IMI cuts losses despite supply challenges

Ayala-led Integrated Micro-Electronics, Inc. (IMI) trimmed its second-quarter attributable net loss to $1.28 million from $16.91 million previously, as revenues grew by 45% despite the “persistently long lead times for semiconductor components.”

The company finished the April-to-June period with a topline of $319.02 million from $220.36 million the previous year. However, the latest figure is 2.6% lower than the $327.54 billion generated in the previous quarter.

“We are still navigating through turbulent waters, but we see an easing of the supply chain challenges in the second half of 2021,” Jerome S. Tan, president and chief operating office of IMI, said in a statement on Friday.

“Through rigorous collaboration with customers and suppliers, our order books remain robust with high levels of customer demand,” he added. “IMI continues to build its pipeline by winning new projects that should allow us to improve performance as soon as the supply chain finds its balance.”

The company said new program wins for its wholly owned businesses reached an annual revenue potential of $254 million in the first six months, already exceeding what it booked for the entire 2020.

Revenues for wholly owned businesses amounted to $247 million in the April-to-June period. The company noted a revenue backlog due to longer component lead times, forcing the delay of several projects.

“Margins are likewise challenged by efficiency and logistic expenses, particularly with expedited freight costs required to meet customer demand,” IMI said.

Meanwhile, non-wholly owned units generated $72 million for the quarter.

“For the past several months, VIA Optronics had been building up its capabilities and talent pool in preparation for the start of mass production of key automotive projects,” IMI said, adding that one of the projects is anticipated to ramp up in the next three months as a new manufacturing plant opens in Germany.

For the first half, IMI swung to profitability with a net income of $915,000 from last year’s loss of $21.53 million. Meanwhile, revenues grew by 36% to $646.56 million from $476.18 million.

On Friday, shares of IMI at the stock exchange closed unchanged at P8.90 apiece. — Keren Concepcion G. Valmonte