Zobel-led Integrated Micro-Electronics, Inc. (IMI), a global leader in electronics manufacturing services, is confident of earnings growth as it has begun to return to profitability after a change in leadership and drastic loss-cutting measures.

In a disclosure to the Philippine Stock Exchange, the firm said its net income reached $3.3 million in the first quarter of the year, compared to a $3.7 million net loss in the same period of 2024.

“The cost rationalization program we implemented has been instrumental in this quarter’s positive financial results,” said IMI CEO Louis Hughes.

He added,”We successfully managed a 14 percent decrease in core fixed overhead and SG&A (selling, general, and administrative) expenses compared to the first quarter of last year through the consolidation of sites and decentralizing functions back into our operating facilities.”

“With a more agile organization in place, we are better equipped to adapt to the dynamic market environment and further improve on the 6.5 percent EBITDA we achieved this quarter,” Hughes noted.

He also said that, “While global tariffs pose uncertainties, they also create opportunities. Our broad geographic footprint enables us to work closely with customers and adapt supply chains to mitigate these pressures. We remain focused on securing new business and further improving profitability as market conditions stabilize." IMI said, “Largely driven by the comprehensive restructuring activities that began in mid-2024, margin and profitability both improved despite the challenges in topline sales.”

Gross profit margin of 9.5 percent significantly increased against the 8.0 percent result in the same period last year.

IMI group revenues for the quarter were $248 million, with $220 million generated from wholly-owned core businesses. Sales figures declined 14 percent compared to last year due to continued softness in the electronics industry.

Driven by the significant improvement of cost structures across the group, EBITDA more than doubled year-on-year to $16.1 million from $7.0 million for a strengthened EBITDA margin of 6.5 percent.

Significant reductions in core fixed overhead and SG&A expenses – totalling US$6.1 million – drove much of the improvement. A similar restructuring approach was taken in VIA, yielding an additional $6.3 million of cost reduction mainly from selling, general, and administrative expenses.

The Euro’s appreciation against the US dollar also contributed positively to the bottom line with a group foreign exchange gain of $1.4 million.

Balance sheet improved further with an increased cash level of $115 million and continued management of debt levels. CAPEX remains disciplined with only $1.6 million spent in the first quarter.