An electronics manufacturing and design services provider Nam Tai Electronics Inc. announced the unaudited financial results for the first quarter ended March 31, 2010. It is stated in the review that the business environment in Nam Tai’s product sectors remains extremely competitive. The weak market demand for consumer products adversely affected sales of all the end-user products of the company.
According to the report, published on May 3, 2010, BVI company’s net sales decreased by 22.4 per cent to US$79.3mln, compared to US$102.2mln in the first quarter of 2009. Gross profit in Q1 2010 was US$6.5mln, 8.7 per cent down from US$7.1mln in Q1 2009, primarily because of the decrease in sales. The company reported gross profit margin at 8.2 per cent (7.0 per cent in the same quarter of the previous year).
In the first quarter of this year, Nam Tai reported net loss attributable to its shareholders of US$1.1mln, as compared to net loss of US$3.9mln in the same quarter of 2009. The loss in Q1 2010 primarily resulted from the overall decline in sales, whereas the reason for the loss in Q1 2009 was a US$5.1mln restructuring charge for employee severance expenses in Chinese subsidiaries of Nam Tai Electronics.
Loss per share (basic and diluted) in the first quarter of 2010 was US$0.02, as compared to basic and diluted loss per share of US$0.09 in the first quarter of the previous year.
As at March 31, 2010, Nam Tai’s financial position remained strong with US$196.8mln cash on hand. Net cash provided by operating activities was US$4.4mln. In the first quarter of 2010, capital expenditure of the company made US$3.3mln.