IMI ’11 net income down 31% to $3.3M

The Ayalas’ electronics manufacturing arm, Integrated Micro-Electronics Inc., posted a 31-percent decline in net profit last year to $3.3 million as high input costs gnawed at margins.

However, IMI—a leading provider of electronics manufacturing services and power semiconductor assembly and test services (SATS)—posted a 40-percent expansion in consolidated sales last year to $575.5 million despite weak global growth.

The above-industry average revenue growth was attributed by the company to increased turnkey businesses in China, strong growth in the automotive and industrial segments for the Philippine operations, and the additional revenue from PSi Technologies Inc. and IMI’s new entities in Europe and Mexico.

“Despite a global economy saddled with eurozone struggles and US weaknesses, we grew our revenues. IMI remained profitable in spite of a very volatile market,” IMI president Arthur Tan said.

Tan said that by expanding its global footprint in 2011, IMI achieved market diversity, serving varied segments of the electronics industry in different parts of the world.

“This lessens the impact of any market downturn on our overall performance,” Tan said. “Further, we have gained a good mix of customers, which means that we are not heavily weighed down by a single customer or market or site.”

The company’s operations in China and Singapore posted $279.7 million in combined revenue in 2011, a 12-percent year-on-year growth due mainly to new turnkey programs for major customers.

The Philippine operations generated $154.2 million in revenue, an 8-percent increase from 2010 due to strong programs in the automotive and industrial sectors. Toward the end of the year, IMI’s assembly operations for storage device manufacturers increased, as hard disk drive manufacturers in flood-plagued Thailand transferred production to the Philippines.

PSi Technologies contributed $74.0 million in revenue during the period. Sales posted by the entities in Bulgaria, The Czech Republic and Mexico totaled $66.2 million from August to December of 2011.

IMI’s fourth-quarter 2011 revenue of $155.4 million was 1 percent lower than the level in the previous quarter. The resulting net income of $2.8 million was higher than the third quarter’s income of $500,000 million. The growth was brought about by income related to the acquisition of EPIQ subsidiaries and mark-to-market gains on derivatives.

“We continued to maintain financial stability, ending the year with a positive cash balance of $54.1 million,” said Tan.