Integrated Micro-electronics Inc. (IMI), the electronics manufacturing unit of the Ayala group, posted a 67-percent year-on-year drop in consolidated net income to $1.6 million as higher material and direct labor costs gnawed at operating margins.
However, consolidated sales revenues for the nine months ending in September grew by 43 percent year on year due to increased turnkey business in China, strong business in the automotive and industrial segments for the Philippine operations, and additional revenue from PSi Technologies Inc., as well as IMI’s new entities in Eastern Europe and Mexico.
IMI, based in Laguna, is one of the world’s leading providers of electronics manufacturing services and power semiconductor assembly and test services.
“As we continue to expand, we come closer to the compelling realization that we operate in an uncertain and competitive global economy. Given a very challenging landscape, we manage to remain profitable,” said IMI president Arthur Tan.
The company’s operations in China and Singapore generated $213.8 million revenue in the nine-month period, a 16-percent year-on-year growth due to new programs for major customers.
The Philippine operations posted $118.2 million in revenue, up by 9 percent from the same period last year due to strong programs in the automotive and industrial sectors, which compensated for the shrinking storage device business.
IMI’s third quarter revenue of $157.6 million was an increase of 13 percent from that of the previous quarter.
“We remain financially robust, with cash balance of $44.1 million at the end of the nine-month period,” said Tan.—Doris C. Dumlao