IMI president and chief executive officer Arthur Tan said the company’s year-to-date income has already amounted to $16 million, up 70 percent from the previous level.
"The global electronics market has recovered. The automotive business is also picking up. All these are expected to benefit us. Recent acquisitions are also expected to contribute significantly to bottom line," Tan said.
Last year, IMI generated sales of P10 billion or an increase of 623 percent from the previous year, fueled by increased volume orders from key Japanese customers and the conversion of some customers from consignment to turnkey arrangement. Increased global demand for combination drives, super multimedia-drives for laptop PCs and liquid crystal displays pushed volume orders higher.
IMI acquired Speedy Tech Electronics and Saturn’s Cebu operations last year. Speedy-Tech manufactures printed circuit board assembly (PCBA) and box-build services, and is an original design manufacturer (ODM) of power electronics solutions used in telecommunications and various consumer electronic devices.
IMI has earmarked $20 million this year for its capital expenditures, including the planned acquisition of a small local electronics company in July.
Tan said negotiations are ongoing between IMI and the local electronics company and that a deal is expected to be closed in a month’s time. "It may be small but this acquisition is strategic for us," Tan said.
IMI said the company hopes to raise $100 million to $150 million from the maiden offering of its shares abroad, possibly in Singapore. The public offer, he said, may take in 2007 or 2008, depending on market conditions.
IMI is also looking at entering into an agreement with another company based in the Southeast Asian region following its deal with Speedy-Tech.
IMI currently has a business presence in Singapore, China and the United States.
With the agreement with Speedy-Tech, IMI projects to record revenues of $500 million in the next three to four years from its international operations.
The deal will expand IMI’s geographic presence as it gains access to the China market. It will also aid in diversifying its customer base as there is little customer duplication between the two entities. IMI’s customers are largely Japanese while Speedy-Tech’s are from the US, Europe and China.
IMI offers one-stop electronics manufacturing services with capabilities in product development, prototyping, box-build, component assembly, sub-assembly, PCBA, plastic injection, metal stamping and supply chain management. The company has manufacturing operations in Laguna and Cebu as well as design centers in Manila, Tustin, North America and a support center in Singapore .
IMI has been expanding operations as it aims to be a leading global complete manufacturing solutions provider.