Nam Tai Electronics, Inc. Q1 2013 Sales up 102%, Gross profit margin at 4.1%

 Nam Tai Electronics, Inc. Q1 2013 Sales up 102%, Gross profit margin at 4.1%

PR Newswire

SHENZHEN, China, April 29, 2013

SHENZHEN, China, April 29, 2013 /PRNewswire/ --Nam Tai Electronics, Inc.
("Nam Tai" or the "Company")(NYSE Symbol: NTE) today announced its unaudited
results for the first quarter ended March 31, 2013.

KEY HIGHLIGHTS
(In thousands of US Dollars, except per share data, percentages and as
otherwise stated)

                                         Quarterly Results
                                         Q1 2013  Q1 2012  YoY(%)^(c)
Net sales ^ (a)                          $177,476 $87,814  102
Gross profit ^ (a)                       $7,339   $4,632   58
% of sales                               4.1%     5.3%     -
Operating income (loss) ^ (a)            $1,109   $(866)   -
% of sales                               0.6%     (1.0%)   -
per share (diluted) ^                    $0.02    $(0.02)  -
Net income (loss) ^ (^b^)                $4,984   $(3,634) -
% of sales                               2.8%     (4.1%)   -
Basic earnings (loss) per share          $0.11    $(0.08)  -
Diluted earnings (loss) per share        $0.11    $(0.08)  -
Weighted average number of shares ('000)
Basic                                    45,069   44,804   -
Diluted                                  45,709   44,832

Notes:
(a) The net sales, gross profit and operating income (loss) have excluded
the discontinued business of  Liquid Crystal Display Panels ("LCDP") and
Flexible Printed Circuit ("FPC"). For the three months ended March 31, 2013
and March 31, 2012, the discontinued operations recognized net sales of $7.7 
million and $17.7 million, a gross profit  (loss) of  0.3 million and ($3.1)
million, and an operating income (loss)  of $0.1 million and ($5.6) million
respectively.  (Please see page 7 of the Company's Condensed Consolidated
Statements of Comprehensive Income for  details).
(b) Net income for the three months ended March 31, 2013 has included
income from discontinued business  (net of tax) of $0.1 million, layoff
compensation of $1.3 million due to simplification of organization structure
and other and interest income of $3.4 million, which consisted of legal
liability provision on legal case reversal of $1.0 million, income from
Sanctioned Payment of $0.8 million for closing the legal dispute and interest
income of $0.8 million.
(c) Percentage change is not applicable if either of the two periods
contains a loss.
(d) This information has been published on the Company's website
http://www.namtai.com/quarterly/quarterly.htm under the quarterly earnings
report of Q1 2013 on page 7, Condensed Consolidated Statements of
Comprehensive Income..

SUPPLEMENTARY INFORMATION (UNAUDITED) IN THE FIRST QUARTER OF 2013

1. Quarterly Sales
(In thousands of US Dollars, except percentage information)

                                 YoY(%)      YoY(%)
Quarter      2013     2012
                                 (Quarterly) (Quarterly accumulated)
1^st Quarter $177,476 $87,814    102.1       102.1
2^nd Quarter -        $198,425
3^rd Quarter -        $372,339
4^th Quarter -        $459,618
Total        $177,476 $1,118,196

Note:
* The above sales have excluded certain discontinued businesses. Please see
page 7 of the Company's Condensed Consolidated Statements of Comprehensive
Income 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 Q1 2013 on page 7, Condensed Consolidated Statements of
Comprehensive Income.

2. Key Highlights of Financial Position



                                  As at March 31,               As at December
                                                                31,
                                  2013           2012^(a)       2012^(a)
Cash on hand and Fixed deposits   $198.7 million $144.6 million $207.7 million
maturing over three months
Ratio of cash^(b) ^ to current    1.01           1.07           0.58
liabilities
Current ratio                     2.36           2.36           1.69
Ratio of total assets to total    3.47           3.41           2.33
liabilities
Return on equity                  5.4%           (4.5%)         19.5%
Ratio of total liabilities to     0.40           0.41           0.75
total equity
Debtors turnover                  45 days        50 days        50 days
Inventory turnover                16 days        36 days        19 days
Average payable period            50 days        72 days        66 days

Notes:
(a) The Company's ratios as at March 31, 2012 and December 31, 2012 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 Q1 2013 on page 8, Condensed Consolidated Balance Sheets.
(b) According to the definition of "Balance Sheet" under the Financial
Accounting Standard Board ("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 with amount of $48.1 million,
$5.2 million and $49.8 million as at March 31, 2013, March 31, 2012 and
December 31, 2012 are not classified as cash on hand but require separate
disclosure.

OPERATING RESULTS

Net sales in the first quarter of 2013 were $177.5 million, an increase of
102.1%, compared to the net sales of $87.8 million for the same quarter of
2012. Gross profit in the first quarter of 2013 was $7.3 million, an increase
of 58.4%, compared to $4.6 million in the first quarter of last year. Gross
profit margin for the first quarter of 2013 was 4.1%, 1.2% down from 5.3% in
the first quarter of last year. Operating income for the first quarter of 2013
was $1.1 million, compared to an operating loss of $0.9 million in the first
quarter of last year. Net income in the first quarter of 2013 was $5.0
million, or $0.11 per diluted share, compared to the net loss of $3.6 million,
or loss of $0.08 per diluted share, in the first quarter of last year.

The improvement of the Company's results in the first quarter of 2013 was
mainly due to three factors. First, sales revenue increased by 102.1% compared
to the same period of last year, as a result of the Company's Shenzhen
manufacturing facility began production of high-resolution Liquid Crystal
Display Modules ("LCMs") for smartphones from September 2012. Second, the
Company had $3.4 million in other and interest income, including $1.0 million
reversal of legal liability provision for litigation, $0.8 million income from
certain sanctioned payment for ending the legal dispute and $0.8 million
interest income. Third, the Company has improved its operating and net income
through streamlining its organization structure by reducing the headcount and
success in its cost control. Nevertheless, the Company's gross profit
decreased as a result of the Company lowering the quotation unit price due to
customers' cost down requirement resulting from the weakest consumer market.

With respect to the discontinued low profit margin business, for the three
months ended March 31, 2013 and March 31, 2012, the net sales were $7.7
million and $17.7 million, gross profit (loss) were $0.3 million and ($3.1)
million, and operating income (loss) were $0.1 million and ($5.6) million
respectively. The general and administrative expenses for the three months
ended March 31, 2013 included net gain on disposal of FPC assets of $0.2
million. Please see page 7 of the Company's Condensed Consolidated Statements
of Comprehensive Income 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 Q1 2013 on page 7, Condensed Consolidated Statements of Comprehensive
Income.

COMPANY OUTLOOK

The Company's revenue increased by 102.1% in the first quarter of 2013
compared to the first quarter of 2012, excluding the contribution from the
discontinued business. This revenue increase was attributable to the
commencement of production of high-resolution LCMs for smartphones at the
Company's Shenzhen facility since 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 discontinued its FPC
business as of the end of March 2013, which business has been generating
losses since its initial production.

The Company depends on a small number of customers. In the first quarter of
2013, as a result of the weak consumer market, LCM orders placed by the
Company's major customers were significantly lower than the customers'
original forecast. The Company was also compelled to lower the unit sales
prices in response to its customers' cost down requirements. There was also
indication that orders placed by these customers could be cancelled with short
notice. In response to these adverse market conditions, the management has
made efforts to minimize potential losses resulting from cancellation and
fluctuation of orders by its customers and decided to halt capital investment
into technology platforms that cannot produce steady income streams. Unless
market conditions improve to the extent that the Company has confidence to
achieve a reasonable gross profit and there is no risk of customer confirmed
orders being cancelled or significantly reduced or other strategic
alternatives are found, the Company may have to halt its best quality LCM
production operations service in both its Shenzhen and Wuxi manufacturing
facilities by the end of June 2013 in order to minimize further losses and
preserve cash. The Company's LCM operations comprise the core of the Company's
existing businesses.

The Company is exploring all commercially viable alternatives to maintain its
LCM operations, including strategic or technological alliances with
complementary business operations, such as with backlight and touch key panel
manufacturers. However, there is no assurance that the Company will be able to
reach an agreement with these potential business partners on favorable and
satisfactory terms.

In terms of the Company's other long-lived assets, the management plans to
redevelop a parcel of land of approximately 530,000 sq.ft. that encompasses
its existing Shenzhen facility in light of Shenzhen government's recently
announced city rezoning project to convert this area into a high-end
commercial district. The redeveloped land may comprise of multi-floor high-end
office buildings, hotels and shopping malls with a total floor plan of
approximately 3,000,000 sq.ft for rent. The location of this parcel of land
is between the Shenzhen airport, the third largest airport in China, and the
Qianhai Bay Special Economic Zone. The Qianhai Bay Special Economic Zone is
the result of a long-term joint collaboration and development plan between
Hong Kong and Shenzhen governments and will take on significance in China's
economic development through the preferential tax rates and incentives
policies to be granted by the central government. Based on the development
plan and other publicly available information from the PRC and Shenzhen
governments, our management believes that it is likely that within the next 10
years this area will experience one of the fastest growth rates in the world.
The distance between Qianhai Bay Special Economic Zone and Shenzhen airport is
approximately 25 kilometers and our land is situated in the middle. The
extensive incentives that the government is granting to land owner to
accommodate the city rezoning plan and future tax concessions will
significantly benefit the Company's interest. The management intends to engage
professional experts to conduct feasibility study, evaluate commercial value
and formulate plans in the best interest of the Company and will seek board
approval prior to commencing the redevelopment. The Company considers its
existing cash flow sufficient to finance the first phase of development
development that will utilize up to one quarter of the available land fora
building with a total floor plan of approximately 700,000 sq.ft. However,
there can be no assurance that the Company will be able to obtain the
requisite permits and approvals from relevant government authorities in
relation to the redevelopment of the land, or to successfully redevelop the
land.

Due to the high level of competition and weak consumer demand in the market
for tablets, smartphones and ultrabook computers, the Company's management
expects its customer orders will continue to be volatile with increasing
pressure to reduce unit sales price. As a result, the Company's gross profit
will also be under substantial pressure in 2013. Furthermore, if the
customers, particularly the major LCM customers of the Company continue to
experience a decline in the demand for the Company's products as a result of
the prevailing economic environment and other factors, including the Company's
unwillingness to continue capital investment in technology platforms that
cannot produce steady income streams, the electronic manufacturing services,
or EMS, that the Company provides to these customers could be curtailed or
possibly even terminated.In addition, the Company may also continue to face
certain risks including, but not limited to, the appreciation of renminbi,
inflation in China, 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.

FIRST QUARTER RESULTS ANALYST CONFERENCE CALL AND WEBCAST

The Company will hold a conference call on Monday, April 29, 2013, at 8:30
a.m. (EDT). 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. (EDT) on Friday, April 26, 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 Q2 2013 was paid on April 19,
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 28, 2013 and June 28, 2013 respectively,
being the immediately preceding Friday.



                                                            Dividend
Quarterly Payment Record Date        Payment Date                       Status
                                                            (per share)
Q1 2013           December 31, 2012  January 18, 2013       $0.15       PAID
Q2 2013           March 31, 2013     April 19, 2013         $0.15       PAID
Q3 2013           June 30, 2013      before July 31, 2013   $0.15
Q4 2013           September 30, 2013 before October 31,     $0.15
                                     2013
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 Namtai Industrial Estate, 2 Namtai Road, Gushu,
Xixiang Street, Baoan District, Shenzhen, People's Republic of China.

The record date for determining shareholders entitled to vote at its annual
meeting was April 26, 2013 and the proxy materials will be released to
shareholders on April 30, 2013.

ANNUAL REPORT

The Company filed its 2012 Annual Report on Form 20-F with the United States
Securities and Exchange Commission ("SEC") on March 15, 2013 Washington D.C.
time. The Company's Annual Report on Form 20-F includes its audited financial
statements for its fiscal year ended December 31, 2012. The Company has posted
its 2012 Annual Report on Form 20-F on its website and the Report can be
accessed electronically at
http://www.namtai.com/sites/default/files/2012form20F.pdf. The Report is also
available on the SEC's website at http://www.sec.gov. The Company will also
deliver, within a reasonable time after request, a paper copy of its 2012
Annual Report, including its complete audited financial statements, free of
charge, to any shareholder upon request. To request a paper copy, please
contact the Company by email at kevin@cameronassoc.com to the attention of Mr.
Kevin McGrath, Nam Tai's Investor Relations, Re: 2012 Annual Report on Form
20-F.

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 COMPREHENSIVE INCOME
FOR THE PERIODS ENDED MARCH 31, 2013 AND 2012
(In Thousands of US Dollars except share and per share data)
                                                    Three months ended

                                                    March 31
                                                    2013          2012
Net sales ^(1^)                                     $ 177,476    $ 87,814
Cost of sales                                       170,137       83,182
Gross profit                                        7,339         4,632
Costs and expenses
General and administrative expenses ^(2^)           6,089         4,574
Selling expenses                                    130           475
Research and development expenses                   11            449
                                                    6,230         5,498
Operating income (loss)                             1,109         (866)
Other income , net ^(3^)                            2,667         1,541
Interest income ^(3^)                               779           453
Interest expenses                                   (58)          (46)
Income before income tax                            4,497         1,082
Income tax recovery (expenses)                      387           (686)
Income from continuing business                     4,884         396
Income (loss) from discontinued business, net of    100           (4,030)
tax
Consolidated net income (loss)                      4,984         (3,634)
Other comprehensive income                          -             -
Consolidated comprehensive income (loss)            $   4,984  $  (3,634)
Basic net income (loss) per share:
Basic income per share from continuing business     $    0.11 $    0.01
Basic income (loss) per share from discontinued     $    0.00 $   (0.09)
business
Basic net income (loss) per share                   $    0.11 $   (0.08)
Diluted net income (loss) per share:
Diluted income per share from continuing business   $    0.11 $    0.01
Diluted income (loss) per share from discontinued   $    0.00 $   (0.09)
business
Diluted net income (loss) per share                 $    0.11 $   (0.08)
Weighted average number of shares ('000)
Basic                                               45,069        44,804
Diluted                                             45,709        44,832

Notes:
(1) The sales from the discontinued business were $7.7 million and $17.7
million for the three months ended March 31, 2013 and 2012 respectively.
(2) The G&A expenses for the three months ended March 31, 2013 has
included layoff compensation of $1.3 million due to simplification of
organization structure.
(3) The other and interest income of $3.4 million from continuing business
in the first quarter of 2013 included $1.0 million reversal of legal liability
provision, income of $0.8 million from Sanctioned Payment for closing the
legal dispute and interest income of $0.8 million.



NAM TAI ELECTRONICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
AS AT MARCH 31, 2013 AND DECEMBER 31, 2012
(In Thousands of US Dollars)
                                                 March 31        December 31
                                                 2013            2012
ASSETS
Current assets:
Cash and cash equivalents                        $  150,552    $  157,838
Fixed deposits maturing over three months        48,135          49,824
 Accounts and notes receivable, net            88,299          152,104
 Derivative financial instrument               -               99
 Inventories                                   29,997          52,553
 Prepaid expenses and other receivables        28,633          29,522
 Finance lease receivable – current            3,665           3,583
 Deferred tax assets – current                 589             457
 Income taxes recoverable                      169             169
 Current assets from discontinued business     1,559           13,024
 Total current assets                 351,598         459,173
Property, plant and equipment, net               138,387         146,039
Finance lease receivable – non current           7,695           8,553
Land use rights                                  16,436          16,532
Deferred tax assets – non current                6,737           5,420
Other assets                                     107             327
 Total assets                         $  520,960    $  636,044
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable                                    $      25 $    3,978
 Accounts payable                               93,779          183,484
 Trust Receipt loans                            4,444           3,558
 Accrued expenses and other payables            25,293          38,273
 Short term bank borrowings                     -               4,824
 Dividend payable                               20,162          26,882
 Income tax payable                             3,042           3,164
 Current liabilities from discontinued business 2,003           7,710
 Total current liabilities            148,748         271,873
 Deferred tax liabilities                      1,379           1,379
 Total liabilities                    150,127         273,252
EQUITY
Shareholders' equity:
 Common shares                                 453             448
 Additional paid-in capital                    290,654         287,602
 Retained earnings                             79,734          74,750
 Accumulated other comprehensive loss          (8)             (8)
 Total shareholders' equity                370,833         362,792
Total liabilities and shareholders'      $  520,960     $  636,044
equity



NAM TAI ELECTRONICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE PERIODS ENDED MARCH 31, 2013 AND 2012
(In Thousands of US Dollars)
                                                     Three months ended

                                                     March 31
                                                     2013         2012
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income (loss)                       $  4,984   $  (3,634)
Adjustments to reconcile net income (loss) to net
cash
provided by (used in) operating activities:
Depreciation and amortization of property, plant     8,709        4,194
and equipment, land use rights and other assets
(Reversal) provision for inventories                 (75)         1,329
Loss on purchase commitments                         -            924
Reversal for goods return                            (1)          -
(Gain) loss on disposal of property, plant and       (542)        341
equipment
Loss on disposal of other assets                     563          -
(Gain) loss on derivative financial                  (17)         72
instrument
Share-based compensation expenses                    459          -
Increase in deferred income taxes                    (1,449)      (490)
Unrealized exchange gain                             (206)        (47)
Changes in current assets and liabilities:
Decrease in accounts receivable                      65,905       14,909
Decrease (increase) in inventories                   25,636       (9,936)
Decrease (increase) in prepaid expenses and other    1,309        (3,520)
receivables
(Decrease) increase in notes payable                 (4,248)      3,859
Decrease in accounts payable                         (92,846)     (8,825)
(Decrease) increase in accrued expenses and other    (12,470)     2,537
payables
(Decrease) increase in income tax payable            (122)        239
 Total adjustments                                 (9,395)      5,586
Net cash (used in) provided by operating activities  $  (4,411) $  1,952



NAM TAI ELECTRONICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE PERIODS ENDED MARCH 31, 2013 AND 2012
(In Thousands of US Dollars)
                                                      Three months ended

                                                      March 31
                                                     2013         2012
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment and land   $  (3,038)  $  (22,057)
use rights
Decrease in deposits for purchase of property,       -            3,690
plant and equipment
Cash received from derivative financial instrument   116          -
Proceeds from disposal of property, plant and        5,436        260
equipment and other assets
Cash received from finance lease receivable          776          -
Decrease in fixed deposits maturing over three      1,689        29,670
months
Net cash provided by investing activities            $   4,979  $  11,563
CASH FLOWS FROM FINANCING ACTIVITIES
Cash dividends paid                                  $  (6,720) $  (3,136)
Proceeds from issue of shares                        2,598        -
Proceeds from Trust Receipt loans                    886          9,107
(Repayment of) proceeds from bank loans              (4,824)      1,434
Net cash (used in) provided by financing activities  $  (8,060) $  7,405
Net (decrease) increase in cash and cash             $  (7,492) $  20,920
equivalents
Cash and cash equivalents at beginning of period     157,838      118,510
Effect of exchange rate changes on cash and cash     206          47
equivalents
Cash and cash equivalents at end of period           $  150,552  $  139,477



NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIODS ENDED MARCH 31, 2013 AND 2012
(In Thousands of US Dollars)
1. Accumulated other comprehensive income represents foreign currency
translation adjustments. The comprehensive income (loss) was $4,984 and
($3,634) for the three months ended March 31, 2013 and 2012 respectively.
2. Business segment information:
The Company's business was separated into the Telecommunication Components
Assembly – ("TCA") and FPC segments in 2012. Since the first quarter of 2013,
the FPC segment has been discontinued and only one TCA segment still existed.
3. A summary of the net sales, net income (loss) and long-lived assets by
geographical areas is as follows:



                                                Three months ended

                                                March 31
                                                2013          2012
Net sales from operations within:
 - PRC, excluding Hong Kong:
 Unaffiliated customers              $ 177,476     $  87,814
 Intercompany sales                  -             146
 - Intercompany eliminations                  -             (146)
Total net sales                                 $ 177,476     $  87,814
net Income (LOSS) from operations within:
 - PRC, excluding Hong Kong                   $   4,425   $    947
 - Hong Kong                                  459           (551)
Total net income from continuing business       $  4,884     $   396
                                                Mar. 31,      Dec. 31, 2012
                                                2013
LONG-LIVED assets WITHIN:
- PRC, excluding Hong Kong                      $ 150,602    $ 158,278
- Hong Kong                                     4,221         4,293
 Total long-lived assets $ 154,823    $ 162,571



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: Mr. Kevin McGrath, Managing Partner of Cameron Associates,
Tel.:212.245.4577, E-mail: kevin@cameronassoc.com
 
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