SHENZHEN -- Nam Tai Electronics reported first-quarter revenues fell 30.6% from a year ago to $102.2 million.

The electronics manufacturing services company, the world's 17th largest according to the CIRCUITS ASSEMBLY Top 50, said the net loss was $3.9 million, down from a profit of $28.4 million a year ago. The operating loss was $6.5 million, down from $7.8 million in profits last year.

Telecommunication component assembly sales fell 11.1% during the March quarter on lower demand for flexible printed circuit assemblies. LCDP and CECP sales dropped 25.3% and 48.5%, respectively.

For the quarter, gross margin was 7%, down from 13.3% in the first quarter 2008. The lower margin was due to lower sales and changing product mix.

The firm took $3.2 million in charges due to employee severance benefit expenses. Since Dec. 31, Nam Tai has reduced headcount by 2,000 employees, to 5,100 workers. The firm has cut 47% of its workforce since the end of the September quarter.

Nam Tai spent approximately $11 million on its expansion in Wuxi, where construction on a new facility is nearing completion and is expected to be available for mass production by the fourth quarter. The firm, which earlier postponed construction until at least mid-2009 of two other manufacturing facilities, one in Shenzhen and the other in Wuxi, said it is now considering indefinite postponement or termination of the second Wuxi expansion project.

Nam Tai said it would be "difficult" to improve operating results significantly or at all in 2009.

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