VANCOUVER -- Nam Tai Electronics on Monday reported third-quarter flat net income of $18.8 million on sales of $207 million, up 50.6% year-over-year. The EMS company's sales are up 44.3% year-to-date, although net income has dropped 65% to $38.6 million.

Sales during the September quarter exceeded company upper guidance of $180 million. Gross profit margin remained 12.2%. The company took a $1 million charge for restructuring in Hong Kong.

"We are very pleased to see the continuous growth in our sales results and four consecutive quarters of record breaking quarterly sales, which have corroborated the effectiveness of our focusing efforts on the key components subassemblies business," said Joseph Li, chief executive, in a press statement. "We are confident of outperforming the target of 30-35% sales growth in 2005."

Shenzhen, China, has committed 1.3 million sq. ft. of land for a planned factory that is more than double the size of the company's existing facilities. Construction will be completed in the next five years.

The company guided for fourth-quarter sales of $190 million to $200 million, up 24-31% from last year. It forecast gross profit margin of 10-10.6% due to expected shortfalls at one of its subsidiaries.

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