Nam Tai plunges after providing Q2 results, bleak outlook


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

Comments (3)
  • NumZie
    , contributor
    Comments (21) | Send Message
     
    "...but the customer is still expected to move production to a lower-cost supplier in time."

     

    That's one crappy line to write in an earnings release.
    Why are they constantly trying to trashtalk their own business and scare all possible shareholders away?
    5 Aug 2013, 02:09 PM Reply Like
  • JMstocks75
    , contributor
    Comments (249) | Send Message
     
    they did that last qtr, something is up
    5 Aug 2013, 03:24 PM Reply Like
  • NumZie
    , contributor
    Comments (21) | Send Message
     
    Yep - but they just did it again. One could wonder if they are trying to talk the stock price down.... it has before gone through some very strange trading patterns, and there are also a case on its way against them for lack of information prior to the last earnings release.
    6 Aug 2013, 02:48 AM Reply Like
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