Top 15 EMS provider Nam Tai Electronics
today reported second-quarter net income rose 110% to $38.8 million despite a 7.4% drop in sales.
For the period ended June 30, the company reported revenues of $197.8 million, down from $213.7 million a year ago. Gross margins were up nearly two points to 11.5%.
The company benefited from a one-time gain; without it, the net profit would have been $8.6 million.
The sales drop was due to a softness in telecommunications demand brought on by a "substantial drop" in sales of mobile devices in Asia
and Europe from an indirect customer, Nam Tai said.
Sequentially, revenue improved about 3% from the first quarter mainly on growth in LCD products, consumer electronics and
For the quarter, net cash from operations was $28.7
million, and the company ended the quarter with $268.3 million cash on hand. Capital expenditures were $5.7 million.
In a statement, Nam Tai said, "We are working hard to stabilize our results by improving
efficiencies, broadening our product offerings and diversifying our
customer base. Recent customer wins include FLY Fusion Pentop
Computers for LF Leapfrog
and 1.3 MP CMOS image
sensor modules for a Japanese maker of notebook computers.
In June, Nam Tai made a $700,000 deposit to acquire land in Shenzhen. It is also accelerating a planned expansion