News

November 6, 2023, Laguna, Philippines — Integrated Micro-Electronics, Inc. (IMI) posts US$341 million of revenues in the third quarter of 2023, 3% lower year-on-year. The drop in demand is largely driven by a general slowdown across the electronics industry with companies tightening working capital levels amidst excess inventory in the supply chain. The company’s gross margin sits at 8.5%, with a total gross profit of US$ 28.8 million for the quarter. Q3 net loss is at US$ 1.6 million which still includes losses from STI Limited as IMI worked on closing the divestment transaction with Rcapital.

IMI wholly-owned subsidiaries ended the quarter with a net income of US$ 1.9 million versus US$3.8 million in the same period last year. Major contributors to this drop are a US$1 million inventory provision in Q3 and a US$0.9 million increase in interest expense compared to 2022. Management teams will continue to closely monitor inventory levels to mitigate our exposure and accelerate cash conversion. With STI Limited still in the process of transitioning out of the group, non-wholly-owned subsidiaries reported a net loss of US$3.5 million in the 3rd quarter.

“With the recent closing of the sale of STI Limited to Rcapital at the end of October, our management teams will be able to refocus efforts into improving margins for the core businesses and concentrate on sharpening our customer portfolio. Starting November 1, 2023, the financial results of STI Limited will no longer be consolidated into IMI figures, and the capital dedicated to supporting STI Limited will be redistributed to enable growth in our profitable business segments,” Said IMI president Jerome Tan.

“New mobility project wins from the past few years have begun to contribute to the company, with the segment growing 12% compared to 2022. Sales pipeline activity remains robust with US$ 247 million worth of annual revenue potential across all segments secured in the first nine months of 2023, a 50% improvement against the same period last year of US$165 million. We are excited to bring in new projects from both existing and new customers which we believe will allow us to further increase profitability in our business. However, we remain prudent as industry-wide uncertainties continue to affect customer forecasts and high levels of inventory in the electronics market have led to increased financing expenses.” Tan added.

About IMI

Integrated Micro-Electronics, Inc. (IMI), the manufacturing arm of AC Industrial Technology Holdings, Inc., a wholly-owned subsidiary of Ayala Corporation, is among the leading global technology and manufacturing solutions expert in the world.  Based on 2022 revenues, IMI ranks among the top 25 EMS service providers in the world per Manufacturing Market Insider, and is among the top ten automotive EMS companies per New Venture Research. 

IMI specializes in highly reliable and quality electronics for long product life cycle segments such as automotive, industrial electronics and more recently, the aerospace market.

From its 20 manufacturing plants across ten countries, IMI provides engineering, manufacturing, and support and fulfillment capabilities to diverse industries globally.

For more information, visit www.global-imi.com.