MACAO, CHINA – EMS provider Nam Tai Electronics Inc. reported second-quarter sales of $146.2 million, down 26.1% year-over-year.

The drop in net sales is attributed mainly to the continuing decline in business from the company's telecommunication components assembly segment. Net sales in the TCA segment for the second quarter decreased by 48% compared to the same quarter of

2007. The TCA segment is primarily dependent on the mobile phone market, Nam Tai says.

Net income was $11.8 million, down 69.6% compared to the second quarter last year.

For the first half of the year, net sales were $293.3 million, down 24.7% compared to the same period of 2007.

Net income for the first half was $40.2 million, down 14.9% year-over-year.

On March 4, Nam Tai completed the sale of its entire equity interest in J.I.C. Technology Co. Ltd. to an independent third party.

The company says recent global adverse economic conditions aggravated the firm’s results in the past quarter and may exacerbate the difficult business environment Nam Tai currently faces and could result in negative effects to the results of operations during the next several quarters. Additionally, the firm also face issues such as the continuing appreciation of the exchange rate of the renminbi to the US dollar, the effects of changing tax and labor laws in China, shortages of electricity supply and increases in overhead expenses resulting from inflation.