The .10 reported EPS beat the street by .02 (one analyst). Not remarkable.

The gross margin reported in Q3 of 11.4% was quite healthy. Reported gross margins in the past five years ranged from a high of 14.3% (2004) to a low of 9.9% (2006).

As noted by another poster, the relative weakness of consumer related products was reflected in their reduced level of business. In 2008, business sectors were reported as follows: CECP (44%), TCA (44%), and LCDP (12%).

In Q3 2009, the percentages were CECP 26%, TCA 56%, and LCDP 18%. Recovery in consumer-related items in Hong Kong, Europe, China, and the US will drive future revenue growth.

NTE's revenues reached 870 mil in 2006. In Q3 this year, at 110 mil, NTE is on track to report slightly over 400 mil in sales in 2009 at relatively breakeven operation. As revenues increase from current levels, operating margins should widen as sales again approach the 800 mil level.

With the addition of Wuxi to production capacity beginning next year, the outlook is for substantially increased revenues and profits if execution is good.

NTE reported EPS of .93, 1.55, and .68 in years 2006-8. And that was without the NTEEP repurchase.

Prior to this year's dividend suspension, NTE paid dividends for 15 consecutive years. Because of seasonal and calendar factors, the company says noticeable improvement will not appear until the second half of 2010.

specsit.

I am long NTE.