Nam Tai Electronics, Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2012. For the quarter, the company's net sales were $468,464,000 compared to $129,073,000 a year ago. Operating income was $38,227,000 compared to operating loss of $9,054,000 a year ago. Income before income tax was $42,162,000 compared to loss before income tax of $2,724,000 a year ago. Income from continuing business was $36,501,000 or $0.8 per diluted share compared to loss from continuing business of $3,125,000 or $0.07 per diluted share a year ago. Consolidated net income was $36,606,000 or $0.8 per diluted share compared to net loss of $5,611,000 or $0.13 per diluted share a year ago. Net cash provided by operating activities was $47,579,000 compared to net cash operating activities of $13,003,000 a year ago. Purchase of property, plant and equipment and land use rights was $5,407,000 compared to $38,111,000 a year ago. The improvement of the company's results in the fourth quarter of 2012 was mainly due to four factors. First, sales increased significantly by 263% compared to the same period last year, as a result of the company's Shenzhen manufacturing facility began mass production of high-resolution liquid crystal display modules for smartphones in September 2012 and the company's Wuxi manufacturing facility continued to ramp up its production of high-resolution LCMs for tablets. Second, the company had $4 million in other and interest income, including $0.3 million of incentive allowance from the PRC government, $0.6 million in interest income and $1 million in exchange gain. Third, the company has improved its gross and net profits by discontinuing certain sales orders that have had poor performance. Fourth, the company enjoyed benefit from certain exemption treatment and tax reduction for its Wuxi operation and a tax benefit of $0.6 million, as a result of tax losses carried forward from last year.

For the year, the company's net sales were $1,147,923,000 compared to $525,077,000 a year ago. Operating income was $73,307,000 compared to operating loss of $11,354,000 a year ago. Income before income tax was $84,914,000 compared to $558,000 a year ago. Income from continuing business was $67,615,000 or $1.49 per diluted share compared to loss from continuing business of $414,000 or $0.01 per diluted share a year ago. Consolidated net income was $66,921,000 or $1.48 per diluted share compared to $505,000 or $0.01 per diluted share a year ago. Net cash provided by operating activities was $109,771,000 compared to net cash operating activities of $5,320,000 a year ago. Purchase of property, plant and equipment and land use rights was $58,444,000 compared to $59,858,000 a year ago. return on equity as at December 31, 2012 was 19.5% compared to 0.2% a year ago.

The company proposed to pay quarterly cash dividend of $0.15 per share for the second, third and fourth quarter of 2013, payable before April 30, 2013, July 31, 2013 and October 31, 2013, respectively, with the record date of March 31, 2013, June 30, 2013 and September 30, 2013, respectively.

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.