MANILA, Philippines ? Ayala-led electronics manufacturing service firm Integrated Micro-Electronics Inc. reverted to profitability in 2009 despite a tough global market as belt-tightening measures compensated for the first-half slack in business.

IMI, which recently debuted on the Philippine Stock Exchange by way of introduction or without offering shares to the public, booked $10 million in consolidated net income last year compared to a net loss of $16.78 million in 2008.

"The year 2009 was a very challenging one for the entire electronics industry. The effects of the global economic downturn on our market, which began in the second half of 2008, ensued in 2009," IMI said in a press statement on Thursday.

The company offers core manufacturing capabilities as well as higher value competencies in design, engineering, prototyping, and supply chain management.

IMI is a vertically integrated electronics manufacturing services (EMS) provider to global original equipment manufacturers (OEMs) in the computing, communications, consumer, automotive, industrial, and medical electronics markets.

In addition to reduced volume requirements of the OEMs, the company said the EMS industry was besieged by a severe supply shortage of electronics components, as suppliers were cautious of excess inventory brought about by the market's uncertain outlook and the tight credit situation.

With the electronics sector under severe stress last year, IMI's revenues declined by 10 percent to $395.5 million over a year ago.

"It was only in the second half of the year that the industry environment began to improve, with market trends either bottoming out or posting growth, albeit at a slower pace," the company said.

Alongside the rebound in revenues in the second half of the year, IMI noted that effective cost control and operational streamlining measures allowed the company to boost a net income after tax of $10 million.

Philippine operations, particularly in the Cebu and Laguna plants, were consolidated alongside other cost reduction measures.

IMI also booked additional non-recurring income from recovery of insurance losses.

Cash generation from operations resulted in a cash balance of $53.9 million at end-2009 or about the same level as in the previous year.

The China and Singapore operations of IMI contributed 51 percent to total revenues, driven by the increase in volume for a leading Chinese original equipment manufacturer in telecommunications.

In the Philippines, IMI said it remained strong in the storage device, automotive and consumer electronics markets.