IMI returns to profitability in Q1

Integrated Micro-Electronics, Inc. (IMI), the manufacturing arm of the Ayala group, reported a turnaround with an attributable net profit of US$2.2 million in the first quarter of the year from a net loss of US$5.57 million in the same period of 2020.

In a disclosure to the Philippine Stock Exchange, the firm said it posted a 28 percent hike in revenues to US$328 million in the first quarter of 2021 amidst tight supply levels in the electronics component market.

Sales for the same period last year amounted to US$255.82 million due to the impact of the initial stages of the pandemic.

“IMI team members across the globe continue to display the resilience that enables us to hurdle major upheavals throughout IMI’s 40-year history,” said IMI President and CEO Arthur Tan.

He added that, “As we continue to adapt to the market environment imposed by the pandemic, our entire industry is once again challenged by component shortages that have been impacting electronics companies worldwide.”

With the continued recovery of mobility and industrial end-markets, wholly-owned businesses grew 22 percent year-on-year to US$255 million.

IMI said financial performance could have been better if not for longer supply lead times on certain critical components.

The firm said its operations teams are in close coordination with customers and suppliers to recover deferred revenue opportunities. 

Non-wholly owned subsidiaries started the year with US$73 million of revenues, a 55 percent growth versus the first quarter of 2020.

VIA optronics continues to transition its business towards high growth automotive and industrial customers.

These segments had already accounted for 71 percent of display solutions revenue by the fourth quarter of 2020 and the company plans to invest in research and development to drive further growth and innovation.

On the other hand, STI Ltd. growth was driven mainly by the aerospace and defense segment. With significant project wins in previous years, and a Brexit framework now in place, STI is able to focus on ushering new businesses through the mass production phase in 2021.