VANCOUVER -- Nam Tai's net sales rose 15.3% in the second quarter to $214 million, in line with company guidance. Operating income rose 39.4% to $20 million, and net income more than tripled to $18.5 million.

In the quarter SG&A and R&D expenses as a percentage of sales was reduced to 4.7% from 5.1% last year. The company generated $17 million of net cash from operating activities and had capital expenditures of $3.4 million.

Nam Tai said growth momentum will be sustained in the third quarter and will further accelerate in the fourth quarter of 2006. The firm reiterated its long-term target of 25% sales growth.

The company expects to begin trial production of flex circuits by the end of the third quarter and is also looking for other opportunities to support the growth of its key component subassemblies business.

A factory expansion is planned for Shenzhen, and Nam Tai plans to construct a factory complex in Wuxi, pending local government environmental approvals.

• Prev
• Next