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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934

NAM TAI ELECTRONICS, INC.

(Translation of registrant’s name into English)

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F þ Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes o No þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-                     .

 

 

		THIRD QUARTER NEWS RELEASE
Investor relations contact: Kee Wong		E-mail:
shareholder@namtai.com
Address: Units 5811-12, 58/F, The Center
Website: www.namtai.com
99 Queen’s Road Central, Central, Hong Kong
Tel: (852) 2341 0273 Fax: (852) 2263 1223

NAM TAI ELECTRONICS, INC.
Q3 2009 Sales down 31.2%, Gross profit margin at 11.4%

SHENZHEN, PRC – November 2, 2009 — Nam Tai Electronics, Inc. (“Nam Tai” or the “Company”) (NYSE Symbol: NTE) today announced its unaudited results for the third quarter ended September 30, 2009.

KEY HIGHLIGHTS
(In thousands of US Dollars, except per share data, percentages and as otherwise stated)

		Quarterly Results												Nine Months Results
		Q3 2009				Q3 2008				YoY(%)				9M 2009				9M 2008				YoY(%)
Net sales		$	110,416			$	160,534				(31.2	)		$	314,402			$	453,831				(30.7	)
Gross profit		$	12,614			$	15,738				(19.9	)			30,158			$	56,030				(46.2	)
% of sales			11.4	%			9.8	%			—				9.6	%			12.3	%			—
Operating income (loss)(a)		$	4,810			$	4,421				8.8			$	(304	)		$	20,841				(101.5	)
% of sales			4.4	%			2.8	%			—				(0.1	%)			4.6	%			—
per share (diluted)		$	0.11			$	0.10				10.0			$	(0.01	)		$	0.47				(102.1	)
Net income attributable to Nam Tai shareholders(a)(b)		$	4,504			$	4,912				(8.3	)		$	1,236			$	45,082				(97.3	)
% of sales			4.1	%			3.1	%			—				0.4	%			9.9	%			—
Basic earnings per share		$	0.10			$	0.11				(9.1	)		$	0.03			$	1.01				(97.0	)
Diluted earnings per share		$	0.10			$	0.11				(9.1	)		$	0.03			$	1.01				(97.0	)
Weighted average number of shares (’000)
Basic			44,804				44,804				—				44,804				44,804				—
Diluted			44,813				44,806				—				44,808				44,806				—

In addition to disclosing results determined in accordance with accounting principles generally accepted in the United States (“US GAAP”) as set forth in the table above, management utilizes a measure of operating income / (loss), net income / (loss) and earnings (loss) per share on a non-GAAP basis that excludes certain income and expenses to better assess operating performance. Those non-GAAP financial measures exclude certain items, such as share-based compensation expenses and infrequent or unusual items such as gain on sale of shares of a subsidiary, employee severance benefits in PRC subsidiaries and other income recovered from Tele-Art Inc. (in liquidation). By disclosing the non-GAAP information, management intends to provide investors with additional information to analyze the

Company’s performance, core results and underlying trends. Non-GAAP information is not determined using US GAAP; therefore, the information is not necessarily comparable to other companies and should not be used to compare the Company’s performance over different periods. Non-GAAP information should not be viewed as a substitute for, or superior to, net income or other financial data prepared in accordance with US GAAP as measures of our operating results or liquidity. Users of this financial information should consider the types of events and transactions for which adjustments have been made. See the table below for a reconciliation of non-GAAP amounts to amounts reported under US GAAP.

GAAP TO NON-GAAP RECONCILIATION
(In millions of US Dollars, except for per share (diluted) and numbers of shares)

		Three months ended																Nine months ended
		September 30,																September 30,
		2009								2008								2009								2008
						per share								per share								per share								per share
		millions				(diluted)				millions				(diluted)				millions				(diluted)				millions				(diluted)
GAAP Operating Income (Loss)		$	4.8			$	0.11			$	4.4			$	0.10			$	(0.3	)		$	(0.01	)		$	20.8			$	0.47
Add back:
- Share-based compensation expenses(a)			—				—				—				—				0.1				—				1.2				0.03
- Professional expenses in relation to privatization of NTEEP			—				—				—				—				0.9				0.02				—				—
- Employee severance benefits in PRC subsidiaries (b)			—				—				—				—				5.1				0.11				—				—
Non-GAAP Operating Income		$	4.8			$	0.11			$	4.4			$	0.10			$	5.8			$	0.12			$	22.0			$	0.50
GAAP Net Income (Loss) attributable to Nam Tai shareholders		$	4.5			$	0.10			$	4.9			$	0.11			$	1.2			$	0.03			$	45.1			$	1.01
Add back/(Less):
- Share-based compensation expenses(a)			—				—				—				—				0.1				—				1.2				0.03
- Professional expenses in relation to privatization of NTEEP			—				—				—				—				0.9				0.02				—				—
- Employee severance benefits in PRC subsidiaries (after deducting tax and sharing with noncontrolling interest) (b)			—				—				—				—				3.2				0.07				—				—
- Gain on sale of subsidiaries’ shares (c)			—				—				—				—				—				—				(20.2	)			(0.45	)
- Other income recovered from Tele-Art Inc. (in liquidation)(d)			—				—				—				—				—				—				(2.9	)			(0.07	)
Non-GAAP Net Income attributable to Nam Tai shareholders		$	4.5			$	0.10			$	4.9			$	0.11			$	5.4			$	0.12			$	23.2			$	0.52
Weighted average number of shares – diluted (‘000)			44,813								44,806								44,808								44,806

SUPPLEMENTARY INFORMATION (UNAUDITED) IN THE THIRD QUARTER OF 2009

1. Quarterly Sales Breakdown

     (In thousands of US Dollars, except percentage information)

														YoY(%)
										YoY(%)				(Quarterly
Quarter		2009				2008				(Quarterly)				accumulated)
1st Quarter			102,150				147,129				(30.6	)			(30.6	)
2nd Quarter			101,836				146,168				(30.3	)			(30.5	)
3rd Quarter			110,416				160,534				(31.2	)			(30.7	)
4th Quarter			—				169,021
Total			314,402				622,852

2. Breakdown of Net Sales by Product Segment (as a percentage of Total Net Sales)

		2009								2008
Segments		Q3 (%)				YTD (%)				Q3 (%)				YTD (%)
Consumer Electronic and Communication Products (“CECP”)			26	%			29	%			41	%			46	%
Telecommunication Component Assembly (“TCA”)			56	%			55	%			45	%			41	%
Liquid Crystal Display Products (“LCDP”)			18	%			16	%			14	%			13	%
			100	%			100	%			100	%			100	%

3. Key Highlights of Financial Position

		As at September 30,								As at December 31,
		2009				2008				2008
Cash on hand (a)		$189.6 million				$250.5 million				$237.0 million
Ratio of cash (a) to current liabilities			2.26				1.61				1.66
Current ratio			3.35				2.69				2.67
Ratio of total assets to total liabilities			4.86				3.52				3.58
Return on Nam Tai shareholders’ equity			0.5	%			17.8	%			9.4	%
Ratio of total liabilities to total equity			0.26				0.45				0.39
Debtors turnover		63 days				75 days				61 days
Inventory turnover		14 days				23 days				18 days
Average payable period		62 days				81 days				65 days

THIRD QUARTER REVIEW

The business environment in Nam Tai’s product sectors remains difficult and extremely competitive. Sales in the third quarter of 2009 were $110.4 million, a decrease of 31.2% as compared to sales of $160.5 million in the same quarter of 2008. Sales in our CECP segment, TCA segment and LCDP segment dropped by 57.3%, 14.8% and 7.6%, respectively, during the third quarter of 2009, as compared to same period in 2008. Sales in our CECP segment declined significantly mainly because of the continuing effect from the global economic downturn. The weak demand in the market for our consumer products adversely affected sales of all of our end-user products such as mobile phone accessories, which principally represented sales of our headsets containing Bluetooth®¹ wireless technology, educational products, optical products and home entertainment devices. Sales in our TCA segment and LCDP segment also declined as a consequence of the decline in sales of TCA and LCD panels.

The Company’s gross profit margin in the third quarter of 2009 was 11.4% as compared to 9.8% in the third quarter of 2008. Gross profit in the third quarter of 2009 was $12.6 million, a decrease of 19.9%, as compared to $15.7 million in the third quarter of 2008, primarily resulting from the decrease in sales.

Net income attributable to Nam Tai shareholders in the third quarter of 2009 was $4.5 million, as compared to net income of $4.9 million in same quarter of 2008. Basic and diluted earnings per share in the third quarter of 2009 were $0.10 per share, as compared to basic and diluted earnings per share of $0.11 in the third quarter of 2008.

For the nine months ended September 30, 2009, our net sales were $314.4 million, a decrease of 30.7% as compared to $453.8 million in the same period last year. The Company’s gross profit margin in the first nine months of 2009 was 9.6% as compared to 12.3% in the same period of 2008. Gross profit was $30.2 million, a decrease of 46.2%, as compared to $56.0 million in the same period last year. We reported an operating loss for the first nine months of 2009 of $0.3 million, compared to operating income of $20.8 million in the same period last year. Our net income attributable to Nam Tai shareholders for the nine months ended September 30, 2009 was $1.2 million, or $0.03 per share (diluted), as compared to net income attributable to Nam Tai shareholders of $45.1 million, or $1.01 per share (diluted), in the same period last year.

Non-GAAP Financial Information

Non-GAAP operating income for the third quarter of 2009 was $4.8 million, or $0.11 per share (diluted), compared to non-GAAP operating income of $4.4 million, or $0.10 per share (diluted), in the third quarter of 2008. Non-GAAP net income attributable to Nam Tai shareholders for the third quarter of 2009 decreased to $4.5 million, or $0.10 per share (diluted), compared to income of $4.9 million, or $0.11 per share (diluted), in the third quarter of 2008.

Liquidity and Financial Resources

Despite current economic conditions, Nam Tai’s financial position as at September 30, 2009 remained strong with $4.8 million net cash generated from operating activities during the third quarter and $189.6 million cash on hand, of which about $99.2 million was held by NTEEP and its subsidiaries, even after the payment of $7.1 million on capital expenditures. Had we completed the privatization of our subsidiary, NTEEP, as at September 30, 2009, our pro forma cash on hand on that date would have decreased to an estimated $187.8 million, which gives effect to our use of cash to pay the estimated aggregate cost to acquire the NTEEP shares that we did not already own. See the discussion of this privatization transaction below.

Nam Tai’s cash on hand has been invested in term deposits with HSBC and China Construction Bank. The Company continues to exercise rigorous corporate governance and control policies and is not involved in trading of any debt securities or financial derivative products.

EXPANSION PROJECTS

During the third quarter of 2009, we expended approximately $4 million mainly on our ongoing expansion project of FPC manufacturing plant in Wuxi near the east coast of China, approximately 80 miles northwest of Shanghai. After almost a year of construction, the facility was largely completed in the second quarter 2009. In the third quarter, manufacturing equipments were being set up and human resources were being recruited to operate the plant. Currently the team in Wuxi is preparing for customer audits and product qualifications. The mass production of FPC in the fourth quarter is expected to be on time.

As announced in the previous quarters, the second Wuxi and the Guangming projects are currently on hold indefinitely.

PRIVATIZATION OF NTEEP

On October 9, 2009, the Company sent a notice of compulsory acquisition (the “Notice”) to all remaining independent shareholders of NTEEP to acquire their outstanding shares. Unless an application is made to the court of the Cayman Islands by the independent shareholders within 1 month of the Notice and the court thinks fit to order otherwise, the Company will be bound to acquire all the outstanding shares which is expected to be on November 12, 2009 upon the same terms as the offer.

The Stock Exchange of Hong Kong Limited has already approved the application of NTEEP to withdraw the listing of its shares on the Stock Exchange of Hong Kong with effect from 9:30 a.m. on November 13, 2009 subject to the completion of the compulsory acquisition which is expected to be on November 12, 2009. NTEEP will then become a wholly owned subsidiary of the Company.

COMPANY OUTLOOK

It has been a year since the start of the worldwide economy crisis in September 2008. In order to cope with this drastic drop in demand from the global market, Nam Tai had taken some strong measures of cost reduction such as retrenchment and salary reduction. Consequently, we saw noticeable improvements in the second quarter and third quarter 2009. Although sales improved in the third quarter, Nam Tai continues to view the business recovery conservatively.

The surge in sales in the third quarter is seasonal as the market is preparing for the Christmas season. In fear of overstocking, the market will be cautious and is expected to return to a weaker demand position in the fourth quarter of 2009. With a leaner organization structure after privatization and a more efficient operation, Nam Tai is set in a stronger preventive position to battle this unpredictable and fluctuating market in the coming quarters. It is expected that Nam Tai will make up for the initial losses in the first quarter and complete 2009 with a breakeven result.

Nam Tai expects the recovery rate at the turn of 2010 to be slow and not until in the third quarter of 2010 that the recovery will occur. Meanwhile, Nam Tai reinforces even stronger relations and ties with existing major customers. It is through these sound partnerships that will provide the support and business growth when the market recovers from the economy crisis. Nam Tai has also been able to identify synergies among the business units of LCP, TCP and CECP, and has embarked to develop greater depth of vertical integration to provide wider customer base and product markets. In order to support this, Nam Tai strengthens sales forces and expands manufacturing facilities in Wuxi. This building up of greater value in the capability becomes Nam Tai’s proactive measures in the preparation for the awaited recovery in 2010.

FORWARD-LOOKING STATEMENTS AND FACTORS THAT COULD CAUSE OUR SHARE PRICE TO DECLINE

Express or implied statements in this press release, such as management’s assessment of the strength of Nam Tai’s financial condition and cash position, our belief regarding the benefits and cost reductions to be realized upon completion of the privatization of NTEEP, the potential enhancement of Nam Tai’s operating margins from management’s continuing efforts to broaden Nam Tai’s product offerings and services and to control expenses; management’s expectations that Nam Tai’s future results will benefit from efforts to strengthen Nam Tai’s sales and technical teams through the support and co-ordination from the Company’s Japan office, the expected future timing of increased demand for Nam Tai’s products and services and management’s expectations that Nam Tai will emerge from the current recession to become leaner, stronger and a more focused company, positioned for growth, among other statements in this press release, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by the use of words like “believes,” “intends,” “expects,” “seeks”, “plans” or “planned,” “may,” “will,” “should” or “anticipates,” or the negative equivalents of those words or comparable terminology, and involve risks and uncertainties. Such statements are based on current expectations and assumptions and reflect management’s views with respect to future events and may not actually occur during the periods indicated or at all and are not a guarantee of Nam Tai’s future performance. These forward-looking statements are, by their nature, subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by the forward-looking statements in this press release. These risks and uncertainties include whether the effects of management’s efforts or actions to decrease costs by reducing Nam Tai’s workforce or implementing reductions of salaries of Nam Tai’s employees will continue to achieve material improvements or maintain or increase gross or operating margins or will offset potential declines in revenues resulting from ongoing economic conditions; whether

management’s actions to strengthen Nam Tai’s sales and technical presence in Japan will have a material effect on sales or justify the funds expended in the process; whether management’s recent and ongoing cost reduction measures will enable Nam Tai to emerge from the current economic conditions as a leaner, stronger, more focused company or positioned for growth or overcome or even cope with adverse global economic conditions generally or the fallout from such conditions on Nam Tai’s business specifically, including the effect of increasing taxes and labor costs from relatively recent tax and labor legislation in the PRC; whether Nam Tai’s revised expansion plans will be effective or sufficient to conserve capital or focus resources; and whether Nam Tai’s completion of the privatization of NTEEP will provide Nam Tai’s with meaningful benefits. Product orders and Nam Tai’s operating results, available cash, cash flows, operating results and levels of capital expenditures may be adversely affected by numerous factors including adverse global economic conditions generally and the continuing uncertainties and fears regarding the world’s and nations’ economies; Nam Tai’s dependence on a few large customers; intense competition in the electronics manufacturing services, or EMS, industry in which the Company participates, particularly in markets that place constant pressure on the Company to reduce unit prices; continuing competitive pressures that adversely affect its profit margins; its operating results fluctuating and lacking predictability; risks relating to its doing business in the PRC such as arising from changes in governmental policies, trade regulation, currency exchange rates, particularly from the appreciation of the renminbi to the U.S. dollar which has occurred since June 2005, and inflation in the PRC and elsewhere globally; the timing and amount of significant orders from customers; Nam Tai’s success at attracting new customers; delays in product development and related product release schedules; obsolete inventory or product returns; warranty and other claims on products; technological shifts; the availability of competitive products of comparable quality at prices below Nam Tai’s prices; maturing product life cycles of the products manufactured by Nam Tai; concessions Nam Tai may make on product sale terms and conditions; successful implementation of operating cost structures that align with revenue; the financial condition of Nam Tai’s customers and vendors; the availability and increasing costs of materials and other components needed to manufacture Nam Tai’s products; potential shortages of materials or skilled labor needed to complete its planned expansion project in Wuxi; unforeseen engineering problems, work stoppages, weather interference, flood, earthquake or other acts of God, delays in obtaining or failure to obtain necessary permits from regulatory authorities needed for completion of its planned new Wuxi facility or to continue existing operations; unanticipated cost increases; risks of expanding into a new area of the PRC where Nam Tai’s has not yet conducted business, the success or failure of Nam Tai’s efforts to return property acquired from the Wuxi government for the construction of the second factory and potential consequences to Nam Tai from terminating its second Wuxi expansion project; diversion of management’s attention to a new factory in Wuxi and to other business concerns; the impact of legislative actions, higher insurance costs and potential new accounting pronouncements; a worsening of relations between the PRC and the United States; the effects of terrorist activity and armed conflict that cause disruptions in general economic activity and changes in Nam Tai’s operations and security arrangements; the effects of travel restrictions and quarantines associated with major health problems, such as Severe Acute Respiratory Syndrome, Bird Flu or recent outbreaks of swine flu, on general economic activity; or other changes in general economic conditions, including an exacerbation of the current global economic weaknesses that continue to adversely affect, or further reduce, demand for Nam Tai’s products. In addition, factors, among others, that could cause the market price of our shares to decline in the future could include further decreases in our revenues from those we reported in earlier periods, our operating results or those of our competitors or customers to meet the expectations of public market analysts and investors who follow the EMS, industry, or one or more of the factors discussed in “Item 3. Key Information — Risk Factors” in our Annual Report on Form 20-F for the year ended December 31, 2008 as filed on March 13, 2009 with the Securities and Exchange Commission.

For further information regarding risks and uncertainties associated with Nam Tai’s business, operating results or financial condition, please refer to the “Operating and Financial Review and Prospects,” “Management’s Discussion and Analysis of Results of Operations and Financial Condition” and “Risk Factors” sections of Nam Tai’s SEC filings, including, but not limited to, its annual reports on Form 20-F and Reports on Form 6-K containing releases of Nam Tai’s quarterly financial results, copies of which may be obtained from Nam Tai’s website at http://www.namtai.com or from the SEC’s EDGAR website at http://www.sec.gov.

All information in this press release is as of November 2, 2009 in Shenzhen of the People’s Republic of China. Nam Tai does not undertake any duty, and should not be expected, to update any forward-looking statement to conform the statement to actual results or changes in Nam Tai’s expectations.

ABOUT NAM TAI ELECTRONICS, INC.

We are an electronics manufacturing and design services provider to a select group of the world’s leading OEMs of telecommunications and consumer electronic products. Through our electronics manufacturing services operations, we manufacture electronic components and subassemblies, including LCD panels, LCD modules, RF modules, DAB modules, FPC subassemblies and image-sensor modules and PCBAs for headsets containing Bluetooth® wireless technology. These components are used in numerous electronic products, including mobile phones, laptop computers, digital cameras, electronic toys, handheld video game devices, and entertainment devices. We also manufacture finished products, including mobile phone accessories, home entertainment products and educational products. We assist our OEM customers in the design and development of their products and furnish full turnkey manufacturing services that utilize advanced manufacturing processes and production technologies.

NAM TAI ELECTRONICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(2)
FOR THE PERIODS ENDED SEPTEMBER 30, 2009 AND 2008
(In Thousands of US Dollars except share and per share data)

		Unaudited								Unaudited
		Three months ended								Nine months ended
		September 30								September 30
		2009				2008				2009				2008
Net sales		$	110,416			$	160,534			$	314,402			$	453,831
Cost of sales			97,802				144,796				284,244				397,801
Gross profit			12,614				15,738				30,158				56,030
Costs and expenses
Selling, general and administrative expenses			6,470				8,484				20,579				27,315
Research and development expenses			1,334				2,833				4,825				7,874
Employee severance benefits			—				—				5,058				—
			7,804				11,317				30,462				35,189
Operating Income (loss)			4,810				4,421				(304	)			20,841
Other (expenses) income, net			31				244				(75	)			6,731
Gain on sales of shares of a subsidiary			—				—				—				20,206
Interest income			59				1,583				665				4,873
Interest expense			18				(103	)			(202	)			(246	)
Income before income tax			4,918				6,145				84				52,405
Income tax expenses			(391	)			(351	)			(1,029	)			(1,852	)
Net income (loss)			4,527				5,794				(945	)			50,553
Less: Net loss (income) attributable to the noncontrolling interest			(23	)			(882	)			2,181				(5,471	)
Net income attributable to Nam Tai shareholders		$	4,504			$	4,912			$	1,236			$	45,082
Earnings per share (attributable to Nam Tai shareholders)
Basic		$	0.10			$	0.11			$	0.03			$	1.01
Diluted		$	0.10			$	0.11			$	0.03			$	1.01
Weighted average number of shares (’000)
Basic			44,804				44,804				44,804				44,804
Diluted			44,813				44,806				44,808				44,806

NAM TAI ELECTRONICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
AS AT SEPTEMBER 30, 2009 AND DECEMBER 31, 2008
(In Thousands of US Dollars)

		Unaudited				Audited
		September 30				December 31
		2009				2008
						(Note)
ASSETS
Current assets:
Cash and cash equivalents		$	189,557			$	237,017
Accounts receivable, net			72,365				104,150
Entrusted loan receivable (Note 1)			—				8,199
Inventories			15,008				27,300
Prepaid expenses and other receivables			2,484				4,148
Deferred tax assets – current			1,504				1,232
Total current assets			280,918				382,046
Property, plant and equipment, net			109,641				108,067
Land use right			13,370				13,593
Deposits for property, plant and equipment			910				2,937
Goodwill			2,951				2,951
Deferred tax assets-non current			3,934				3,547
Other assets			920				920
Total assets		$	412,644			$	514,061
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Entrusted loan payable (Note 1)		$	—			$	8,199
Notes payable			608				—
Accounts payable			63,983				98,125
Accrued expenses and other payables			18,576				25,967
Dividend payable			—				9,857
Income tax payable			753				861
Total current liabilities			83,920				143,009
Deferred tax liabilities			988				740
Total liabilities			84,908				143,749
EQUITY
Nam Tai shareholders’ equity:
Common shares			448				448
Additional paid-in capital			285,150				282,767
Retained earnings			40,290				39,054
Accumulated other comprehensive loss (Note 2)			(8	)			(8	)
Total Nam Tai shareholders’ equity			325,880				322,261
Noncontrolling interest (NTEEP)			1,856				48,051
Total equity			327,736				370,312
Total liabilities and shareholders’ equity		$	412,644			$	514,061

Note:		Information extracted from the audited financial statements included in the 2008 Form 20-F of the Company filed with the Securities and Exchange Commission on March 13, 2009.

NAM TAI ELECTRONICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE PERIODS ENDED SEPTEMBER 30, 2009 AND 2008
(In Thousands of US Dollars)

		Unaudited								Unaudited
		Three months ended								Nine months ended
		September 30								September 30
		2009				2008				2009				2008
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)		$	4,504			$	4,912			$	1,236			$	45,082
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property, plant and equipment and land use right			5,964				5,433				16,447				16,744
Net (gain) loss on disposal of property, plant and equipment			(146	)			3				(409	)			5
Dividend withheld			—				—				—				(305	)
Gain on sales of subsidiaries’ shares			—				—				—				(20,206	)
Share-based compensation expenses			—				48				67				1,206
Noncontrolling interest			23				882				(2,181	)			5,471
Deferred income taxes			(351	)			(574	)			(411	)			(943	)
Unrealized exchange (gain) loss			(41	)			(257	)			(2	)			(3,940	)
Changes in current assets and liabilities:
(Increase) decrease in accounts receivable			(6,741	)			(43,473	)			31,785				(28,917	)
Decrease (increase) in inventories			1,216				(10,482	)			12,292				(383	)
(Increase) decrease in prepaid expenses and other receivables			(106	)			(103	)			1,664				1,902
Decrease in income taxes recoverable			—				3,544				—				5,439
Increase (decrease) in notes payable			608				(2,571	)			608				(4,580	)
Increase (decrease) in accounts payable			736				39,880				(34,142	)			10,254
(Decrease) increase in accrued expenses and other payables			(1,119	)			30				(3,983	)			(2,219	)
Increase (decrease) in income tax payable			212				(229	)			(108	)			526
Total adjustments			255				(7,869	)			21,627				(19,946	)
Net cash provided by (used in) operating activities		$	4,759			$	(2,957	)		$	22,863			$	25,136
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash (outflow) inflow from disposal of subsidiaries			—				—				—				6,671
Purchase of property, plant and equipment			(7,124	)			(5,801	)			(21,657	)			(13,469	)
Decrease (increase) in deposits for purchase of property, plant and equipment			1,892				725				2,027				(224	)
Increase in prepayment for purchase of land			—				—				—				(663	)
Decrease (increase) in entrusted loan receivable			8,199				(19	)			8,199				(8,185	)
Acquisition of additional shares in subsidiaries			(41,698	)			(876	)			(41,698	)			(2,906	)
Proceeds from disposal of property, plant and equipment			155				1				860				31
Net cash (used in) investing activities		$	(38,576	)		$	(5,970	)		$	(52,269	)		$	(18,745	)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash dividends paid		$	—			$	(12,695	)		$	(9,857	)		$	(37,819	)
(Repayment of) proceeds from entrusted loan			(8,199	)			19				(8,199	)			8,185
Repayment of bank loans			(628	)			—				—				(2,648	)
Net cash (used in) financing activities		$	(8,827	)		$	(12,676	)		$	(18,056	)		$	(32,282	)
Net (decrease) in cash and cash equivalents			(42,644	)			(21,603	)			(47,462	)			(25,891	)
Cash and cash equivalents at beginning of period			232,160				271,854				237,017				272,459
Effect of exchange rate changes on cash and cash Equivalents			41				257				2				3,940
Cash and cash equivalents at end of period		$	189,557			$	250,508			$	189,557			$	250,508

NAM TAI ELECTRONICS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
FOR THE PERIODS ENDED SEPTEMBER 30, 2009 AND 2008
(In Thousands of US Dollars)

1.

The entrusted loan represents the loan arrangement between two subsidiaries, Namtai Electronic (Shenzhen) Co. Ltd. (the “entrusting party”) and Jetup Electronic (Shenzhen) Co. Ltd. (the “borrower”), via HSBC Bank (China) Company Limited, Shenzhen Branch (the “lender”).

2.

Accumulated other comprehensive income represents foreign currency translation adjustments. The comprehensive income attributable to Nam Tai shareholders of the Company was $1,236 and $45,082 for the nine months ended September 30, 2009 and September 30, 2008, respectively.

3.

Business segment information — The Company operates primarily in three segments, the Consumer Electronic and Communication Products (“CECP”) segment, Telecommunication Component Assembly (“TCA”) segment, and the LCD Products (“LCDP”) segment.

		Unaudited								Unaudited
		Three months ended								Nine months ended
		September 30								September 30
		2009				2008				2009				2008
NET SALES :
- CECP		$	28,161			$	65,884			$	90,734			$	209,062
- TCA			61,842				72,557				172,809				183,715
- LCDP			20,413				22,093				50,859				61,054
Total net sales		$	110,416			$	160,534			$	314,402			$	453,831
NET INCOME :
- CECP		$	2,603			$	6,530			$	4,600			$	21,472
- TCA			693				(545	)			(956	)			3,656
- LCDP			1,863				(317	)			455				(415	)
- Corporate			(655	)			(756	)			(2,863	)			20,369
Total net income (loss) attributable to Nam Tai shareholders		$	4,504			$	4,912			$	1,236			$	45,082

		Unaudited				Audited
		Sep. 30,				Dec. 31,
		2009				2008
IDENTIFIABLE ASSETS BY SEGMENT:
- CECP		$	133,299			$	189,889
- TCA			144,233				164,516
- LCDP			41,252				42,977
- Corporate			93,860				116,679
Total assets		$	412,644			$	514,061

NAM TAI ELECTRONICS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
FOR THE PERIODS ENDED SEPTEMBER 30, 2009 AND 2008
(In Thousands of US Dollars)

4.

A summary of the net sales, net income and long-lived assets by geographic areas is as follows:

		Unaudited								Unaudited
		Three months ended								Nine months ended
		September 30								September 30
		2009				2008				2009				2008
NET SALES FROM OPERATIONS WITHIN:
- PRC, excluding Hong Kong and Macao:
Unaffiliated customers		$	110,416			$	160,534			$	314,402			$	453,831
Intercompany sales			4				18				19				136
- Intercompany eliminations			(4	)			(18	)			(19	)			(136	)
Total net sales		$	110,416			$	160,534			$	314,402			$	453,831
NET INCOME FROM OPERATIONS WITHIN:
- PRC, excluding Hong Kong and Macao		$	4,644			$	1,288			$	3,435			$	12,541
- Hong Kong & Macao			(140	)			3,624				(2,199	)			32,541
Total net income (loss) attributable to Nam Tai shareholders		$	4,504			$	4,912			$	1,236			$	45,082

		Unaudited				Audited
		Sep. 30,				Dec. 31,
		2009				2008
LONG-LIVED ASSETS WITHIN:
- PRC, excluding Hong Kong and Macao		$	122,881			$	121,475
- Hong Kong and Macao			130				185
Total long-lived assets		$	123,011			$	121,660

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.