IMI reports 76% drop in income

Electronics manufacturing service firm Integrated Micro-Electronics Inc. booked a 76-percent year-on-year drop in first-semester profit to $1.1 million due to higher input and labor costs.

This was despite the 39 percent year-on-year jump in revenue to $262.5 million brought about by the strong performance of its China operations and the additional revenue from PSi Technologies Inc.

For the second quarter alone, net income attributable to equity holders of parent amounted to $761,000, down from $1.49 million in the same period last year. Revenue in April to June was up to $139.5 million from $98.27 million in the same period last year.

“We managed to grow our revenue and stay profitable despite a still fragile global economy. The vibrant and challenging times compel us to give more focus on operational excellence to increase productivity and reduce costs,” IMI president Arthur Tan said.

The company’s operations in China and Singapore recorded $143.3 million in revenue for the six-month period, up by 23 percent from a year ago. This was attributed to new “turnkey” programs for major customers.

“Turnkey” refers to an arrangement that provides all manufacturing and supply chain services, including material acquisition, assembly, test, and after-market service and warranty support.

Cash balance at the end of the period amounted to $32.7 million.—Doris C. Dumlao