Nam Tai Electronics, Inc. (NTE), Monday reported a swing to profit for the fourth quarter from a loss last year, reflecting better margins and the absence of an impairment loss recorded last year, which more than offset a 59% decline in revenues. The company's quarterly profit, however, was down from last year on a adjusted basis. NTE stock is currently trading down nearly 10% on the NYSE.
The Macao, Macau-based company's net income attributable to shareholders was $0.42 million or $0.01 per share, compared to a loss of $14.45 million or $0.32 per share in the previous year.
Results for the prior-year quarter included employee severance benefits of $0.60 million and impairment loss on goodwill of $17.30 million.
On an adjusted basis, net income for the quarter was $0.42 million or $0.01 per share, compared to $3.5 million or $0.08 per share in the prior-year quarter.
Net sales for the quarter declined 44.5% to $93.73 million from $169.02 million last year.
Sales in the Consumer Electronic and Communication Products segment declined 59.3% to $25.32 million and Telecommunication Component Assembly segment dropped 45.0% to $50.15 million from last year. Liquid Crystal Display Products segment sales increased 17.9% to $18.25 million during the fourth quarter of 2009, as compared to same period in 2008.
Gross profit was $10.16 million or 10.8% of sales, compared to $14.65 million or 8.7% of sales in the comparable quarter last year.
Research and development expenses decreased to $1.45 million from $3.02 million a year ago.
For the fiscal 2009, net income declined to $1.65 million or $0.04 per share from $30.63 million or $0.68 per share in the previous year. Net sales for the year declined 34.5% to $408.14 million from $622.85 million a year ago.
Looking ahead, the company expects the global financial crisis which continues from 2009 to impact its businesses in 2010. Business of the Consumer Electronic and Communication Products segment is expected to drop in 2010, while the demand for LCM and FPC products are expected to increase.
NTE is currently trading at $4.3125, down 0.4775 or 9.97%, on a volume of 0.24 million shares on the NYSE.
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