Nam Tai Electronics, Inc., the contract manufacturer producing components for consumer electronics products, has released on February 4, 2007 the unaudited financial results for the fourth quarter and for the year ended December 31, 2007.
As a result of decline in the telecommunication components assembly (TCA) segment, the fourth quarter sales volume in this sector decreased 18.6%, and the sales for the 12 months ended December 31, 2007 decreased 10.3%. The BVI company explained that one of its indirect customers in the mobile phone market suffered a substantial drop of sales in Asia and Europe which continued in the fourth quarter 2007 and showed no signs of reverse in 2008.
However, according to the fourth quarter and the whole year results, Nam Tai increased sales in the segment of liquid crystal display panels and modules, which during these periods grew by 29% and 29.7% respectively. Also, the consumer electronics and communication products segment increased by 29.2% and 59.1% in the fourth quarter and in the whole year, respectively.
Net sales in the fourth quarter of the year were $186.9 million – that is a 18.6% decrease if compared to $229.6 million in the fourth quarter of 2006. Gross profit for the last three months of 2007 was $21.0 million, a decrease of 4.4% compared to $22.0 million in the same period of the previous year. Operating income for the fourth quarter increased dramatically and made $7.7 million, compared to 2006 fourth quarter operating loss of $2.6 million. The 2006 fourth quarter operating loss became the result of a judgement that made the BVI corporation to reinstate its shares that were redeemed from Tele-Art.
For the whole year period ended December 31, 2007, net sales of Nam Tai Electronics made $780.8 million, a decrease of 10.3% if compared to $870.2 million in 2006. Gross profit was $87.0 million – it is a 0.9% decrease compared to the results for the year 2006. Operating income for the year 2007 decreased 4.3%, to $40.7 million, compared to $42.5 million in 2006. Net income for the year was $69.5 million, that may be considered a substantial growth of 70.5% as compared to $40.8 million in 2006.
It can be summarized that the BVI corporation Nam Tai Electronics continues to maitain strong financial positions. In December 2007, the company purchased Shenzhen Guangming Hi-Tech Industrial Park, satisfying in full the land payments for that project in the amount of $6.8 million.