Nam Tai Electronics (NTE) Reports Q4 EPS of $0.82, Comments on Outlook
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Nam Tai Electronics, Inc. (NYSE: NTE) reported Q4 EPS of $0.82, versus ($0.13) reported last year. Revenue for the quarter came in at $468.46 million, versus $129.07 million reported last year.
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.
For earnings history and earnings-related data on Nam Tai Electronics, Inc. (NTE) click here.
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.
For earnings history and earnings-related data on Nam Tai Electronics, Inc. (NTE) click here.
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