SHENZHEN -- Nam Tai Electronics, the world's 23d largest EMS company, said its March quarter sales fell 22.4% year-over-year as its telecom and consumer handhelds segments continued to slide.

Sales in the first quarter ended March 31 were $79.3 million, dragged down by consumer (down 52.2%) and telecom (down 13.2%), and offset in part by a 21.2% hike in LCD panel demand. The net loss was $1.1 million, up from a loss of $3.9 million in 2009. Nam Tai recorded a $5.1 million restructuring charge in the year ago quarter.

Gross profit margin was 8.2%, up 120 basis points from 2009. Gross profit was $6.5 million, down 8.7%. Net cash from operating activities was $4.4 million.

As of March 31, the electronics assembly manufacturer had $196.8 million cash on hand.

The company has completed its expansion of its flexible PCB manufacturing plant in Wuxi, and plans to expand in Guangming in 3 to 5 years.

Nam Tai said its consumer business continues to be weak, though demand for LCD panels and modules and flexible printed circuit boards and subassemblies will increase in 2010. The company said overall business in 2010 "may grow, but only slightly from 2009 levels," and wage inflation in China could hamper profitability.

The company said it would start to focus more on flex products and reduce or eliminate its lower-margin consumer segment.  

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