NTEEP Announces 2006 Q1 Results18 May 2006
Nam Tai Electronic and Electrical Products Limited ("NTEEP" or "the Company")(Stock code: 2633), the leading vertically-integrated manufacturing solutions provider of consumer electronics and communications products and software development specializing in digital dictionary and car navigation system., today announced its unaudited consolidated results for the first quarter of 2006 ended March 31, 2006.
During the quarter ended March 31, 2006, the Company recorded sales of US$35.2 million, representing a drop of 16.3% as a result of the delay in development plan of a major client leading to the reduction in order quantity as compared to the same period last year.
Coupled with the drop in gross profit based on the adoption of a competitive pricing policy, operating income and net profit of the Company for the first quarter of 2006 also dropped significantly by 24.4% and 20.8% respectively as compared to the same period last year.
Excluding the contribution of the software business and exchange gain on RMB assets as a result of the appreciation of RMB in this quarter, net profit from the core business of the Company declined by approximately 30.9%.
Ms. WONG Kuen Ling, Karene, Chairman of NTEEP, said, "Looking ahead, it is expected that the significant decline in sales of optical devices and competitive market condition will repeat in the second quarter 2006 as compared to the same period last year. Nonetheless, we believe the software business will continue to contribute to the Company and the Company will endeavour to expand its customer portfolio and develop a more diversified range of products to suit market needs. The Company has already secured orders for the production of a number of Bluetooth(TM) devices for its existing customers. In addition, the Company is in the process of running pre-production of small size CMOS camera modules for a new client and will keep on pursuing new orders from other customers for all of its product lines."
About NTEEP
Nam Tai Electronic & Electrical Products Limited ("NTEEP"), a subsidiary of Nam Tai Electronics, Inc. which is listed on the New York Stock Exchange, is a well-established vertically integrated manufacturing solutions provider for some of the world's most reputable brand owners of consumer electronics and communications products including optical devices, home entertainment devices, mobile phone accessories and educational products. NTEEP is also a total solution provider offering a wide range of services on software development, data processing and compression and electronic hardware design and development specializing in digital dictionary and car navigation system. NTEEP's largest customers include Sony Ericsson Mobile Communications AB, Texas Instruments Incorporated, Sony Computer Entertainment Europe Ltd. and GN Netcom A/B.
Nam Tai Electronics, Inc. ("NTE") (New York Stock Exchange symbol: NTE) is an electronics design and manufacturing service provider to many of the world's leading original equipment manufacturers, including Canon, Epson, Optrex, Seiko Instruments, Sharp, Sony, Sony Ericsson, Texas Instruments, Toshiba and others. It manufactures high-quality telecommunications products, palm-sized PCs, personal digital assistants, linguistic products, calculators and components such as LCD modules, wireless communication terminals and their modules.
For more information about NTEEP, please visit its websites at http://www.namtaieep.com . For more information about NTE, please visit its website at http://www.namtai.com .
Nam Tai Electronic & Electrical Products Limited
2006 Q1 Results Key Highlights
(In thousands of US Dollars, except as otherwise stated)
Quarterly Results
1Q 2006 Q1 2005 YoY (%)
Sales (Revenue) 35,170 42,028 (16.3)
Gross Profit 6,830 8,430 (19.0)
% of sales 19.4% 20.1%
Operating Income 3,814 5,044 (24.4)
% of sales 10.8% 12.0%
per share (US cent) 0.43 0.63 (31.7)
Net Profit (a) 4,027 5,087 (20.8)
% of sales 11.5% 12.1%
Basic earnings per share 0.46 0.64 (28.1)
(US cent)
Diluted earnings per share (US cent) 0.46 0.64 (28.1)
Weighted average number of shares
('000)
Basic (b) 881,671 800,000
Diluted (b) 881,671 800,000
Notes:
(a) Software Business Group, comprising Namtek Japan Company Limited
and Shenzhen Namtek Co. Ltd., continued to contribute to the
profits of the Group (the "Group" comprising the Core Business
Group and Software Business Group). In addition, exchange gain on
the RMB assets of the Group as a result of the appreciation of RMB
was recorded in the first quarter of 2006. If there had not been
the contribution of the Software Business Group and the exchange
gain, the net profits for Q1 2006 would have been a drop of
US$1,572,000 (30.9%) as shown below:
Quarterly Results
Q1 2006 Q1 2005 Core
US$'000 The Software Core Core Business Group
Group Business Business Business YoY
Group Group Group (%)
Sales (Revenue) 35,170 985 34,185 42,028 (18.7)
Gross Profit 6,830 763 6,067 8,430 (28.0)
Operating Income 3,814 391 3,423 5,044 (32.1)
Net Profit 4,027 369 3,658 5,087 (28.1)
Exchange gain on RMB assets 143 -- N/A
Adjusted net profit 3,515 5,087 (30.9)
(b) The Company issued 81,670,588 shares for the acquisition of
Software Business Group on 17 May 2005 and its result was included
as from that day.
(c) Depreciation of buildings leased to a fellow subsidiary is
reclassified as "other expense" from "cost of sales" and
"administrative expense". As a result, comparative figures in
gross profit and operating income have been reclassified to
conform to the current period's presentation. This
reclassification had no effect on the net income or financial
position for the period presented.
For more information, please contact:
Joyce Lam
Tel: +852-2263-1014
Fax: +852-2263-1223
Email: joycelam@namtai.com.hk
Source: prnewswire
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