IMI Profits Up 209% in First Nine Months
November 08, 2012, Laguna, Philippines – Integrated Micro-Electronics Inc. (IMI), a leading worldwide provider of electronics manufacturing services (EMS) and power semiconductor assembly and test services (SATS), has announced that its net income for the first nine months of 2012 reached US$5.0 million, up 209 percent from US$1.6 million in the same period last year due mainly to business expansion in Europe and Mexico, better capacity utilization of China plants, and reduced overall operating expenses.
Its consolidated sales revenues of US$495.7 million increased by 18 percent in the nine months to September.
Arthur Tan, IMI president and chief executive officer, said, “Despite a highly fragile global economy, we expanded our revenues and net income on acquisitions as well as business expansions of key customers.”
Subsidiaries in Europe and Mexico recorded US$131.7 million in revenues in the first nine months of the year, while another subsidiary PSi Technologies Inc. contributed US$36.8 million.
The company’s operations in China and Singapore generated US$210.6 million in combined revenues, a slight decrease of 1.5 percent year-on-year due to reduced volume in a telecommunication infrastructure program and delay in the production of new models for an industrial electronics program.
The Philippine operations posted US$117.7 million in revenues, slightly lower by 0.4 percent year-on-year due to weaker sales to the computing and industrial sectors.
The company’s balance sheet remains strong with a cash balance as of end-September 2012 of US$46.2 million. Current ratio and debt-to-equity ratio are 1.6:1 and 0.4:1, respectively.
IMI’s revenues for the third quarter of 2012 decreased by 2 percent from that of the preceding quarter, while net income declined by 18 percent. Year-on-year, revenues in the third quarter of the year increased by 8 percent, while net income went up by 297 percent.
Tan said, “IMI has ridden out gloom-doom-and-boom cycles as best as the next EMS provider. As such we maintain our cautious optimism in the short and medium term.”
He explained, “First, the world cannot but increasingly run on the power of electronics as it marches to the future. Second, the numbers on worldwide EMS forecasts until 2016 show that the EMS industry revenues will continue to grow albeit at a slower compounded annual growth rate.”
“Lastly, IMI is set to meet the world’s demand for sophisticated applications of electronics, connectivity, miniaturization, and green technologies.”
“Key to IMI’s survival and success in a highly volatile global economy is its ability to adapt quickly to developments,” added Tan.
IMI, which operates in 17 manufacturing sites around the world, has intensified its participation in high-margin markets for electronics like telecommunication infrastructure, automotive, and industrial. It continues to be a preferred supplier of key global original electronic device makers like Bosch and Philips Lighting.
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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