The Ayala Group’s semiconductor manufacturing arm Integrated Micro-Electronics, Inc. (IMI) reported a net loss of $3.7 million in the first quarter of 2024, or 394 percent or almost five times the $749,000 incurred in the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm said group revenues declined 16 percent to $290 million for the first quarter of 2024 from the previous year, partly due to the divestment of STI which was still contributing revenues to the company last year.
Cost rationalization activities have mitigated the drop in revenues to maintain IMI core operating margin at 2.4 percent, which sits at a similar level to 2023.
Led by the European market, IMI’s automotive segment continues its path to recovery with first revenues beating the previous year by 6 percent.
On the other hand, the industrial segment remains challenged as IMI clients are still seeing softness in their end-consumer markets. This has delayed the depletion of existing stocks in the supply chain and reduced ordering across this space for IMI.
Pockets of component shortages remain for certain parts, leading to business backlogs that will be cleared as the availability of materials continues to normalize.
The firm also announced that, effective May 1, 2024, Louis Hughes was appointed as Chief Executive Officer for IMI.
“It is an honor to take on the responsibility as CEO for a great company like IMI which has ingrained such a rich culture in its employees across the globe. The deeply rooted partnerships it has forged with key customers and suppliers in the industry are a testament to the successful history the company has built over the past four decades,” said Hughes.
He added that, “We have all witnessed the challenges that IMI has had to overcome these past several years, and I recognize the work that must be done to bring the company back to better profitability.
“Together with our new Chief Financial Officer Robert Heese, I am excited to work with the brilliant roster of talent in IMI and unitedly enact the changes necessary to bring better financial results and maximize shareholder value.”