SHENZHEN -- Nam Tai Electronics swung to a second-quarter net loss of $31.9 million despite a big jump in sales. For the period ended June 30, the contract electronics manufacturer said net sales were up 64% to $167.9 million.

The EMS company reported profits of $9.4 million in the year ago quarter. It cited one-time charges of $41 million due to impairment, tax expenses, and layoff compensation tied to its discontinued liquid crystal module business for the drop.

The revenue gain also excludes sales from discontinued businesses of $113.7 million for the same quarter 2012.

Gross profit margin for the period was 9.4%, down from 15% last year.

The company's Wuxi facility halted production operations at the end of May due to a lack of new customer orders and after it was unsuccessful in finding a joint venture partner. By the end of July, headcount at facility was down to 32 employees, who are working to sell the plant.

Nam Tai also said it plans to convert about 566,100 sq. ft. of land at its existing Shenzhen facility in Gushu into a high-end commercial complex. It also is considering selling 1.2 million sq. ft. of land in the Guangming Hi-Tech Industrial Park.

Nam Tai, which grew faster than any other EMS company in the world last year, said competition and inflation will likely lead to a significant reduction in orders. It plans to maintain its LCM operations, including strategic or technological alliances with other complementary business operations.

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