Integrated Micro-Electronics Inc. (IMI), the Ayala Group’s global electronics manufacturing unit, reported a much lower net loss of $36.5 million last year from the $109.2 million loss incurred in 2023 after implementing cost reduction measures.
In a disclosure to the Philippine Stock Exchange, IMI said its revenues declined 15 percent to $1.1 billion in 2024 from $1.3 billion in 2023, with $981 million generated from core businesses.
“Wholly owned subsidiaries continued to be affected by prolonged recovery challenges in the automotive and industrial markets resulting in a 12 percent decline in sales year-on-year,” the firm said.
To align with shifting market dynamics and to position the company for sustainable profitability, IMI undertook a comprehensive restructuring initiative under the leadership of new Chief Executive Officer Louis Hughes.
The company streamlined its management structure by flattening the organizational hierarchy and enhancing accountability at all levels. Additionally, IMI optimized its global footprint by closing and rationalizing facilities in California, Malaysia, Singapore, Japan, and Chengdu.
The one-time expenses related to these activities, along with additional provisioning in the company’s balance sheet, have resulted in a core net loss of $24.6 million for the year and an additional $11.9 million related to impairment of goodwill from its non-core subsidiary.
Without these one-time expenses, adjusted net income for wholly owned subsidiaries come in at $3.7 million.
Hughes said, “2024 was a transformative year for IMI as we took decisive steps to position the company for sustainable growth in a rapidly evolving market. While the restructuring efforts resulted in one-time expenses, they were essential to creating a leaner, more agile organization.
“We are already starting to see positive results from our initiatives, and we are looking forward to seeing the full effect of these actions in the years to come.”
VIA Optronics ends the year with $118 million of revenues and $13.3 million of net loss attributable to IMI, including one-time expenses for headcount rationalization and the delisting process from the New York Stock Exchange amounting to approximately $4.3 million.
Despite facing continued challenges in the display market, the company made significant strides in innovation and partnerships. VIA collaborated with Antolin to develop “Sunrise,” a state-of-the-art integrated cockpit solution in 2024.
More recently, VIA has also partnered with JF Kilfoil, a leading firm supporting the component, interconnect, and printed circuit board manufacturers in the US Midwest electronics market. This alliance is designed to drive innovation and deliver solutions addressing touch and camera technology requirements in the US markets.
“IMI has long been recognized as a global leader in automotive electronics. One of our goals now is to extend this expertise and absolute commitment to quality into new markets including the industrial and medical sectors.
“We believe that this direction will allow us to unlock more opportunities for sustainable and profitable growth for IMI,” said Hughes.