SHENZHEN, China (AP) — Shares of Chinese electronics maker Nam Tai Electronics Inc. fell 10 percent Monday after the company said it lost $3.6 million in the first quarter because of delays in manufacturing new products.
Nam Tai called the first quarter a "transitional" period as it shuts down production of low-end monochrome LCD panels and starts to ramp up production of high-resolution screens for tablets and smartphones. It expects faster growth and larger orders for the new products.
But production of major orders of the new high-resolution screens has been delayed because of problems securing parts, and the company warned that production could be delayed further because some key components from suppliers didn't meet quality standards. Uncertainty about whether or not Nam Tai will have the components it needs means it might not be able to hit its sales target for the year, the company said.
Nam Tai said that during the quarter ended March 31, it lost $3.6 million, or 8 cents per share, compared with net income of $2 million, or 4 cents per share, in the same three months a year ago.
Revenue during the quarter was $94.1 million, down 34 percent from $142.4 million a year ago.
Nam Tai said it still plans to pay a cash dividend of 7 cents per share each quarter this year.
Shares fell 55 cents to $5.08 in midday trading. The stock has traded between $4.50 and $6.75 over the last year.
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