Nam Tai plunges after providing Q2 results, bleak outlook

|About: Nam Tai Property Inc. (NTP)|By:, SA News Editor

Excluding $30.7M in revenue from Nam Tai's (NTE -14.5%) discontinued tablet LCD manufacturing ops, Q2 revenue rose 64% Y/Y to $167.9M.

Gross margin was 9.6%, up from 4.1% in Q1 but down from 15% a year ago.

Nam Tai halted manufacturing at its Wuxi, China tablet LCD facility (previous) at the end of May "due to a lack of new customer orders and after it was unsuccessful in finding a joint venture partner." The company is looking to sell the facility.

Nam Tai's Shenzhen facility has received a smartphone LCD order in Q3 from "an existing customer" (Apple?), but the customer is still expected to move production to a lower-cost supplier in time.

Customer orders are expected to remain "volatile," with continued price pressure, and the amount of EMS services provided by Nam Tai is expected to be "further reduced significantly."

All "commercially viable alternatives" are being explored to continue LCD manufacturing. Also, Nam Tai is looking to convert another Shenzhen facility into "a high-end commercial complex."

Q2 results, PR