Nam Tai Electronics, Inc. Q4 2012 Sales up 263%, Gross profit margin at 10.5%

Nam Tai Electronics, Inc. Q4 2012 Sales up 263%, Gross profit margin at 10.5%

Year 2012 Sales up 118%, Gross profit margin at 9.2%

PR Newswire

SHENZHEN,China, Jan. 28, 2013

SHENZHEN,China, Jan.28, 2013 /PRNewswire/ --Nam Tai Electronics, Inc. ("Nam
Tai" or the "Company")(NYSE Symbol: NTE) today announced its unaudited
results for the fourth quarter ended December 31, 2012.

KEY HIGHLIGHTS
(In thousands of US Dollars, except per share data, percentages and as
otherwise stated)
            Quarterly Results                Yearly  Results
            Q4 2012   Q4 2011   YoY(%)^(^d^) 2012       2011      YoY(%)^(^d^)
Net sales ^ $468,464  $129,073  263          $1,147,923 $525,077  118
(a)
Gross
profit ^    $48,964   $1,238    3,855        $105,777   $19,252   449
(a)
% of sales  10.5%     1.0%      -            9.2%       3.7%      -
Operating
income      $38,227   $(9,054)  -            $73,307    $(11,354) -
(loss) ^
(a)
% of sales  8.2%      (7.0%)    -            6.4%       (2.2%)    -
per share   $0.84     $(0.20)   -            $1.62      $(0.25)   -
(diluted) ^
Net income
(loss) ^    $36,606   $(5,611)  -            $66,921    $505      13,152
(^b^) (^c^)
% of sales  7.8%      (4.3%)    -            5.8%       0.1%      -
Basic
earnings    $0.82     $(0.13)   -            $1.49      $0.01     14,800
(loss) per
share
Diluted
earnings    $0.80     $(0.13)   -            $1.48      $0.01     14,700
(loss) per
share
Weighted
average
number of
shares
('000)
Basic       44,804    44,804    -            44,804     44,804    -
Diluted     45,692    44,825    -            45,345     44,841    -
Notes:
(a) The net sales, gross profit and operating income (loss) have excluded the
discontinued business of Liquid Crystal Display Panels (LCDP). For the three
months ended December 31, 2012 and December 31, 2011, the discontinued
operation recognized net sales of $0.1 million and $16.2 million, a gross
profit of nil and $1.1 million, and an operating income (loss) of $0.6 million
and ($3.5 million) respectively. For the twelve months ended December 31, 2012
and December 31, 2011, the discontinued operation recognized net sales of
$24.2 million and $77.2 million, a gross (loss) profit of ($0.6 million) and
$8.8 million, an operating loss of $2.2 million and nil, respectively. (Please
see page 7 of the Company's Condensed Consolidated Statements of Operations
for details).

(b) Net income for the three months ended December 31, 2012 has included
profit from discontinued business (net of tax) of $0.1 million and other &
interest income of $4.0 million, which consisted of cash incentive bonus
reversal of $0.7 million, income from scrap of $0.5 million, incentive
allowance received from government of $0.3 million and interest income &
exchange gain of $1.6 million.

(c) Net income for the twelve months ended December 31, 2012 has included loss
from discontinued business (net of tax) of $0.7 million, and other & interest
income of $11.9 million, which consisted of subsidy received as an advance
technology allowance from Wuxi government as an incentive for our investment
and factory expansion in Wuxi of $2.8 million, income from scrap of $1.1
million, cash incentive bonus reversal of $0.7 million, incentive allowance
from Shenzhen government for mechanical and electrical products of $0.6
million and interest income & exchange gain of $4.1 million.

(d) Percentage change is not applicable if either of the two periods contains
a loss.

(e) This information has been published on the Company's website
http://www.namtai.com/quarterly/quarterly.htm under the quarterly earnings
report of Q4 2012 on page 7, Condensed Consolidated Statements of Operations.

SUPPLEMENTARY INFORMATION (UNAUDITED) IN THE FOURTH QUARTER OF 2012

1. Quarterly Sales

(In thousands of US Dollars, except percentage information)
                                               YoY(%)          YoY(%)
Quarter           2012            2011
                                               (Quarterly)     (Quarterly
                                                               accumulated)
1^st Quarter      $94,062         $142,410     (33.9)          (33.9)
2^nd Quarter      $205,146        $125,994     62.8            11.5
3^rd Quarter      $380,251        $127,600     198.0           71.6
4^th Quarter      $468,464        $129,073     262.9           118.6
Total             $1,147,923      $525,077
Note:
* The above sales have excluded certain discontinued business. Please see page
7 of the Company's Condensed Consolidated Statements of Operations for
details. This information has also been published on the Company's website at
http://www.namtai.com/quarterly/quarterly.htm in the quarterly earnings report
of Q4 2012 on page 7, Condensed Consolidated Statements of Operations.



2. Key Highlights of Financial Position
                                     As at December 31,
                                     2012                 2011^(a)
Cash on hand ^(b)                    $157.8 million       $118.5 million
Ratio of cash ^ to current           0.58                 0.88
liabilities
Current ratio                        1.67                 2.22
Ratio of total assets to total       2.33                 3.38
liabilities
Return on equity                     19.5%                0.2%
Ratio of total liabilities to total  0.75                 0.42
equity
Debtors turnover                     49 days              46 days
Inventory turnover                   19 days              19 days
Average payable period               66 days              54 days
Notes:
(a) The Company's ratios as at December 31, 2011 have been restated according
to the reclassified assets and liabilities resulted from discontinued
business. Please see page 8 of the Company's Condensed Consolidated Balance
Sheets for further information. This information has also been published on
the Company's website at http://www.namtai.com/quarterly/quarterly.htm in the
quarterly earnings report of Q4 2012 on page 8, Condensed Consolidated Balance
Sheets.

(b) According to the definition of "Balance Sheet" under the Financial
Accounting Standard Board (the "FASB") Accounting Standards Codification
("ASC") 210-10-20, cash equivalents are short-term, highly liquid investments
that are readily convertible to cash. Only investments with original
maturities of three months or less when purchased qualify under that
definition. Therefore, the fixed deposits maturing over three months are not
classified as cash on hand but require separate disclosure.

OPERATING RESULTS

Sales in the fourth quarter of 2012 were $468.5 million, an increase of
262.9%, compared to the sales of $129 million for the same quarter of 2011.
Gross profit in the fourth quarter of 2012 was $49 million, an increase of
3,855%, compared to $1 million in the fourth quarter of last year. Gross
profit margin for the fourth quarter of 2012 was 10.5%, up 9.5% from 1% in the
fourth quarter of last year. Operating income for the fourth quarter of 2012
was $38 million, compared to an operating loss of $9 million in the fourth
quarter of last year. Net income in the fourth quarter of 2012 was $36.6
million, or $0.8 per share (diluted), compared to the net loss of $5.6
million, or loss of $0.13 per share (diluted), in the fourth quarter of last
year.

For the twelve months ended December 31, 2012, net sales were $1.2 billion, an
increase of 118.6%, as we reached a new sales record, compared to $525 million
in the same period of 2011. Gross profit for the twelve months ended December
31, 2012 was $105.8 million, an increase of 449.4%, compared to $19.3 million
in the same period of last year. Gross profit margin for the twelve months
ended December 31, 2012 was 9.2%, an increase of 5.5%, compared to 3.7% for
the same period of last year. Operating income for the twelve months ended
December 31, 2012 was $73.3 million, compared to an operating loss of $11.4
million in the same period of last year. Net income for the twelve months
ended December 31, 2012 was $66.9 million, or $1.48 per share (diluted), an
increase of 13,152%, compared to net income of $0.5 million, or $0.01 per
share (diluted), in the same period last year.

The improvement of the Company's results in the fourth quarter of 2012 was
mainly due to four factors. First, sales increased significantly by 263%
compared to the same period last year, as a result of (i) the Company's
Shenzhen manufacturing facility began mass production of high-resolution
liquid crystal display modules ("LCMs") for smartphones in September 2012 and
(ii) the Company's Wuxi manufacturing facility continued to ramp up its
production of high-resolution LCMs for tablets. Second, the Company had $4
million in other and interest income, including $0.3 million of incentive
allowance from the PRC government, $0.6 million in interest income and $1
million in exchange gain. Third, the Company has improved its gross and net
profits by discontinuing certain sales orders that have had poor performance.
Fourth, the Company enjoyed benefit from certain exemption treatment and tax
reduction for its Wuxi operation and a tax benefit of $0.6 million, as a
result of tax losses carried forward from last year.

With respect to the discontinued low profit margin business, for the three
months ended December 31, 2012 and December 31, 2011, the net sales were $0.1
million and $16 million, gross profit were nil and $1.1 million, and operating
profit (loss) were $0.6 million and ($3.5 million), respectively. For the
twelve months ended December 31, 2012 and December 31, 2011, the net sales
were $24 million and $77 million, gross (loss) profit were ($0.6 million) and
$9 million, and operating loss were $2 million and nil, respectively. Please
see page 7 of the Company's Condensed Consolidated Statements of Operations
for further details. This information has also been published on the Company's
website at http://www.namtai.com/quarterly/quarterly.htm in the quarterly
earnings report of Q4 2012 on page 7, Condensed Consolidated Statements of
Operations.

EXPANSION PROJECT

a) Expansion Project in Wuxi City, PRC

The Company has decided to discontinue its FPC business after the first
quarter of 2013 with the spare capacity redeployed to increase the production
capacity for LCMs. The Company has also applied to convert the zoning of a
part of the land owned by it in Wuxi city from industrial to residential and
to build certain accommodation facilities on that land for self-use.

b) Expansion Project in Shenzhen City, PRC

To accommodate Shenzhen government's city re-zoning plan, the Company plans to
relocate its current production facility in Shenzhen city to a new location
owned by it in Guangming Hi-Tech Industrial Park of approximately 1.2 million
square feet (double the size of current facilities). The Company currently
anticipates that it will take approximately three years to complete this
relocation and expansion project.

COMPANY OUTLOOK

The Company's revenue increased year-over-year 118.6% for 2012, when compared
with 2011, excluding the contribution from the discontinued business. This
significant revenue increase was attributable to the ramp up of the production
of high-resolution LCMs for tablets at the Company's Wuxi facility in June
2012 and the commencement of mass production of high-resolution LCMs for
smartphones at the Company's Shenzhen facility in September 2012. After the
final evaluation on the viability of its flexible printed circuit ("FPC")
business based on its performance in the third quarter of 2012, the Company
has also decided to discontinue its FPC business by the end of March 2013,
which business has been generating losses since its initial production.

In the fourth quarter of 2012, the Company's revenue increased by 263%
compared to the fourth quarter of 2011. The Company is currently coordinating
with its existing customers, as essential production partners, to further
diversify the Company's product portfolio by developing and manufacturing new
model for the existing end-buyer and also extend to other new customers' LCM
products used in smartphones, tablets, ultrabook computers and automobiles,
which the Company believes, with confidence, will continue to drive its growth
in 2013 of its existing production capacity and production facilities.

Due to the high level of competition in the market for tablets, smartphones
and ultrabook computers, the Company's management expects its customer orders
will continue to fluctuate and its gross profit would also be under more
pressure in 2013. In addition, the Company may also continue to face certain
risks including, but not limited to, the appreciation of renminbi, inflation
in China, labor shortage, materials shortage, customers and suppliers'
inability to meet their contractual obligations, financial difficulties
resulting in customers and suppliers' illiquidity and global political events
and actions, including war and terrorism. These risks could affect the
Company's sales, profit margin and loss of investments.

FOURTH QUARTER RESULTS ANALYST CONFERENCE CALL AND WEBCAST

The Company will hold a conference call on Monday, January 28, 2013, at 8:30
a.m. (EST). Shareholders, media and interested investors are invited to listen
to the live webcast at www.namtai.com by clicking on the conference call link
(under events) or over the phone by dialing 877.407.3140 just prior to its
start time. International participants may dial 201.689.8473. Analysts who
wish to receive the toll free dial-in number for this conference call are
invited to contact us at 212.245.4577 or via email to kevin@cameronassoc.com
not later than 5:00 p.m. (EST) on Friday, January 25, 2013.

PAYMENT OF QUARTERLY DIVIDENDS FOR 2013

As announced on November 5, 2012, the Company has set the payment schedule of
quarterly dividends for 2013. The dividend for Q1 2013 was paid on January 18,
2013. The following table updates the previously announced schedule for
declaration and payment of quarterly dividends in 2013.

The Company hereby clarifies that its shareholders of record on March 31, 2013
and June 30, 2013, a Sunday, will be identical to its shareholders of record
at the close of business on March 29, 2013 and June 28, 2013 respectively,
being the immediately preceding Friday.

Quarterly                                            Dividend
Payment   Record Date        Payment Date                        Status
                                                     (per share)
Q1 2013   December 31, 2012  January 18, 2013        $0.15       PAID
Q2 2013   March 31, 2013     before April 30, 2013   $0.15
Q3 2013   June 30, 2013      before July 31, 2013    $0.15
Q4 2013   September 30, 2013 before October 31, 2013 $0.15
Total for Full Year 2013                             $0.60

The Company's decision to continue dividend payments in 2013 does not
necessarily mean that cash dividend payments will continue thereafter. Whether
future dividends will be declared will depend upon Company's future growth and
earnings, of which there can be no assurance, and the Company's cash flow
needs for further expansion. Accordingly, there can be no assurance that cash
dividends on the Company's common shares will be declared beyond those
declared for 2013, what the amounts of such dividends will be or whether such
dividends, once declared for a specific period, will continue for any future
period, or at all.

PROPOSED SCHEDULE OF RELEASE OF QUARTERLY FINANCIAL RESULTS FOR 2013

To enhance the efficiency of delivering the Company's quarterly financial
results to the market, the Company's management has decided to accelerate the
schedule of release of quarterly financial results for 2013 to be one week
earlier than before. Details of the expected quarterly release dates are as
follows:-

Announcements of Financial Results
Quarter   Date of release
Q1 2013   April 29, 2013 (Mon)
Q2 2013   July 29, 2013 (Mon)
Q3 2013   October 28, 2013 (Mon)
Q4 2013   January 27, 2014 (Mon)

ANNUAL GENERAL MEETING

The 2013 Annual General Meeting has been scheduled to be held on Friday, May
31, 2013 at 11:30 a.m. (China Standard Time) at the Company's Shenzhen
facility in the location of Gushu Industrial Estate, Xixiang, Baoan, Shenzhen,
People's Republic of China. More detailed information of the AGM will be
disclosed in Proxy Statement which will be released in early May 2013.

FORWARD-LOOKING STATEMENTS AND FACTORS THAT COULD CAUSE OUR SHARE PRICE TO
DECLINE

Certain statements included in this press release and the subsequent
conference call, other than statements of historical fact, are forward-looking
statements. Forward-looking statements generally can be identified by the use
of forward-looking terminology such as "may", "will", "expect", "intend",
"estimate", "anticipate", "plan", "seek" or "believe". These forward-looking
statements, which are subject to risks, uncertainties, and assumptions, may
include projections of our future financial performance based on our growth
strategies and anticipated trends in our business. These statements are only
predictions based on our current expectations about future events. There are
important factors that could cause our actual results, level of activity,
performance, or achievements to differ materially from the results, level of
activities, performance, or achievements expressed or implied by the
forward-looking statements, including, but not limited to, a deterioration of
the markets for the Company's customers' products and the global economy as a
whole, which could negatively impact the Company's revenue and the ability of
the Company's customers to confirm prior orders or pay for the Company's
products; the financial resources and credit rating of Company's customers
under the current global recession; the effects that current credit and market
conditions could have on the liquidity and financial condition of our
customers and suppliers, including any impact on their ability to meet their
contractual obligations; the sufficiency of the Company's cash position and
other sources of liquidity to operate its business; the negative effects of
increased competition pressure on the Company's revenues and margins;
component quality or shortage, whether or not cause by customers change in
specifications, delay in the Company's ability to take possession of land for
development of additional production facilities, continued inflation and
appreciation of the Renminbi against the US dollar; rising labor costs in
China and changes in the labor supply and labor relations our ability to win
additional government business. In particular, you should consider the risks
outlined under the heading "Risk Factors" in our most recent Annual Report on
Form 20-F and in our Current Report filed from time to time on Form 6-K. The
Company's decision to continue dividend payments in 2013 does not necessarily
mean that dividend payments will continue thereafter. Whether future dividends
will be declared depend upon the Company's future growth and earnings, of
which there can be no assurance, as well as the Company's cash flow needs for
further expansion. Accordingly, there can be no assurance that cash dividends
on the Company's common shares will be declared beyond those declared for
2013, what amount that dividends may be or whether such dividends, once
declared for a specific period, will continue for any future period, or at
all, Although we believe the expectations reflected in the forward-looking
statements are reasonable, we cannot guarantee future results, level of
activity, performance, or achievements. You should not rely upon
forward-looking statements as predictions of future events. These
forward-looking statements apply only as of the date of this press release and
the subsequent investors conference call; as such, they should not be unduly
relied upon as circumstances change. Except as required by law, we are not
obligated, and we undertake no obligation, to release publicly any revisions
to these forward-looking statements that might reflect events or circumstance
occurring after the date of this release or those that might reflect the
occurrence of unanticipated events.

ABOUT NAM TAI ELECTRONICS, INC.

We are an electronics manufacturing and design services provider to a select
group of the world's leading OEMs of telecommunications, consumer electronic
and automotive products. Through our electronics manufacturing services
operations, we manufacture electronic components and subassemblies, including
LCD modules, image-sensor modules and FPCAs. These components are used in
numerous electronic products, including smartphones, tablets, automotive,
laptop computers, digital cameras, electronic toys, handheld video game
devices, and entertainment devices. We also manufacture finished products,
including mobile phone accessories, home entertainment products and
educational products. We assist our OEM customers in the design and
development of their products and furnish full turnkey manufacturing services
that utilize advanced manufacturing processes and production technologies.

Nam Tai Electronics, Inc. is a corporation registered in the British Virgin
Islands and listed on the New York Stock Exchange (Symbol "NTE"). All the
Company's operations are located in the People's Republic of China.

NAM TAI ELECTRONICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE PERIODS ENDED DECEMBER 31, 2012 AND 2011
(In Thousands of US Dollars except share and per share data)
                          Three months ended         Year ended
                          December 31                December 31
                          2012           2011        2012          2011
Net sales ^(1^)           $ 468,464      $ 129,073   $ 1,147,923   $ 525,077
Cost of sales             419,500        127,835     1,042,146     505,825
Gross profit              48,964         1,238       105,777       19,252
Costs and expenses
General and
administrative expenses   10,362         5,657       28,440        21,439
^(2^)
Selling expenses          279            1,023       2,666         3,919
Research and development  96             661         1,364         2,297
expenses
Impairment loss on        -              2,951       -             2,951
goodwill
                          10,737         10,292      32,470        30,606
Operating income (loss)   38,227         (9,054)     73,307        (11,354)
Other income , net ^(3^)  3,335          5,721       9,787         9,184
Interest income           632            609         2,112         2,728
Interest expenses         (32)           -           (292)         -
Income (loss) before      42,162         (2,724)     84,914        558
income tax
Income tax expenses       (5,661)        (401)       (17,299)      (972)
Income (loss) from        36,501         (3,125)     67,615        (414)
continuing business
Income (loss) from
discontinued business,    105            (2,486)     (694)         919
net of tax
Consolidated net income   $  36,606     $ (5,611)  $  66,921    $  505
(loss)
Basic net income (loss)                  -
per share:
Basic income (loss) per                  $  
share from continuing     $    0.81   (0.07)      $    1.51  $  (0.01)
business
Basic income (loss) per                  $  
share from discontinued   $    0.01   (0.06)      $   (0.02) $  0.02
business
Basic net income (loss)   $  0.82      $         $    1.49  $  0.01
per share                                (0.13)
Diluted net income (loss)
per share:
Diluted income (loss) per                $  
share from continuing     $  0.80      (0.07)      $    1.49  $  (0.01)
business
Diluted income (loss) per                $  
share from discontinued   $  0.00      (0.06)      $   (0.01) $  0.02
business
Diluted net income (loss) $  0.80      $         $    1.48  $  0.01
per share                                (0.13)
Weighted average number of shares ('000)
Basic                     44,804         44,804      44,804        44,804
Diluted                   45,692         44,825      45,345        44,841


Notes:
(1) The sales from the discontinued business were $0.1 million and $16.2
million for the three months ended December 31, 2012 and 2011 respectively.
(2) The Company management adopted the employee stock option scheme with total
1.43 million shares options granted, in which 600,000 shares options have an
exercise price of $6.66 and 831,000 share options with an exercise price of
$5.63. The management has  given up the cash incentive bonus , which were
reversed in 2012.
(3) The other & interest income of $4.0 million from continuing businesses in
the fourth quarter of 2012 included cash incentive bonus reversal of $0.7 
million for 2011, income from scrap of $0.5  million, incentive allowance of
$0.3 million from government and interest income & exchange gain of $1.6
million.



NAM TAI ELECTRONICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
AS AT DECEMBER 31, 2012 AND DECEMBER 31, 2011
(In Thousands of US Dollars)
                                                    December 31   December 31
                                                    2012          2011
ASSETS
Current assets:
 Cash and cash equivalents                        $  157,838  $  118,510
Fixed deposits maturing over three months           49,824        34,825
 Accounts and notes receivable, net               155,557       65,754
 Derivative financial instrument                  99            -
 Inventories                                      55,638        26,515
 Prepaid expenses and other receivables           29,956        14,334
 Finance lease receivable - current               3,583         -
 Deferred tax assets – current                    457           3,101
 Income taxes recoverable                         169           -
 Current assets from discontinued business        112           34,179
 Total current assets                    453,233       297,218
Property, plant and equipment, net                  151,555       137,393
 Finance lease receivable – non current   8,553         -
Land use rights                                     16,532        11,981
Deposits for property, plant and equipment          -             4,247
Deferred tax assets – non current                   5,420         5,922
Other assets                                        751           982
 Total assets                            $  636,044  $  457,743
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable                                       $    4,273 $   268
 Accounts payable                                  187,440       74,429
 Trust Receipt loans                               3,558         -
 Accrued expenses and other payables               41,217        35,980
 Short term bank borrowings                        4,824         -
 Dividend payable                                  26,882        12,545
 Income tax payable                                3,164         656
 Current liabilities from discontinued business    515           10,280
 Total current liabilities               271,873       134,158
 Deferred tax liabilities                         1,379         1,379
 Total liabilities                       273,252       135,537
EQUITY
Shareholders' equity:
 Common shares                                    448           448
 Additional paid-in capital                       287,602       287,055
 Retained earnings                                74,750        34,711
 Accumulated other comprehensive loss             (8)           (8)
 Total shareholders' equity                   362,792       322,206
 Total liabilities and shareholders'     $  636,044   $  457,743
equity





NAM TAI ELECTRONICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE PERIODS ENDED DECEMBER 31, 2012 AND 2011
(In Thousands of US Dollars)
                                         Three months ended  Year ended
                                         December 31
                                                             December 31
                                         2012      2011      2012     2011
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income (loss)           $       $       $       $  505
                                         36,606    (5,611)  66,921
Adjustments to reconcile net income
(loss) to net cash
provided by (used in) operating
activities:
Depreciation and amortization of
property, plant and equipment, land use  8,519     2,808     26,133   16,068
rights and other assets
Impairment loss on goodwill              -         2,951     -        2,951
(Reversal) provision for inventories     (26)      19        1,282    83
(Reversal) provision for goods return    (201)     -         402      -
(Reversal) provision for bad debts       (561)     (89)      45       5
(Gain) loss on disposal of property,     (4)       186       (810)    231
plant and equipment
(Gain) loss on derivative financial      (99)      -         57       -
instrument
Share-based compensation expenses        164       -         547      112
Decrease (increase) in deferred income   258       101       5,460    (2,538)
taxes
Unrealized exchange gain                 (507)     (1,642)   (648)    (4,134)
Changes in current assets and
liabilities:
Decrease (increase) in accounts          1,715     (6,150)   (81,245) (298)
receivable
Decrease (increase) in inventories       50,896    (2,842)   (25,064) (2,881)
Decrease (increase) in prepaid expenses  4,386     (8,967)   (10,030) (14,207)
and other receivables
(Increase) decrease in income tax        (2)       108       (169)    105
recoverable
(Decrease) increase in notes payable     (33)      268       4,005    268
(Decrease) increase in accounts payable  (55,101)  4,077     104,385  (1,535)
Increase in accrued expenses and other   1,132     3,879     15,340   4,173
payables
Increase (decrease) in income tax        437       (2,099)   3,160    (4,228)
payable
 Total adjustments                     10,973    (7,392)   42,850   (5,825)
Net cash provided by (used in) operating $        $        $       $ 
activities                               47,579   (13,003)  109,771 (5,320)





NAM TAI ELECTRONICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE PERIODS ENDED DECEMBER 31, 2012 AND 2011

(In Thousands of US Dollars)
                        Three months  ended        Year ended
                       December 31
                                                      December 31
                       2012           2011           2012         2011
 CASH FLOWS FROM
 INVESTING ACTIVITIES
 Purchase of property,
 plant and equipment   $  (5,407)   $ (38,111)     $  (58,444) $  (59,858)
 and land use rights
 Decrease (increase)
 in deposits for       -              16,421         4,543        (4,066)
 purchase of property,
 plant and equipment
 Increase in other    -              (607)          -            (713)
 assets
 Payment for
 derivative financial  -              -              (156)        -
 instrument
 Proceeds from
 disposal of property, -              52             264          52
 plant and equipment
 and other assets
 Cash received from
 finance lease         627            -              1,864        -
 receivable
 Increase in fixed
 deposits maturing     (45,953)       (437)          (14,999)     (34,825)
 over three months
 Net cash used in      $  (50,733)  $  (22,682)  $  (66,928) $  (99,410)
 investing activities
 CASH FLOWS FROM
 FINANCING ACTIVITIES
 Cash dividends paid   $   (3,136) $            $  (12,545) $  (8,961)
                                      (2,240)
 Proceeds from Trust   3,558          -              3,558        -
 Receipt loans
  Proceeds from bank  4,824          -              4,824        -
 loans
 Net cash provided by                 $  
 (used in) financing   $   5,246    (2,240)       $  (4,163) $  (8,961)
 activities
 Net increase
 (decrease) in cash    2,092          (37,925)       38,680       (113,691)
 and cash equivalents
 Cash and cash
 equivalents at        155,239        154,793        118,510      228,067
 beginning of period
 Effect of exchange                   1,642
 rate changes on cash  507                           648          4,134
 and cash equivalents                 
 Cash and cash
 equivalents at end of $  157,838    $  118,510    $  157,838  $  118,510
 period





NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIODS ENDED DECEMBER 31, 2012 AND 2011
(In Thousands of US Dollars)
1. Accumulated other comprehensive income represents foreign currency
translation adjustments. The comprehensive income (loss) was $36,606 and
($5,611) for the three months ended December 31, 2012 and 2011 respectively.
2. Business segment information:
The Company's business is separated into the Telecommunication Components
Assembly – ("TCA") and Flexible Printed Circuit ("FPC") segments in 2012.
Since the first quarter of 2012, the Consumer Electronic Communication
Products ("CECP") segment fell below the threshold prescribed under FASB ASC
280-10-50-12 and the CECP segment was combined with the TCA segment. In the
fourth quarter of 2012, the net loss from the FPC segment was above the
threshold prescribed under FASB ASC 280-10-50-12 and the FPC segment was
separated from the TCA segment.
                       Three months ended           Year ended
                       December 31                  December 31
                       2012         2011            2012           2011
Net sales CONTINUING
BUSINESS:
 - TCA               $ 459,618    $ 123,497       $ 1,118,196    $ 509,124
 - FPC               8,846        5,576           29,727         15,953
Total net sales from   $ 468,464    $ 129,073       $ 1,147,923    $ 525,077
continuing business
Net (LOSS) INCOME FROM
CONTINUING BUSINESS
- TCA                  $  38,799   $   3,491     $ 75,723      $ 17,465
- FPC                  (2,030)      (4,327)         (6,835)        (14,022)
 - Corporate          (268)        (2,289)         (1,273)        (3,857)
Total net income
(loss) from continuing $  36,501   $  (3,125)    $  67,615     $  (414)
business
                                                    Dec. 31, 2012  Dec. 31,
                                                                   2011
Identifiable assets by SEGMENT:
- TCA                                               $ 477,083      $ 239,734
- FPC                                               12,912         50,915
- Corporate                                         145,937        132,915
Total assets                                  $ 635,932      $ 423,564





NAM TAI ELECTRONICS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIODS ENDED DECEMBER 31, 2012 AND 2011
(In Thousands of US Dollars)
3. A summary of the net sales, net income (loss) and long-lived assets by
geographical areas is as follows:
                          Three months ended        Year ended
                          December 31               December 31
                          2012       2011           2012           2011
Net sales from operations
within:
 - PRC, excluding Hong
Kong:
 Unaffiliated  $ 468,464  $ 129,073      $ 1,147,923    $ 525,077
customers
 Intercompany  14,595     133            56,121         945
sales
 - Intercompany         (14,595)   (133)          (56,121)       (945)
eliminations
Total net sales           $ 468,464  $ 129,073      $ 1,147,923    $ 525,077
net Income (LOSS) from
operations within:
 - PRC, excluding Hong  $  36,957 $    (311)  $  70,205     $   5,951
Kong
 - Hong Kong            (456)      (2,814)        (2,590)        (6,365)
Total net income (loss)   $  36,501 $ (3,125)     $  67,615     $   
                                                                   (414)
                                                    Dec. 31,  2012 Dec. 31,
                                                                   2011
LONG-LIVED assets WITHIN:
- PRC, excluding Hong                               $ 163,794      $ 144,788
Kong
- Hong Kong                                         4,293          4,586
 Total long-lived                              $ 168,087      $ 149,374
assets



Please refer to the Nam Tai website (www.namtai.com) or the SEC website
(www.sec.gov) for Nam Tai press releases and financial statements.

SOURCE Nam Tai Electronics, Inc.

Website: http://www.namtai.com
Contact: Investor relations contact: Mr. Kevin McGrath, Managing Partner of
Cameron Associates, +1-212-245-4577, kevin@cameronassoc.com
 
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