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Thursday, February 29, 2024

IMI reduced net loss to $749,000 in first quarter

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Integrated Micro-Electronics Inc., the manufacturing subsidiary of Ayala Corp., narrowed its net loss to $749,000 in the first quarter from $2 million in the same period last year despite continued component shortage and supply chain challenges.

IMI said in a stock exchange filing Tuesday first-quarter revenues reached $347 million, up 4 percent from the same period last year.

IMI said that while the global manufacturing industry was still feeling the effects of the component shortage, its wholly-owned subsidiaries continued to lead the company’s financial rebound with 7-percent of year -on-year revenue growth and $2.6 million of net income.

This was driven by improved selling prices, which are now better aligned with the realities of operating costs in the manufacturing environment. An increase in utilization rate of various IMI manufacturing facilities also helped reduce overhead cost, it said.

IMI subsidiaries VIA Optronics and STI Limited continued to face significant headwinds in their market segments, but still managed to lower their losses to $3.4 million in the first quarter of the year from $5.3 million in 2022.

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“By adjusting our selling prices in collaboration with our customer partners, as well as continued cost reduction initiatives, we are gradually improving the financial performance of the company,” IMI president Jerome Tan said.

“Our management teams implemented programs that significantly reduced labor and overhead costs in our operating sites while further driving manufacturing efficiency. We continue to address the issues related to elevated raw material costs and competitive labor markets, as we remain vigilant of other uncertainties in the industry,” he said.

Tan said over the next two years, the company plans to launch the production of multiple electric vehicle-related projects and look for opportunities to secure market share in the EV space through its robust sales pipeline.

IMI forged a partnership with California-based Zero Motorcycles in March to manufacture e-bikes in the country.

“We believe that our partnership with Zero Motorcycles, a market leader in electric motorcycles based in California, will solidify our position as a partner of choice in this emerging technology,” Tan said.

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