SHENZHEN -- Nam Tai Electronics today announced third quarter net income fell 27% year-over-year despite a 61% jump in revenue. The contract electronics manufacturer reported $18 million in profits on sales of $284.2 million for the period ended Sept. 30.

Net sales, gross profit and operating income excluded the company's discontinued operations in Wuxi. Including the Wuxi operations, the EMS firm posted revenue last year of $380.3 million.

The company said most of its revenue came from high-resolution LCMs for smartphones.

Nam Tai did show dramatic improvement in inventory turns, cutting its turnover rate to 17 days from 64 days a year ago. Gross profit margin was 8.2%, a decrease of 3.1 percentage points.

In a statement, Nam Tai, one of the fastest-growing EMS companies in 2012, said its core business continues to encounter challenging market conditions. "The company's production costs have been under rising cost pressures due to escalating labor cost, inflation and labor shortage. Our core LCM business has experienced very stiff industry competition and a volatile market demand resulting in high fluctuation and changes in orders. The company's LCM production operation at its Wuxi manufacturing facility was discontinued to minimize costs and preserve cash at the end of the second quarter due to the lack of new orders."

The Wuxi land and facility are being prepped for sale.