IMI targets $1B in revenue by ’16

Ayala-led Integrated Microelectronics Inc. sees itself growing into a $1-billion company by 2016 as it prepares to ride the global economic recovery.

“We’ve seen the global economy passed through the lowest trough and is now embarking on the net up cycle,” IMI president Arthur Tan told stockholders of the electronics manufacturing services company in a meeting on Friday.

Over the years, he said IMI had diversified not only in its market—previously skewed toward the computing space but now covers a wider range that includes industrial segments—but also in terms of geographical coverage.

“IMI today can lay claim to a truly broadened horizon, having realized a wider geographic footprint, fuller technical capabilities and an extensive customer range,” he said.

In 2012, IMI’s sales revenue amounted to $661 million, up by 15 percent from the level in the previous year. Newly acquired subsidiaries in Europe and Mexico contributed $182.2 million in combined revenue while affiliates in China and Singapore posted $276.7 million.

The Philippine operations generated $159.1 million while another subsidiary, Psi Technologies, contributed $45.6 million.

Net profit last year stood at $5.4 million, up from $3.3 million in the previous year.

This year, Tan said IMI would likely post better net profit, sales revenues and margins even if developed markets would remain weak.

Asked in a briefing when IMI could hit the $1-billion revenue target, Tan said this could happen by 2016.

If there would be more acquisitions in the future, Tan said they would be aimed mainly at boosting capability rather than capacity as it had already set up operations in key geographical segments.

“We will look more aggressively for pockets of growth in every region, even as we continue to leverage our presence in China, whose economy is expected to continue growing at more than 8 percent in 2013. We will also capitalize on the trend of return to regionalization as original equipment manufacturers in North America and Europe aim to lower their total cost of production,” Tan said.

IMI currently has five factories in China but it’s looking to consolidate operations to maximize capacity. While labor costs were rising in China, IMI said labor was just one of the factors under consideration as its production hubs in the mainland remained competitive. But as some of its factories in China are operating at maximum capacity and some at only 60 percent, one option under consideration is for IMI to consolidate some of these factories into a larger facility.