SHENZHEN, China, Feb. 8 /PRNewswire-FirstCall/ -- Nam Tai
Electronics, Inc. ("Nam Tai" or the "Company") (NYSE:NTE) today
announced its unaudited results for the fourth quarter and year
ended December 31, 2009. KEY HIGHLIGHTS (In thousands of US
Dollars, except per share data, percentages and as otherwise
stated) Quarterly Results Year Results -------------------------
-------------------------- Q4 2009 Q4 2008 YoY(%) 12M 2009 12M 2008
YoY(%) ------- ------- ------ -------- -------- ------ Net sales
$93,735 $169,021 (44.5) $408,137 $622,852 (34.5) Gross profit
$10,162 $14,648 (30.6) $40,320 $70,678 (43.0) % of sales 10.8% 8.7%
- 9.9% 11.3% - Operating income (loss) $692 $(14,455) * $388 $6,386
(93.9) % of sales 0.7% (8.6%) - 0.1% 1.0% - per share (diluted)
$0.02 $(0.32) * $0.01 $0.14 (92.9) Net income (loss) attributable
to Nam Tai shareholders(a) $416 $(14,447) * $1,652 $30,635 (94.6) %
of sales 0.4% (8.5%) - 0.4% 4.9% - Basic earnings (loss) per share
$0.01 $(0.32) * $0.04 $0.68 (94.1) Diluted earnings (loss) per
share $0.01 $(0.32) * $0.04 $0.68 (94.1) Weighted average number of
shares ('000) Basic 44,804 44,804 - 44,804 44,804 - Diluted 44,820
44,804 - 44,810 44,806 - Note: (a) For the twelve months ended
December 31, 2008, net income included $20.2 million of gain on
disposal of J.I.C. Technology Company Limited ("JIC"). * Percentage
change is not presented if either the latest period or prior period
contains a loss. In addition to disclosing results determined in
accordance with accounting principles generally accepted in the
United States ("US GAAP") as set forth in the table above,
management utilizes a measure of operating income / (loss), net
income / (loss) and earnings (loss) per share on a non-GAAP basis
that excludes certain income and expenses to better assess
operating performance. Those non-GAAP financial measures exclude
certain items, such as share-based compensation expenses and
infrequent or unusual items such as gain on sale of shares of a
subsidiary, employee severance benefits in PRC subsidiaries and
other income recovered from Tele-Art Inc. (in liquidation). By
disclosing the non-GAAP information, management intends to provide
investors with additional information to analyze the Company's
performance, core results and underlying trends. Non-GAAP
information is not determined using US GAAP; therefore, the
information is not necessarily comparable to other companies and
should not be used to compare the Company's performance over
different periods. Non-GAAP information should not be viewed as a
substitute for, or superior to, net income/(loss) or other
financial data prepared in accordance with US GAAP as measures of
our operating results or liquidity. Users of this financial
information should consider the types of events and transactions
for which adjustments have been made. See the table below for a
reconciliation of non-GAAP amounts to amounts reported under US
GAAP. GAAP TO NON-GAAP RECONCILIATION (In millions of US Dollars,
except for per share (diluted) and numbers of shares) Three months
ended December 31, ---------------------------------------------
2009 2008 --------------------- ---------------------- per share
per share millions (diluted) millions (diluted) -------- ----------
-------- --------- GAAP Operating Income (Loss) $0.7 $0.02 $(14.4)
$(0.32) --------------------- ---- ----- ------ ------ Add back: --
Share-based compensation expenses(a) - - - -
------------------------- --- --- --- --- -- Professional expenses
in relation to privatization of NTEEP - - - -
----------------------- --- --- --- --- -- Employee severance
benefits in PRC subsidiaries (b) - - 0.6 0.01
------------------------ --- --- --- ---- -- Impairment loss on
goodwill - - 17.3 0.39 -------------------- --- --- ---- ----
Non-GAAP Operating Income $0.7 $0.02 $3.5 $0.08
------------------------- ==== ===== ==== ===== GAAP Net Income
(Loss) attributable to Nam Tai shareholders $0.4 $0.01 $(14.4)
$(0.32) ------------------------ ---- ----- ------ ------ Add
back/(Less): -- Share-based compensation expenses(a) - - - -
------------------------- --- --- --- --- -- Professional expenses
in relation to privatization of NTEEP - - - -
----------------------- --- --- --- --- -- Employee severance
benefits in PRC subsidiaries (after deducting tax and sharing with
noncontrolling interest)(b) - - 0.6 0.01 -------------------------
--- --- --- ---- -- Impairment loss on goodwill - - 17.3 0.39
-------------------- --- --- ---- ---- -- Gain on sale of
subsidiary shares(c) - - - - ---------------------- --- --- --- ---
-- Other income recovered from Tele-Art Inc. (in liquidation)(d) -
- - - ------------------------- --- --- --- --- Non-GAAP Net Income
attributable to Nam Tai shareholders $0.4 $0.01 $3.5 $0.08
------------------------ ==== ===== ==== ===== Weighted average
number of shares - diluted ('000) 44,820 44,804
----------------------- ------ ------ Year ended December 31,
--------------------------------------------- 2009 2008
--------------------- ---------------------- per share per share
millions (diluted) millions (diluted) -------- ---------- --------
--------- GAAP Operating Income (Loss) $0.4 $0.01 $6.4 $0.14
--------------------- ---- ----- ---- ----- Add back: --
Share-based compensation expenses(a) 0.1 - 1.2 0.03
------------------------- --- --- --- ---- -- Professional expenses
in relation to privatization of NTEEP 0.9 0.02 - -
----------------------- --- ---- --- --- -- Employee severance
benefits in PRC subsidiaries (b) 5.1 0.11 0.6 0.01
------------------------ --- ---- --- ---- -- Impairment loss on
goodwill - - 17.3 0.39 -------------------- --- --- ---- ----
Non-GAAP Operating Income $6.5 $0.14 $25.5 $0.57
------------------------- ==== ===== ===== ===== GAAP Net Income
(Loss) attributable to Nam Tai shareholders $1.7 $0.04 $30.6 $0.68
------------------------ ---- ----- ----- ----- Add back/(Less): --
Share-based compensation expenses(a) 0.1 - 1.2 0.03
------------------------- --- --- --- ---- -- Professional expenses
in relation to privatization of NTEEP 0.9 0.02 - -
----------------------- --- ---- --- --- -- Employee severance
benefits in PRC subsidiaries (after deducting tax and sharing with
noncontrolling interest)(b) 3.2 0.07 0.6 0.01
------------------------- --- ---- --- ---- -- Impairment loss on
goodwill - - 17.3 0.39 -------------------- --- --- ---- ---- --
Gain on sale of subsidiary shares(c) - - (20.2) (0.45)
---------------------- --- --- ----- ----- -- Other income
recovered from Tele-Art Inc. (in liquidation)(d) - - (2.9) (0.07)
------------------------- --- --- ---- ----- Non-GAAP Net Income
attributable to Nam Tai shareholders $5.9 $0.13 $26.6 $0.59
------------------------ ==== ===== ===== ===== Weighted average
number of shares - diluted ('000) 44,810 44,806
----------------------- ------ ------ Note: (a) The share-based
compensation expenses included approximately $0.1 million
attributable to options to purchase 75,000 shares granted in the
second quarter of 2009 ($0.2 million for year 2008 to directors in
accordance with the Company's practice of making annual option
grants to its directors upon their election for the ensuing year
and approximately $1.0 million principally attributable to options
to purchase approximately 20 million shares granted by the
Company's former Hong Kong Stock Exchange- listed subsidiary, Nam
Tai Electronic & Electrical Products Limited ("NTEEP")(Stock
Code : 2633)), to certain of its executive directors and employees
in the first quarter of 2008. In December 2008, NTEEP repurchased
and cancelled all of its outstanding 17,440,000 options from the
option holders at a total consideration of approximately $42,000.
Accordingly, Nam Tai recorded no share- based compensation expense
(relating to NTEEP) during the three months ended December 31,
2009. (b) The expense represents employee benefit and severance
arrangements in accordance with the PRC statutory severance
requirements. (c) On March 4, 2008, Nam Tai completed the sale of
its entire equity interest of Namtek business in JIC, a Hong Kong
Stock Exchange listed subsidiary (Stock Code: 00987), to an
independent third party. In this transaction, Nam Tai sold
572,594,978 shares of JIC, representing 74.99% of its outstanding
share capital for cash of approximately $51 million, which resulted
in a gain on disposal of approximately $20 million. (d) A total
amount of approximately $2.9 million of other income in the
Company's financial statements for the second quarter of 2008. This
amount represents Nam Tai's share of proceeds realized from the
disposal for the account of Tele-Art, Inc.'s liquidator of 477,319
Nam Tai shares owned by Tele-Art, Inc. (in liquidation)("Tele-Art")
and was paid in settlement of amounts previously funded by Nam Tai
in connection with Tele-Art's liquidation and in partial
satisfaction of judgments in favor of Nam Tai against Tele-Art.
SUPPLEMENTARY INFORMATION (UNAUDITED) IN THE FOURTH QUARTER OF 2009
1. Quarterly Sales Breakdown (In thousands of US Dollars, except
percentage information) YoY(%) YoY(%) (Quarterly Quarter 2009 2008
(Quarterly) accumulated) ------- ---- ---- -----------
------------- 1st Quarter 102,150 147,129 (30.6) (30.6) 2nd Quarter
101,836 146,168 (30.3) (30.5) 3rd Quarter 110,416 160,534 (31.2)
(30.7) 4th Quarter 93,735 169,021 (44.5) (34.5) Total 408,137
622,852 2. Breakdown of Net Sales by Product Segment (as a
percentage of Total Net Sales) 2009 2008 ---------------
--------------- Segments Q4(%) YTD(%) Q4(%) YTD(%) -------- -----
------ ----- ------ Consumer Electronic and Communication Products
("CECP") 27 28 37 44 Telecommunication Component Assembly ("TCA")
54 55 54 44 Liquid Crystal Display Products ("LCDP") 19 17 9 12 100
100 100 100 3. Key Highlights of Financial Position As at December
31, 2009 2008 ---- ---- Cash on hand (a) $195.6 million $237.0
million Ratio of cash (a) to current liabilities 2.56 1.66 Current
ratio 3.59 2.67 Ratio of total assets to total liabilities 5.21
3.58 Return on Nam Tai shareholders' equity 0.5% 9.4% Ratio of
total liabilities to total equity((b)) 0.24 0.39 Debtors turnover
52 days 61 days Inventory turnover 16 days 18 days Average payable
period 59 days 65 days Note: (a) Includes cash equivalents. (b)
Ratio for 2008 has been restated in order to conform this year's
basis of calculation. OPERATIONS REVIEW The business environment in
Nam Tai's product sectors remains difficult and extremely
competitive. Sales in the fourth quarter of 2009 were $93.7
million, a decrease of 44.5% as compared to sales of $169.0 million
in the same quarter of 2008. Sales in our CECP segment and TCA
segment dropped by 59.3% and 45.0% respectively and LCDP segment
increased by 17.9%, during the fourth quarter of 2009, as compared
to same period in 2008. Sales in our CECP segment declined
significantly mainly because of the continuing effect from the
global economic downturn. The weak demand in the market for our
consumer products adversely affected sales of all of our end-user
products such as mobile phone accessories, which principally
represented sales of our headsets containing Bluetooth®(1) wireless
technology, educational products, optical products and home
entertainment devices. Sales in our TCA segment also declined as a
consequence of the decline in sales of TCA. The Company's gross
profit margin in the fourth quarter of 2009 was 10.8% as compared
to 8.7% in the fourth quarter of 2008. Gross profit in the fourth
quarter of 2009 was $10.2 million, a decrease of 30.6%, as compared
to $14.6 million in the fourth quarter of 2008, primarily resulting
from the decrease in sales. Net income attributable to Nam Tai
shareholders in the fourth quarter of 2009 was $0.4 million, as
compared to net loss of $14.5 million in same quarter of 2008,
mainly due to impairment loss on goodwill $17.3 million in 2008.
Basic and diluted earnings per share in the fourth quarter of 2009
were $0.01 per share, as compared to basic and diluted loss per
share of $0.32 in the fourth quarter of 2008. For the twelve months
ended December 31, 2009, our net sales were $408.1 million, a
decrease of 34.5% as compared to $622.9 million in the same period
last year. The Company's gross profit margin was 9.9% as compared
to 11.3% in the same period of 2008. Gross profit was $40.3
million, a decrease of 43.0%, as compared to $70.7 million in the
same period last year. We reported an operating income for the
twelve months of 2009 of $0.4 million, compared to operating income
of $6.4 million in the same period last year. Our net income
attributable to Nam Tai shareholders for the twelve months ended
December 31, 2009 was $1.7 million, or $0.04 per share (diluted),
as compared to net income attributable to Nam Tai shareholders of
$30.6 million, or $0.68 per share (diluted), in the same period
last year. (1) The Bluetooth® word mark and logo are owned by the
Bluetooth SIG, Inc. and any use of such mark by Nam Tai is under
license. Non-GAAP Financial Information Non-GAAP operating income
for the fourth quarter of 2009 was $0.7 million, or $0.02 per share
(diluted), compared to non-GAAP operating income of $3.5 million,
or $0.08 per share (diluted), in the fourth quarter of 2008.
Non-GAAP net income attributable to Nam Tai shareholders for the
fourth quarter of 2009 decreased to $0.4 million or $0.01 per share
(diluted), compared to income of $3.5 million, or $0.08 per share
(diluted), in the fourth quarter of 2008. Liquidity and Financial
Resources Despite current economic conditions, Nam Tai's financial
position as at December 31, 2009 remained strong with $195.6
million cash on hand. Net cash provided by operating activities in
the fourth quarter was $15.6 million. During the fourth quarter,
the Company made capital expenditure of $7.9 million. Nam Tai's
cash on hand has been invested in term deposits with HSBC and China
Construction Bank. The Company continues to exercise rigorous
corporate governance and control policies and is not involved in
trading of any debt securities or financial derivative products.
EXPANSION PROJECTS During the fourth quarter of 2009, we expended
approximately $8 million mainly on our ongoing expansion project of
FPC manufacturing plant in Wuxi near the east coast of China,
approximately 80 miles northwest of Shanghai. Upon the completion
of construction of the plant in the second quarter 2009,
manufacturing equipments and human resources were being
established. In the fourth quarter of 2009, the plant spent time
and effort to build samples for customers in applications of
automotive and telecommunications. Small volume of mass
manufacturing is expected to be scheduled in the first quarter of
2010. Continuously, there will be more samples to be built for more
customers and higher volume of mass manufacturing will be
commencing in the coming quarters. PRIVATIZATION OF NTEEP The
compulsory acquisition of Nam Tai Electronic & Electrical
Products Limited ("NTEEP") by the Company was completed on November
12, 2009. Withdrawal of listing of the shares of NTEEP on the Stock
Exchange of Hong Kong also took place with effect from November 13,
2009. As a result, NTEEP has become a wholly-owned subsidiary of
the Company. COMPANY OUTLOOK The business in 2009 was not
satisfactory. The global financial crisis which continues from 2009
will affect the businesses of the Company in 2010. It is believed
that the business of our CECP segment continue to drop in 2010. The
Company will establish careful negotiations with customers on
business terms to reduce further risks. Such uncertainty hinders
the growth and so the business outlook for the Company in 2010
remains tough. While it is believed that sales of optical products
and educational products will remain weak, the demand for LCM and
FPC products is expected to increase. Nevertheless, the growth for
the year 2010 will be limited. The Company will concentrate on the
development and manufacture of FPC products in the future. In the
coming quarters, the Company will focus on re-organization while
achieving improvement in management which utilizes effective risk
control system and strong company governance policies. Where
necessary, new management executives will be recruited. UPDATE ON
TAX DISPUTE WITH HONG KONG INLAND REVENUE DEPARTMENT Regarding the
tax disputes of the 3 inactive or dormant subsidiaries of the
Company, Nam Tai Trading Company Limited, Nam Tai Group Management
Limited and Nam Tai Telecom (Hong Kong) Company Limited, the
Company has been co-operating with the Inland Revenue Department of
Hong Kong ("IRD") all along in supplying them with all the
information we believe is necessary to resolve the disputes.
However, IRD does not accept our explanations that it was necessary
for these 3 subsidiaries to perform their individual functions for
the whole Nam Tai group and therefore the management fees paid by
the Company to support and finance all the necessary overhead
expenses of these subsidiaries (not located in Hong Kong) to
contribute to the businesses representing the administration and
finance departmental functions for the whole group under the
corporate structure at that time were not regarded as necessary
expenses by IRD. Since it is believed that it will be difficult for
these subsidiaries to continue co-operating with IRD in the future,
if the Company discontinues to finance these subsidiaries, they
will be forced to liquidate in due course. As these subsidiaries do
not conduct any business and have been inactive or dormant for
quite some time, and own either limited book-value assets or no
assets, it is believed that there should be no impact on the
Company's overall performance. DIVIDEND After serious consideration
of the financial situations of the Company, the board has
determined to continue to suspend dividend payments in 2010.
PROPOSED SCHEDULE OF (I) RELEASE OF RESULTS ANNOUNCEMENT FOR THE
FINANCIAL YEAR 2010; AND (II) ANNUAL SHAREHOLDERS' MEETING ("ASM")
Quarter Date of release ------- --------------- 1Q 2010 May 3, 2010
(Mon) 2Q 2010 Aug 2, 2010 (Mon) 3Q 2010 Nov 1, 2010 (Mon) 4Q 2010
Feb 21, 2011 (Mon) Date of meeting --------------- ASM Jun 4, 2010
(Fri) FORWARD-LOOKING STATEMENTS AND FACTORS THAT COULD CAUSE OUR
SHARE PRICE TO DECLINE Express or implied statements in this press
release, such as management's assessment of the strength of Nam
Tai's financial condition and cash position, our belief regarding
the benefits and cost reductions to be realized upon completion of
the privatization of NTEEP, the expectations on sales upon
completion of construction of the plant in the Wuxi factory and the
beginning of the mass manufacturing, an increase for demand for LCM
and FPC products and concentration on the development and
manufacture of FPC products in the future, the negotiations with
customers on business terms to reduce further risks and the
benefits which may achieve upon the re-organization of the
management and recruitment of new management executives, are
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements may be identified
by the use of words like "believes," "intends," "expects," "seeks",
"plans" or "planned," "may," "will," "should" or "anticipates," or
the negative equivalents of those words or comparable terminology,
and involve risks and uncertainties. Such statements are based on
current expectations and assumptions and reflect management's views
with respect to future events and may not actually occur during the
periods indicated or at all and are not a guarantee of Nam Tai's
future performance. These forward-looking statements are, by their
nature, subject to risks, uncertainties and other factors that
could cause actual results to differ materially from future results
expressed or implied by the forward-looking statements in this
press release. These risks and uncertainties include whether the
completion of construction of the Wuxi factory and the beginning of
the mass manufacturing, an increase for demand for LCM and FPC
products and concentration on the development and manufacture of
FPC products in the future will have a material effect on sales and
justify the funds expended in the process; whether the negotiations
with customers on business terms are able to reduce further risks;
whether the re-organization of the management and recruitment of
new management executives can achieve the benefits desired; whether
Nam Tai's completion of the privatization of NTEEP will provide Nam
Tai's with meaningful benefits; whether Nam Tai's decision to
eliminate the declaration of dividends during 2010 (or beyond
should conditions warrant) will be able to maintain the financial
position of the Company; and whether the 3 inactive or dormant
subsidiaries of the Company will have no impact on the Company's
overall performance. Product orders and Nam Tai's operating
results, available cash, cash flows, operating results and levels
of capital expenditures may be adversely affected by numerous
factors including adverse global economic conditions generally and
the continuing uncertainties and fears regarding the world's and
nations' economies; Nam Tai's dependence on a few large customers;
intense competition in the electronics manufacturing services, or
EMS, industry in which the Company participates, particularly in
markets that place constant pressure on the Company to reduce unit
prices; continuing competitive pressures that adversely affect its
profit margins; its operating results fluctuating and lacking
predictability; risks relating to its doing business in the PRC
such as arising from changes in governmental policies, trade
regulation, currency exchange rates, particularly from the
appreciation of the renminbi to the U.S. dollar which has occurred
since June 2005, and inflation in the PRC and elsewhere globally;
the timing and amount of significant orders from customers; Nam
Tai's success at attracting new customers; delays in product
development and related product release schedules; obsolete
inventory or product returns; warranty and other claims on
products; technological shifts; the availability of competitive
products of comparable quality at prices below Nam Tai's prices;
maturing product life cycles of the products manufactured by Nam
Tai; concessions Nam Tai may make on product sale terms and
conditions; successful implementation of operating cost structures
that align with revenue; the financial condition of Nam Tai's
customers and vendors; the availability and increasing costs of
materials and other components needed to manufacture Nam Tai's
products; potential shortages of materials or skilled labor needed
to complete its planned expansion project in Wuxi; unforeseen
engineering problems, work stoppages, weather interference, flood,
earthquake or other acts of God, delays in obtaining or failure to
obtain necessary permits from regulatory authorities needed for
completion of its planned new Wuxi facility or to continue existing
operations; unanticipated cost increases; risks of expanding into a
new area of the PRC where Nam Tai's has not yet conducted business,
the success or failure of Nam Tai's efforts to return property
acquired from the Wuxi government for the construction of the
second factory and potential consequences to Nam Tai from
terminating its second Wuxi expansion project; diversion of
management's attention to a new factory in Wuxi and to other
business concerns; the impact of legislative actions, higher
insurance costs and potential new accounting pronouncements; a
worsening of relations between the PRC and the United States; the
effects of terrorist activity and armed conflict that cause
disruptions in general economic activity and changes in Nam Tai's
operations and security arrangements; the effects of travel
restrictions and quarantines associated with major health problems,
such as Severe Acute Respiratory Syndrome, Bird Flu or recent
outbreaks of swine flu, on general economic activity; or other
changes in general economic conditions, including an exacerbation
of the current global economic weaknesses that continue to
adversely affect, or further reduce, demand for Nam Tai's products.
In addition, factors, among others, that could cause the market
price of our shares to decline in the future could include further
decreases in our revenues from those we reported in earlier
periods, our operating results or those of our competitors or
customers to meet the expectations of public market analysts and
investors who follow the EMS, industry, or one or more of the
factors discussed in "Item 3. Key Information -- Risk Factors" in
our Annual Report on Form 20-F for the year ended December 31, 2008
as filed on March 13, 2009 with the Securities and Exchange
Commission. For further information regarding risks and
uncertainties associated with Nam Tai's business, operating results
or financial condition, please refer to the "Operating and
Financial Review and Prospects," "Management's Discussion and
Analysis of Results of Operations and Financial Condition" and
"Risk Factors" sections of Nam Tai's SEC filings, including, but
not limited to, its annual reports on Form 20-F and Reports on Form
6-K containing releases of Nam Tai's quarterly financial results,
copies of which may be obtained from Nam Tai's website at
http://www.namtai.com/ or from the SEC's EDGAR website at
http://www.sec.gov/. All information in this press release is as of
February 8, 2010 in Shenzhen of the People's Republic of China. Nam
Tai does not undertake any duty, and should not be expected, to
update any forward-looking statement to conform the statement to
actual results or changes in Nam Tai's expectations. ABOUT NAM TAI
ELECTRONICS, INC. We are an electronics manufacturing and design
services provider to a select group of the world's leading OEMs of
telecommunications and consumer electronic products. Through our
electronics manufacturing services operations, we manufacture
electronic components and subassemblies, including LCD panels, LCD
modules, RF modules, DAB modules, FPC subassemblies and
image-sensor modules and PCBAs for headsets containing Bluetooth®
wireless technology. These components are used in numerous
electronic products, including mobile phones, laptop computers,
digital cameras, electronic toys, handheld video game devices, and
entertainment devices. We also manufacture finished products,
including mobile phone accessories, home entertainment products and
educational products. We assist our OEM customers in the design and
development of their products and furnish full turnkey
manufacturing services that utilize advanced manufacturing NAM TAI
ELECTRONICS, INC. CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(2) ------------------------------------------------ FOR
THE PERIODS ENDED DECEMBER 31, 2009 AND 2008 (In Thousands of US
Dollars except share and per share data) Unaudited Unaudited Three
months ended Year ended December 31 December 31 2009 2008 2009 2008
---- ---- ---- ---- Net sales $93,735 $169,021 $408,137 $622,852
Cost of sales 83,573 154,373 367,817 552,174 ------------- ------
------- ------- ------- Gross profit 10,162 14,648 40,320 70,678
Costs and expenses General and administrative expenses(3) 6,848
6,865 28,393 29,112 Selling expenses 1,174 1,877 5,266 6,945
Research and development expenses 1,448 3,016 6,273 10,890
Impairment loss on goodwill - 17,345 - 17,345 --- ------ --- ------
9,470 29,103 39,932 64,292 Operating Income (loss) 692 (14,455) 388
6,386 Other (expenses) income, net (181) (303) (256) 6,428 Gain on
sales of shares of a subsidiary - - - 20,206 Interest income 153
1,409 818 6,282 Interest expense - (110) (202) (356) --- ---- ----
---- Income (loss) before income tax 664 (13,459) 748 38,946 Income
tax expenses (254) (1,025) (1,283) (2,877) ---- ------ ------
------ Net income (loss) 410 (14,484) (535) 36,069 Less: Net income
(loss) attributable to the non-controlling interest 6 37 2,187
(5,434) --- --- ----- ------ Net income (loss) attributable to Nam
Tai shareholders $416 $(14,447) $1,652 $30,635 ==== ======== ======
======= Earnings (loss) per share (attributable to Nam Tai
shareholders) Basic $0.01 $(0.32) $0.04 $0.68 ===== ====== =====
===== Diluted $0.01 $(0.32) $0.04 $0.68 ===== ====== ===== =====
Weighted average number of shares ('000) Basic 44,804 44,804 44,804
44,804 Diluted 44,820 44,804 44,810 44,806 (2) On January 1, 2009,
Nam Tai adopted Accounting Standards Codification 810-10-65-1
"Transition Related to FASB Statements No. 160, Noncontrolling
Interests in Consolidated Financial Statements - an amendment of
ARB No. 51, and No. 164, Not-for- Profit Entities: Mergers and
Acquisitions" the provisions of which, among others, requires that
minority interests be renamed noncontrolling interests and that a
company present a consolidated net income (loss) measure that
includes the amount attributable to such noncontrolling interests
for all periods presented. The provisions of this accounting
standard will cease to be applicable once Nam Tai reports its
results following completion of the privatization of NTEEP. (3)
Item of employee severance benefits has been re-grouped into
general and administrative expenses which are separately listed
with selling expenses for this quarter's presentation. As compared
to last three quarters' presentation, selling, general and
administrative expenses are listed as single line item. NAM TAI
ELECTRONICS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
------------------------------------- AS AT DECEMBER 31, 2009 AND
2008 (In Thousands of US Dollars) Unaudited Audited December 31
December 31 2009 2008 ---- ---- ASSETS (Note) Current assets: Cash
and cash equivalents $195,625 $237,017 Accounts receivable, net
57,911 104,150 Entrusted loan receivable (Note 1) - 8,199
Inventories 16,054 27,300 Prepaid expenses and other receivables
3,079 4,148 Deferred tax assets - current 1,460 1,232 ----- -----
Total current assets 274,129 382,046 Property, plant and equipment,
net 108,110 108,067 Land use right 13,296 13,593 Deposits for
property, plant and equipment 32 2,937 Goodwill 2,951 2,951
Deferred tax assets-non current 4,486 3,547 Other assets 920 920
--- --- Total assets $403,924 $514,061 ======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Entrusted
loan payable (Note 1) $- $8,199 Notes payable 691 - Accounts
payable 58,667 98,125 Accrued expenses and other payables 16,397
25,967 Dividend payable - 9,857 Income tax payable 656 861 --- ---
Total current liabilities 76,411 143,009 Deferred tax liabilities
1,103 740 ----- --- Total liabilities 77,514 143,749 EQUITY Nam Tai
shareholders' equity: Common shares 448 448 Additional paid-in
capital 285,264 282,767 Retained earnings 40,706 39,054 Accumulated
other comprehensive loss (Note 2) (8) (8) --- --- Total Nam Tai
shareholders' equity 326,410 322,261 Non-controlling interest
(NTEEP) - 48,051 --- ------ Total equity 326,410 370,312 -------
------- Total liabilities and shareholders' equity $403,924
$514,061 ======== ======== Note: Information extracted from the
audited financial statements included in the 2008 Form 20-F of the
Company filed with the Securities and Exchange Commission on March
13, 2009. NAM TAI ELECTRONICS, INC.CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
----------------------------------------------- FOR THE PERIODS
ENDED DECEMBER 31 2009 AND 2008 (In Thousands of US Dollars)
Unaudited Unaudited Three months ended Year ended December 31
December 31 2009 2008 2009 2008 ---- ---- ---- ---- CASH FLOWS FROM
OPERATING ACTIVITIES Net income (loss) $416 $(14,447) $1,652
$30,635 ----------------- Adjustments to reconcile net income to
net cash provided by operating activities: Depreciation and
amortization of property, plant and equipment and land use right
6,669 5,464 23,116 22,208 Net loss (gain) on disposal of property,
plant and equipment 1,657 (18) 1,248 (13) Impairment loss on
goodwill - 17,345 - 17,345 Dividend withheld - - - (305) Gain on
sales of subsidiaries' shares - - - (20,206) Deferred income taxes
(393) 150 (804) (793) Share-based compensation expenses - 22 67
1,228 Unrealized exchange gain (37) (817) (39) (4,757)
Non-controlling interests (6) (37) (2,187) 5,434 Changes in current
assets and liabilities: Decrease (increase) in accounts receivable
14,454 20,418 46,239 (8,499) (Increase) decrease in inventories
(1,046) 7,372 11,246 5,056 (Increase) decrease in prepaid expenses
and other receivables (595) (328) 1,069 1,574 Decrease in income
taxes recoverable - - - 5,439 Increase (decrease) in notes payable
83 - 691 (4,580) Decrease in accounts payable (5,316) (21,388)
(39,458) (9,201) Decrease in accrued expenses and other payables
(149) (2,014) (4,132) (4,233) (Decrease) increase in income tax
payable (97) (67) (205) 459 --- --- ---- --- Total adjustments
15,224 26,102 36,851 6,156 ------ ------ ------ ----- Net cash
provided by operating activities $15,640 $11,655 $38,503 $36,791
------- ------- ------- ------- CASH FLOWS FROM INVESTING
ACTIVITIES Net cash inflow from disposal of subsidiaries $- $- $-
$6,671 Purchase of property, plant and equipment (8,763) (13,938)
(30,420) (27,407) Decrease (increase) in deposits for purchase of
property, plant and equipment 878 (2,382) 2,905 (2,606) Decrease in
other assets - 299 - 299 Increase in prepayment for land use right
- - - (663) Decrease (increase) in entrusted loan receivable - -
8,199 (8,166) Acquisition of additional shares in subsidiaries
(1,736) - (43,434) (2,906) Proceeds from disposal of property,
plant and equipment 12 24 872 55 --- --- --- --- Net cash (used in)
investing activities $(9,609) $(15,997) $(61,878) $(34,723) -------
-------- -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES
Cash dividends paid $- $(9,856) $(9,857) $(47,675) Payment on
repurchase of share option - (110) - (110) Proceeds from entrusted
loan - - (8,199) 8,166 Repayment of bank loans - - - (2,648) ---
--- --- ------ Net cash used in financing activities $- $(9,966)
$(18,056) $(42,267) --- ------- -------- -------- Net increase
(decrease) in cash and cash equivalents 6,031 (14,308) (41,431)
(40,199) Cash and cash equivalents at beginning of period 189,557
250,508 237,017 272,459 Effect of exchange rate changes on cash and
cash equivalents 37 817 39 4,757 --- --- --- ----- Cash and cash
equivalents at end of period $195,625 $237,017 $195,625 $237,017
======== ======== ======== ======== NAM TAI ELECTRONICS, INC. NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
----------------------------------------------------------------
FOR THE PERIODS ENDED DECEMBER 31, 2009 AND 2008 (In Thousands of
US Dollars) 1. The entrusted loan represented the loan arrangement
between two subsidiaries, Namtai Electronic (Shenzhen) Co. Ltd.
(the "entrusting party") and Jetup Electronic (Shenzhen) Co. Ltd.
(the "borrower"), via HSBC Bank (China) Company Limited, Shenzhen
Branch (the "lender"). The entrusted loan was repaid in July 2009.
2. Accumulated other comprehensive income represents foreign
currency translation adjustments. The comprehensive (loss) income
attributable to Nam Tai shareholders of the Company was $996 and
$30,635 for the twelve months ended December 31, 2009 and December
31, 2008, respectively. 3. Business segment information - The
Company operates primarily in three segments, the Consumer
Electronic and Communication Products ("CECP") segment,
Telecommunication Component Assembly ("TCA") segment, and the LCD
Products ("LCDP") segment. Unaudited Unaudited Three months ended
Year ended December 31 December 31 2009 2008 2009 2008
--------------------- ---------------------- NET SALES : - CECP
$25,328 $62,303 $116,063 $271,365 - TCA 50,150 91,238 222,959
274,953 - LCDP 18,257 15,480 69,115 76,534 Total net sales $93,735
$169,021 $408,137 $622,852 ======= ======== ======== ======== NET
INCOME : - CECP $2,110 $5,887 $6,710 $27,359 - TCA (1,188) 15
(2,144) 3,671 - LCDP 1,116 (20,320) 1,571 (20,735) - Corporate
(1,622) (29) (4,485) 20,340 Total net income (loss) attributable to
Nam Tai shareholders $416 $(14,447) $1,652 $30,635 ==== ========
====== ======= Unaudited Audited --------- ------- Dec. 31, Dec.
31, 2009 2008 --------- --------- IDENTIFIABLE ASSETS BY SEGMENT: -
CECP $112,058 $189,889 - TCA 141,734 164,516 - LCDP 42,153 42,977 -
Corporate 107,979 116,679 ------- ------- Total assets $403,924
$514,061 NAM TAI ELECTRONICS, INC. NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS (Unaudited)
------------------------------------------------------ FOR THE
PERIODS ENDED DECEMBER 31, 2009 AND 2008 (In Thousands of US
Dollars) 4. A summary of the net sales, net income and long-lived
assets by geographic areas is as follows: Unaudited Unaudited Three
months ended Year ended December 31 December 31 2009 2008 2009 2008
------------------- -------------------- NET SALES FROM OPERATIONS
WITHIN: - PRC, excluding Hong Kong and Macao: Unaffiliated
customers $93,735 $169,021 $408,137 $622,852 Intercompany sales - 5
19 141 - Intercompany eliminations - (5) (19) (141) --- --- ---
---- Total net sales $93,735 $169,021 $408,137 $622,852 =======
======== ======== ======== NET INCOME (LOSS) FROM OPERATIONS
WITHIN: - PRC, excluding Hong Kong and Macao $2,098 $(17,083)
$5,533 $(4,542) - Hong Kong & Macao (1,682) 2,636 (3,881)
35,177 ------ ----- ------ ------ Total net income (loss)
attributable to Nam Tai shareholders $416 $(14,447) $1,652 $30,635
==== ======== ====== ======= Unaudited Audited --------- -------
Dec. 31, Dec. 31, 2009 2008 --------- --------- LONG-LIVED ASSETS
WITHIN: - PRC, excluding Hong Kong and Macao $121,286 $121,475 -
Hong Kong and Macao 120 185 --- --- Total long-lived assets
$121,406 $121,660 Website: http://www.namtai.com/ DATASOURCE: Nam
Tai Electronics, Inc. CONTACT: Investors, Kee Wong, +852-2341-0273,
or Fax, +852-2263-1223, Web Site: http://www.namtai.com/
Copyright