SHENZHEN -- Top 25 EMS firm Nam Tai Electronics reported second-quarter net income rose 213% year-over-year to $9.4 million.

The results included customer compensation of $4 million, income from discontinued business (net of tax) of $1 million, an advanced technology allowance of $2.6 million from Wuxi government and interest income, offset slightly by currency exchange losses.

For the period ended June 30,net sales rose 62.8% to $205.2 million as the company's new site in Wuxi ramped to volume production of LCD modules for tablets in June.

Gross margin was 9.2%, up 390 basis points from the second quarter last year. Gross profit was $18.9 million, up 182.8% from last year.

During the period, the contract printed circuit board assembler purchased 470,000 sq. ft. of land from the Wuxi government to expand its local manufacturing facility. The expanded facility will include office buildings, a research and development center, an environmental and safety control center, a SMT plant and warehouse, labor union buildings and employee activity centers.

A planned expansion of the EMS company's Shenzhen facility remains in the hands of the Shenzhen government.

Nam Tai said it has reached an agreement to build high-resolution LCD modules for smartphones at its Shenzhen manufacturing facility, and the production pilot run will start in this month, with mass production scheduled for September.

• Prev
• Next