SHENZHEN -- Nam Tai Electronics reported third-quarter net income of $7.6 million, up 68.9% from last year on higher sales.

Sales for the period ended Sept. 30 rose 58.3% from a year ago to to $174.7 million. Gross margin fell 120 basis points to 10.2%, on start-up costs from the company's new flexible printed circuit board facilities in Wuxi, China, and changes in product mix. Gross profit was $17.9 million, up 41.6%.

Nam Tai, the world's 23 largest EMS company according to the CIRCUITS ASSEMBLY Top 50, is looking at a pair of potential expansions, one at the Guangming Hi-Tech Industrial Park in Shenzhen, and the other at the company's existing site in Wuxi.

Following a marginal first-half, the company showed substantial improvement in the third quarter, Nam Tai said. Orders for optical and educational products increased and are expected to remain stable to 2009 levels. Demand for LCD modules and telecommunication subassemblies increased considerably and are expected to show similar momentum into the fourth quarter. Based on these developments, we believe that Nam Tai's overall business in the fourth quarter will be strong, although the usual seasonal decline at the end of 2010 should be anticipated.

Nam Tai also named Tohru Odashima president of FPC manufacturing in Wuxi.

The contract electronics manufacturer said it would raise employee salaries an average 30% this quarter. The hikes come on top of a 20% raise in April.

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