How absolutely stupid can this company be? They raise millions in funds from a stock offer, then begin a stock buyback weeks later, and now this:
VANCOUVER, British Columbia, March 23 /PRNewswire/ -- Nam Tai Electronics, Inc. (''Nam Tai'' or the ''Company'') (Nasdaq: NTAIF - news, NTAWF - news) today announced it has increased its annual dividend to $0.28 per share for 1998 compared to $0.10 per share for 1997. The Company also announced it will begin paying dividends on a quarterly basis, commencing with the first quarter 1998 dividend of $0.07 per share to be paid on or before April 28, 1998 to all shareholders of record at the close of business on April 6, 1998.
This is the first time the Company has announced dividends on a quarterly basis. Previously, the Company paid annual dividends of $0.01, $0.015, $0.03 and $0.10 per share in 1994, 1995, 1996 and 1997, respectively.
Mr. M. K. Koo, Chairman, announced, ''The Company is pleased with our strong sales and profit growth, large cash position of $102 million, and $3.68 diluted earnings per share for the year ended December 31, 1997 from net income of $30.8 million. The $3.69 total includes $2.27 of operating income per share, representing a total of $19 million, and $1.41 of non-operating income per share after tax. The non-operating income of $12 million includes a net gain of $4,350,000 arising from the sale of property in Hong Kong and Canada and the write-off of equipment, a $5,488,000 gain from the sale of investments, $1,808,000 of net interest income, and approximately $456,000 of other income. Accordingly, we are happy to reward our shareholders by increasing the dividend and increasing the frequency of dividend payments. Before the end of each remaining quarter in 1998 we plan to announce a similar quarterly dividend of $0.07. Record and payment dates will be announced at the same time.''
It is the current policy of Nam Tai to determine the actual amount of future dividends based upon the Company's growth during the preceding year.
Nam Tai is an independent provider of high quality manufacturing services to original equipment manufacturers (''OEMs'') in the consumer electronics industry. All of the Company's manufacturing operations are based in the People's Republic of China (''China''). Nam Tai assists OEMs in the design and development of products and furnishes full turnkey manufacturing services to its OEM customers utilizing advanced processes such as chip on board (''COB''), surface mount technology (''SMT''), tape automated bonding (''TAB'') and outer lead bonding (''OLB'') technologies. The Company provides hardware and software design, plastic molding, component purchasing, assembly into finished products or electronic subassemblies, post-assembly testing and shipping. The Company manufactures a broad line of finished products for its OEM customers, including personal organizers, linguistic products, calculators, integrated circuit (''IC'') or smart card readers (referred to as ''IC card readers''). It also manufactures electronic components and subassemblies for printed circuit boards (''PCBs''). These products include large scale integrated circuits (''LSI'') bonded on PCBs that are used in the manufacture of products such as electronic toys, and subassemblies for liquid crystal display (''LCD'') modules that are in turn used in the manufacture of communications, camera and computer products. In addition, Nam Tai provides OEMs with silk screening services for plastic parts, polyvinyl chloride (''PVC'') products and metal parts.
Except for the historical information contained herein, matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. The factors that might cause such a difference include, but are not necessarily limited to, those discussed in the Company's reports filed with the Securities and Exchange Commission from time to time, such as the factors set forth in Item 1. ''Description of Business -- Risk Factors'' in the Company's Annual Report on Form 20-F for the year ended December 31, 1996.
SOURCE: Nam Tai Electronics, Inc.
My question: why did you guys bother to raise so much cash if this is the best you can do with it! |
