VANCOUVER, British Columbia -- Nam Tai Electronics' fourth-quarter net sales were down 7.1% to $229.6 million from 2005.

For the period ended Dec. 31, the net loss was $2.3 million, down 118.3%. Sales were hurt by weakening demand from the telecommunications sector, plus pricing pressure.
Non GAAP operating income was $12 million, down 17.2% from last year.

For the year ended Dec. 31, Nam Tai's net sales rose 9.1% to $870.2 million. It was the eighth consecutive year of topline growth. Operating income fell 19.3% to $42.5 million, and net income dropped 20.6% to $40.8 million.

For the quarter, net cash from operations was $19.8 million, and capital expenditures totaled $6.4 million. The company ended the quarter with $221.1 million cash on hand. 

Expansion plans are in progress to further the vertical integration capabilities of Nam Tai's component subassembly business. The company is constructing manufacturing facilities in Wuxi and Shenzhen. Construction of the Wuxi facilities is expected to begin in mid 2007, with production in place by the end of 2008. Mass production at the Shenzhen facilities is planned for the second quarter 2007.

"Despite a challenging 2006, which we expect to continue in 2007, our target of 12% sales growth for 2007 remains unchanged," said Warren Lee, Nam Tai's chief executive officer.

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