VANCOUVER, CANADA -- March 22, 2001 -- Nam Tai Electronics, Inc. (“Nam Tai” or the “Company”) (NASDAQ/NM Symbol: NTAI and NTAIW; CBOE Symbol: QNA) today revised its earlier guidance for revenue and earnings per share for 2001 to $270 - $290 million from $340 - $360 million, citing general weakness in both Japan and North America. Guidance for earnings per share in 2001 is reduced to approximately $1.40 - $1.60 from $2.25 - $2.50.
For the first quarter 2001 results the Company forecasts that sales will be approximately $50 million. The first quarter is traditionally the slowest quarter resulting from both the closing of the Company’s factories in China for two weeks for the Chinese New Year holidays and the general reduction in sales following the holiday season.
High customer inventory levels have resulted in the delay and cancellation of orders for calculators, personal organizers, linguistic products and rechargeable battery packs. As a result of order cancellations the Company will write off inventory, reducing its net income.
Sales expectations remain relatively unchanged for the Company’s largest and fastest growing product line of LCD modules. The Company expects that the LCD module product line will be the major contributor to the Company’s growth in the future. Nam Tai also reported that sales of LCD panels and transformers, (by recently acquired JIC) are expected to be somewhat higher than earlier forecast.
Nam Tai Electronics, Inc. is an electronics design and manufacturing service provider to some of the world’s leading original equipment manufacturers. Nam Tai manufactures telecommunication products, palm-sized PCs, personal digital assistants, linguistic products, calculators, smart card readers and various components including LCD modules for cellular phones, lithium ion rechargeable battery packs, transformers and LCD panels. The Company utilises advanced production technologies such as chip on board (“COB”), chip on glass (“COG”), surface mount technology (“SMT”), ball grid array (“BGA”), tape automated bonding (“TAB”), and outer lead bonding (“OLB”) technologies. Further information is available on Nam Tai’s web-site at www.namtai.com.
Except for the historical information, matters discussed in this press release are forward-looking statements. For example, the Company’s guidance for 2001 sales and earnings per share are forward-looking statements the results of which are uncertain and dependant upon many factors including the level of overall growth in the electronics manufacturing services (“EMS”) industry, end-user demand, competitive pressures, and changes in general economic conditions. Other factors that might cause differences include those discussed in the Company’s reports filed with the Securities and Exchange Commission from time to time, such as the Company’s Annual Report on Form 20-F for the year ended December 31, 2000.