IMI Posts 43% Revenue Rise in First 9 Months
November 10, 2011, Laguna, Philippines – Integrated Micro-Electronics Inc. (IMI), a leading provider of electronics manufacturing services (EMS) and power semiconductor assembly and test services (SATS) in the world, recorded US$420.1 million in consolidated sales revenues for the nine months ended September 30, 2011, a 43 percent increase year-on-year.
The healthy revenue growth was due to increased turnkey business in China, strong business in the automotive and industrial segments for the Philippine operations, and additional revenues from PSi Technologies Inc and IMI’s new entities in Eastern Europe and Mexico.
Higher material and direct labor costs, however, caused margins to decline during the first nine months. This resulted to a consolidated net income of US$1.6 million, 67 percent lower than last year.
Arthur Tan, IMI president and chief executive officer, said, “As we continue to expand, we come closer to the compelling realization that we operate in an uncertain and competitive global economy. Given a very challenging landscape, we manage to remain profitable.”
“Our diversification strategy has given us access to more regions and markets. This flexibility helps in lessening the impact of business downturns on our performance.”
The company’s operations in China and Singapore generated US$213.8 million revenues in the nine-month period, a 16 percent year-on-year growth due mainly to new turnkey programs for major customers. The Philippine operations posted US118.2 million in revenues, up by 9 percent from the same period last year due to strong programs in the automotive and industrial sectors, which compensated for the shrinking storage device business.
PSI contributed US$61.4 million revenues from January to September of this year. Sales posted by the entities in Bulgaria, The Czech Republic, and Mexico totaled US$25.7 million covering the months of August and September.
Sequentially, IMI’s third quarter 2011 revenues of US$157.6 million increased by 13 percent from US$139.5 million of the previous quarter, resulting to a net income of US$468 thousand, lower than second quarter by 39 percent due to expenses incurred during the acquisition of the new entities in Eastern Europe and Mexico. Compared to the same period last year, the third-quarter revenues climbed 51 percent resulting to an 84 percent increase in net income.
“We remain financially robust with cash balance of US$44.1 million at the end of the nine-month period,” said Tan. The current ratio and debt-to-equity ratio are 1.15:1 and 0.35:1, respectively.
IMI will always be relevant, if not on the leading edge of the next big thing."
Arthur R. Tan, Vice Chairman and CEO
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