SHENZHEN -- Nam Tai Electronics, the world's 17th largest EMS company, reported second-quarter sales fell 30.3% from a year ago to $101.8 million.

For the period ended June 30, net income fell 94.8% to $600,000.

During the quarter, Consumer Electronic and Communication Products segment sales dropped 63.7% compared to 2008. Nam Tai builds mobile phone accessories, educational products, optical products and home entertainment devices. LCD Products segment sales fell 29% on weak demand for LCD panels. Telecommunication Component Assembly sales increased 12.3%. CECP sales made up 26% of overall sales for the quarter, down from 50% a year ago.

The gross margin was 10.2%, down from 14.2% in 2008. Gross profit in the second quarter of 2009 was $10.4 million, a decrease of 49.8%, as compared to $20.8 million in the second quarter of 2008.

During the quarter, Nam Tai spent approximately $3.4 million on its expansion in Wuxi, China, and expects the project to be on schedule for mass production of FPC boards, FPC subassemblies and other products by the fourth quarter.

The company confirmed the termination of a second facility in Wuxi, and is also continuing returning the land to the Wuxi government. It also indefinitely postponed construction of a manufacturing facility in the Shenzhen Guangming Hi-Tech Industrial Park.