VANCOUVER, CANADA -- February 18, 2003 -- Nam Tai Electronics, Inc. (“Nam Tai” or the “Company”) (NYSE Symbol: NTE; CBOE Symbol QNA) today announced that in the review of its quarterly financial results for the year ended December 31, 2002 that it determined a non-cash charge of $1.5 million related to the creation of a minority interest in its JIC subsidiary should have been reflected in its quarterly results for the three months ended June 30, 2002, the period when the JIC minority interest was created. This charge was reflected in the Company’s press release announcing its fourth quarter results as a fourth quarter charge. The change in timing of this charge does not affect the Company’s annual results as presented in its prior press release.
The result of changing the period in which this charge was recognized is to reduce net income for the three months ended June 30, 2002 by $1.5 million to $3.8 million. Intangible assets – net at June 30, 2002 should have also been reduced by $1.5 million to $20.6 million. For the quarter ended December 31, 2002, net income should have been $1.5 million higher than previously shown, or $6.0 million. This change does not affect the Company’s balance sheet at December 31, 2002. As this is a non-cash charge, there is no impact to the Company’s cash flow from operations or investing activities in any period of 2002.
Fourth Quarter Results Analyst Conference Call
The Company will hold a conference call on Tuesday, February 18, 2003 at 10:00 a.m. Eastern Time for analysts to discuss the fourth quarter results with management. Shareholders, media, and interested investors are invited to listen to the live conference call over the Internet by going to http://www.namtai.com/news/news.htm and clicking on the conference call link or over the phone by dialing 612-288-0318 just prior to its start time. Users will be asked to register with the conference call operator.
About Nam Tai
We are an electronics design and manufacturing services provider to a select group of the world’s leading original equipment manufacturers of telecommunications and consumer electronic products. Through our electronics manufacturing services, or EMS, operations, we manufacture electronic components and subassemblies, including LCD panels, transformers, LCD modules and radio frequency, or RF, modules. These components are used in numerous electronic products, including cellular phones, laptop computers, digital cameras, copiers, fax machines, electronic toys and microwave ovens. We also manufacture finished products, including cordless phones, palm-sized PC’s, personal digital assistants, electronic dictionaries, calculators and digital camera accessories for use with cellular phones. Further information is available at www.namtai.com.