD.
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
E-MAIL: [email protected]
WEB SITE: www.namtai.com
NAM TAI ELECTRONICS, INC. ACQUIRES NEW TELECOM DIVISION
VANCOUVER, CANADA July 26, 1999 -- Nam Tai Electronics, Inc. ("Nam Tai" or the
"Company") (NASDAQ/NM Symbol: NTAI and NTAIW) today announced the establishment
of a new telecommunications division, emerging from a successful acquisition in
Korea. Set up as Nam Tai Telecom (Hong Kong) Co. Ltd. ("NT Telecom"), this new
subsidiary is based in Hong Kong with a branch office in Korea and related
research and development teams in Japan and North America. NT Telecom develops,
manufactures, and sells high frequency wireless telecommunication products.
Through this acquisition, Nam Tai immediately gains established customer
relationships, existing sales orders, and most importantly the necessary
licences to sell its 900 MHz cordless telephones in the European market. Under
the current European regulatory system, licensing approval must be sought and
obtained from each individual country for permission to produce and sell
cordless telecommunication products, a lead time often taking 15 months or more.
With this acquisition Nam Tai bypasses this hurdle and has recently delivered
its first shipment of 900 MHz cordless telephones to Europe to be sold under the
customers' private label. From the acquisition Nam Tai also inherits a complete
team of excellent Korean managers with strength and experience in research and
development, production, and marketing.
"Nam Tai is determined to be a major player in the world-wide telecommunications
industry in the coming years", explained Mr. Murakami, Nam Tai's Chairman. "As a
result of this acquisition, we are now producing 900 MHz cordless telephones
from our existing manufacturing facilities located in Shenzhen, China. We expect
to have capacity in place to produce between 4 and 5 million units in year 2000
for the world-wide market."
The new telecommunication division consists of a fully equipped manufacturing
base located within Nam Tai's existing manufacturing complex, sales and
marketing operations in Hong Kong, and three strong research and development
teams already established in Korea, Japan and North America. To remain on the
leading edge of technology the research and development teams are continuously
pursuing and researching new high technology telecommunication products and
manufacturing expertise. They are also responsible for developing new products
including digitally enhanced cordless telephones ("DECT"), family radio systems
("FRS") and 2.4 GHz high frequency communication products. The new products are
scheduled for commercial production within 2 years.
Mr. S. Shim, formerly an Executive Director for over 20 years with Maxon
Electronics Co., Ltd. ("Maxon"), was appointed as Managing Director of NT
Telecom. Maxon is the world's second largest manufacturer of cordless telephones
and is a leading player in the world-wide telecommunication industry.
Mr. D.G. Hahn has been appointed as the Executive Director of NT Telecom, and
will be responsible for two sales and marketing teams headed by Mr. J.S. Kim
(Europe) and Mr. S.J. Lim (North America). Mr. Hahn brings 20 years of
telecommunication sales and marketing experience including 15 years as an
Executive Director with Maxon where he worked closely with Mr. Shim.
"Nam Tai's marketing strategy is to offer high quality value added telephones
with additional functions and enhanced design at a lower price than competitors"
commented Mr. Murakami. "The telecommunication industry is experiencing rapid
growth and intense competition. Nam Tai's COG technology that is used to produce
advanced LCD modules, a critical part in high-end telecommunication products,
allows the company to produce telecommunication products with a comparative cost
advantage. By continually improving product design and production efficiency,
and investing in advanced technologies such as COG, we expect to remain
competitive while maintaining steady profit margins."
SECOND QUARTER RESULTS RELEASE DATE
Nam Tai's second quarter results for the period ended June 30, 1999 will be
released before the market opens on Monday, August 9, 1999.
The Company will hold an analysts-only conference call on Monday, August 9, 1999
at 12:00 noon Eastern Time for analysts to discuss the second quarter results
with management. Analysts who wish to receive the dial-in number for this
conference call are invited to contact Investor Relations at 1-800-661-8831 no
later than Friday, August 6, 1999 at 6:00 p.m. Eastern Time.
Shareholders, investors and other interested individuals are invited to listen
to the live conference call by dialing (612)-332-0819 just prior to its start
time of 12:00 noon Eastern Time on Monday, August 9, 1999. Callers will be asked
to register with the conference call operator.
ANALYST TRIP TO HONG KONG AND CHINA VISITING THE FACILITIES OF NAM TAI
ELECTRONICS, INC., DESWELL INDUSTRIES INC. AND BONSO ELECTRONIC INTERNATIONAL
INC.
The Company will be hosting a trip to Hong Kong and Shenzhen China to visit the
facilities of Nam Tai, Deswell Industries Inc.(NASDAQ/NM Symbol: DSWL), and
Bonso Electronic International Inc. (NASDAQ/NM Symbol: BNSO and BNSOW). The trip
is scheduled for August 15th to 20th, 1999. Interested analysts and investors
are encouraged to contact the Company for further details about attending the
trip.
Nam Tai Electronics, Inc. is a consumer electronics design and manufacturing
service provider to some of the world's leading original equipment
manufacturers. Nam Tai manufactures telecommunication products palm-sized PC's,
personal digital assistants, linguistic products, calculators, telecommunication
products, smart card readers and various components which are used in,
electronic toys, and household appliances. The Company utilizes advanced
production technologies such as chip on board ("COB"), chip on glass ("COG"),
surface mount technology ("SMT"), tape automated bonding ("TAB") and outer lead
bonding ("OLB") technologies and anistropic conductive film ("ACF") heat seal
technology. Further information is available from Nam Tai's web site at
www.namtai.com.
Except for the historical information contained herein, matters discussed in
this press release are forward-looking statements. For example, the Company's
expectations regarding the future prospects and opportunities of its
telecommunication division including units and products produced are forward
looking statements the results of which are uncertain and dependant upon many
factors including reliance of key management people, end-user demand,
competitive pressures, potential delays in development times, technological
change, and changes in licensing requirements. Other factors that might cause
differences in this and other forward looking statements include 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, 1998.
-end-
<PAGE>
NEWS RELEASE
CONTACT: WENDY WISEMAN
INVESTOR RELATIONS ASSOCIATE
NAM TAI ELECTRONICS, INC.
REPRESENTED BY: PAN PACIFIC I.R. LTD.
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
E-MAIL: [email protected]
WEB SITE: www.namtai.com
NAM TAI ELECTRONICS, INC. CORPORATE UPDATE
VANCOUVER, CANADA July 23, 1999 -- Nam Tai Electronics, Inc. ("Nam Tai" or the
"Company") (NASDAQ/NM Symbol: NTAI and NTAIW) today provided a general corporate
update.
DIVESTITURE OF CANADIAN SUBSIDIARY
Nam Tai announced the sale of Nam Tai Electronics (Canada) Ltd. ("NT Canada") to
its management staff. This decision was made following the relocation of Mr.
Koo, Senior Executive Officer, from Vancouver to Hong Kong to provide strategic
support for Nam Tai's expansion of new and existing business in the Far East. NT
Canada provided investor relations and regulatory compliance services to the
parent Company from its office in Vancouver, British Columbia, Canada. NT
Canada, now no longer a subsidiary of Nam Tai, will be renamed Pan Pacific I.R.
Ltd. by its new owners, and will continue to provide similar services to Nam Tai
and other companies.
SHENZHEN NAMTEK SHOWS PROFIT AND EXPANSION
Shenzhen Namtek Co., Ltd. ("Namtek"), a Nam Tai subsidiary established in
December 1995, announced its first year of profitable operations. (Namtek broke
even in fiscal 1997, and experienced losses in the first two start-up years.)
Located in Shekou China, Namtek employs approximately 22 software engineers and
provides the facilities and expertise to assist in new product research and
development, offering its customers program design for microprocessors, enhanced
software design and development services, and strengthening the Company's ODM
capabilities. Since its establishment Namtek has built a reputation for on time
delivery of quality software with a price advantage relative to competitors
based in Japan and Taiwan. As a result of an increasing number of customers and
orders, Namtek will move in August to a new larger 4,300 sqft. office, fully
equipped with auditorium meeting rooms, an advanced PDS telecommunication
system, and satellite communication systems and increase the number of software
engineers to 35 before the end of 1999.
ZASTRON'S SALES TRIPLE
Zastron Plastic & Metal Products (Shenzhen) Ltd. ("Zastron"), a Nam Tai
subsidiary established in 1992, announced that sales have almost tripled
(excluding sales to the Nam Tai Group) compared to the same period last year and
profits have shown similar improvements. Zastron, located in the same campus as
Nam Tai's main factory, is principally engaged in silk screening metal and PVC
products, many of which are used in products manufactured by the Company's
manufacturing subsidiary. Zastron also provides silk screening of products for
other unrelated companies. With the assistance of Nam Tai, Zastron has
successfully expanded its customer base beyond Nam Tai demonstrating its
viability as an independent contributor to Nam Tai's results.
SECOND QUARTER RESULTS RELEASE DATE
Nam Tai announced it will report its second quarter results for the period ended
June 30, 1999 before the market opens on Monday, August 9, 1999.
The Company will hold an analysts-only conference call on Monday, August 9, 1999
at 12:00 noon Eastern Time for analysts to discuss the second quarter results
with management. Analysts who wish to receive the dial-in number for this
conference call are invited to contact Investor Relations at 1-800-661-8831 no
later than Friday, August 6, 1999 at 6:00 p.m. Eastern Time.
Shareholders, investors and other interested individuals are invited to listen
to the live conference call by dialing (612)-332-0819 just prior to its start
time of 12:00 noon Eastern Time on Monday, August 9, 1999. Callers will be asked
to register with the conference call operator.
ANALYST TRIP TO HONG KONG AND CHINA VISITING THE FACILITIES OF NAM TAI
ELECTRONICS, INC., DESWELL INDUSTRIES INC. AND BONSO ELECTRONIC INTERNATIONAL
INC.
The Company will be hosting a trip to Hong Kong and Shenzhen China to visit the
facilities of Nam Tai, Deswell Industries Inc.(NASDAQ/NM Symbol: DSWL), and
Bonso Electronic International Inc. (NASDAQ/NM Symbol: BNSO and BNSOW). The trip
is scheduled for August 15th to 20th, 1999. Interested analysts and investors
are encouraged to contact the Company for further details about attending the
trip.
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 palm-sized PC's,
personal organizers, personal digital assistants, linguistic products,
calculators, smart card readers and various components which are used in
telecommunication products, electronic toys, and household appliances. The
Company utilizes advanced production technologies such as chip on board ("COB"),
chip on glass ("COG"), surface mount technology ("SMT"), tape automated bonding
("TAB") and outer lead bonding ("OLB") technologies and anistropic conductive
film ("ACF") heat seal technology. Further information is available from Nam
Tai's web site at www.namtai.com.
-end-
<PAGE>
NEWS RELEASE
CONTACT: WENDY WISEMAN
PUBLIC RELATIONS SECRETARY
NAM TAI ELECTRONICS, INC.
CORPORATE 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
E-MAIL: [email protected]
WEB SITE: www.namtai.com
NAM TAI ELECTRONICS, INC. ANNOUNCES LAND PURCHASE AND FACTORY EXPANSION
VANCOUVER, CANADA July 19, 1999 -- Nam Tai Electronics, Inc. ("Nam Tai" or the
"Company") (NASDAQ/NM Symbol: NTAI and NTAIW) today announced that it has
purchased a 280,000 square foot (6.5 acres) vacant lot bordering its current
manufacturing complex located in Baoan County, Shenzhen, China. It is zoned
industrial and is planned to be used for the construction of up to an additional
200,000 square feet of manufacturing, office or dormitory facilities. The land
will be reserved for future expansion in a new project for a high technology
product. Further details will be released once plans are finalised, tentatively
expected before the end of summer 2000.
"As a result of the Asian economic downturn, we were able to purchase this last
remaining parcel of industrial land in the area at a significant cost saving.
The land cost of $4.22 per sqft. compares favourably to the $6.69 per sqft. we
paid in 1993 for our existing site" commented Mr. Murakami. "The proximity of
the additional land to the existing manufacturing complex will help lower
transportation costs, result in infrastructure savings, and allow for better
overall management and control of the planned new project."
FACTORY EXPANSION
"In addition to the new land purchased, Nam Tai's existing manufacturing campus
contains vacant land reserved and prepared for the construction of another new
160,000 sqft. manufacturing facility ("Phase II") that is scheduled for
completion before the end of 2000. With the existing factory approaching full
capacity, we have budgeted $15 million for construction of Phase II. Once
operational Nam Tai will boast 470,000 sqft. of manufacturing space and its
production capacity will increase approximately 30% by at the end of 2001. The
number of employees will increase to 3,500 from 2,500 now", said Mr. Murakami.
"Our $15 million budget for the Phase II factory project consists of $5 million
for plant construction and $10 million for new equipment, machinery, and set up
costs. The project will be financed internally from operating cash flows."
CORRECTION OF SHORT POSITION
The Company has received confirmation from NASDAQ that the short position of the
Company's common shares as at June 15, 1999 was 48,477, and not 2,549,777 as
previously reported.
ANALYST TRIP TO HONG KONG AND CHINA VISITING THE FACILITIES OF NAM TAI
ELECTRONICS, INC., DESWELL INDUSTRIES INC. AND BONSO ELECTRONIC INTERNATIONAL
INC.
The Company will be hosting a trip to Hong Kong and Shenzhen China to visit the
facilities of Nam Tai, Deswell Industries Inc.(NASDAQ/NM Symbol: DSWL), and
Bonso Electronic International Inc. (NASDAQ/NM Symbol: BNSO and BNSOW). The trip
is schedule for August 15th to 20th, 1999. Interested analysts and investors are
encouraged to contact the Company for further details about attending the trip.
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 palm-sized PC's,
personal organizers, personal digital assistants, linguistic products,
calculators, smart card readers and various components which are used in
telecommunication products, electronic toys, and household appliances. The
Company utilizes advanced production technologies such as chip on board ("COB"),
chip on glass ("COG"), surface mount technology ("SMT"), tape automated bonding
("TAB") and outer lead bonding ("OLB") technologies and anistropic conductive
film ("ACF") heat seal technology. Further information is available from Nam
Tai's web site at www.namtai.com.
Except for the historical information contained herein, matters discussed in
this press release are forward-looking statements. For example, the Company's
expectation regarding future expansion of facilities, the future project for a
high technology product, and reaching full capacity are forward looking
statements the results of which are uncertain and dependant upon many factors.
For example, construction of the new factory may be cancelled or delayed by
changes in customer orders, construction problems, or changes in general
economic conditions. Other factors that might cause differences in these and
other forward looking statements include 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, 1998.
-end-
<PAGE>
NEWS RELEASE
CONTACT: WENDY WISEMAN
PUBLIC RELATIONS SECRETARY
NAM TAI ELECTRONICS, INC.
CORPORATE 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
E-MAIL: [email protected]
WEB SITE: www.namtai.com
NAM TAI ELECTRONICS, INC. ENHANCES PRODUCTION CAPACITY FOR NEW PRODUCTS AND
INCREASING ORDERS
VANCOUVER, CANADA July 6, 1999 -- Nam Tai Electronics, Inc. ("Nam Tai" or the
"Company") (NASDAQ/NM Symbol: NTAI and NTAIW) today announced that, as a result
of a strong market, increasing customer orders and demand for new hi-tech
products, it has installed Chip on Glass ("COG") production technology at its
manufacturing facility. Chip on Glass is an advanced technology that connects
integrated circuit chips directly to liquid crystal display panels without the
need of wire bonding. The technology is being used by the Company to produce
advanced LCD modules for inclusion in high-end electronic products such as
portable phones, personal digital assistants, etc. The Company has already
commenced deliveries to satisfy new customer orders utilising this equipment.
ADVANTAGES OF COG TECHNOLOGY INCLUDE:
* lightweight and compact production capabilities
* lower production costs
* increased quality
* reduced power consumption
Production on Nam Tai's first 2 COG lines (20 sets of machines) commenced in
June with a production capacity of 500,000 pieces per month. During the balance
of 1999 the installation of an additional 2 COG lines (20 more sets of machines)
will bring capacity to 1 million pieces per month.
Nam Tai is also enhancing its production capabilities during 1999 with the
addition of 10 new SMT lines (30 sets of machines including 2 high-speed lines)
to augment its existing 7 lines (21 sets of machines). As well, 8 sets of fine
pitch COB machines and one ACF machine are being added.
In a further development, Nam Tai is adding during this year 5,500 square feet
of clean room production area to its present 12,400 square feet of clean room.
The new area, a class 5000 clean room, is essential to avoid particle
contamination during production. COB, ACF and COG machines will all be located
in the clean rooms.
Nam Tai is estimating new capital investment in the equipment and improvements
described above to approximate $15 million in 1999. Further investments are
planned and will be announced as they are introduced.
"The Company is excited with these new additions which significantly enhance our
competitive position and broaden the range of products we are manufacturing",
commented Mr. Murakami. "Analysts and investors wishing to tour our facilities
and see these enhancements are welcome, and invited to join our Analyst Trip to
Hong Kong and China scheduled for the middle of August by contacting the Company
at 1-800-661-8831 for further details."
RELATED DEVELOPMENTS
In order to meet the demands of increased business activity and the
consequential new equipment and improvement investments, Mr. M.K. Koo, Senior
Executive Officer, Corporate Strategy, Finance and Administration, has relocated
to the Company's Hong Kong offices.
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 palm-sized PC's,
personal organizers, personal digital assistants, linguistic products,
calculators, smart card readers and various components which are used in
telecommunication products, electronic toys, and household appliances. The
Company utilizes advanced production technologies such as chip on board ("COB"),
chip on glass ("COG"), surface mount technology ("SMT"), tape automated bonding
("TAB") and outer lead bonding ("OLB") technologies and anistropic conductive
film ("ACF") heat seal technology. Further information is available from Nam
Tai's web site at www.namtai.com.
Except for the historical information contained herein, matters discussed in
this press release are forward-looking statements. For example, the Company's
expectation regarding production on the new COG lines are forward looking
statements the result of which are uncertain and dependant upon successful
introduction and operation of technology new to the Company. Other factors that
might cause differences in this and other forward looking statements include
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, 1998.
-end-
<PAGE>
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.
/s/ Tadao Murakami
Chairman
Date: August 16, 1999
HONG KONG
