IMI profit drops in Q1

MANILA, Philippines — Integrated Micro-Electronics Inc. (IMI) trimmed its profit by over a third in the first quarter due to a one-off expense, but posted higher revenues behind the robust performance of its automotive, industrial and telecommunication units.

IMI’s net income reached $5.6 million in the first three months, 37 percent lower than the $8.9 million recorded in the same period last year.

The Ayala-controlled company said its net income included a one-off expense of $3 million attributed to the Shenzhen relocation. Excluding the-one-off, net income would have remained at par with last year’s performance.

Meanwhile, first quarter revenues stood at $325.8 million, up 38 percent year-on-year buoyed by the strong revenue growth of its automotive, industrial, and telecommunication segments and contributions from its recently acquired entities.

“More than half of our first quarter growth was contributed by the capabilities-driven acquisitions in the past two years. The strategies we executed are now creating relevant scales which allowed us to expand our portfolio of expertise,” IMI CEO Arthur Tan said.

Europe operations accounted for the largest chunk of the firm’s revenues during the quarter at $84.5 million, registering a 27 percent year-on-year increase.

Revenues from acquired businesses amounted to $78.7 million.

China revenues rose 23 percent to $74.5 million, driven by new industrial applications and automotive platforms, while Philippine revenues of $66.3 million remained flat from last year as the increase in new industrial and camera businesses offset the declining demand in the security and medical device business.

Revenues from Mexico, meanwhile, registered a 17 percent increase year-on-year to $22.4 million, dominated by lighting, controllers and driver assistance systems from the automotive segment.

 “We are seeing the effects of the current component shortages across the various markets that are reflected in longer lead times resulting in higher inventory levels, increased costs to expedite deliveries and higher purchase price. But this situation has not prevented IMI from achieving its target growth,” IMI president and chief operating officer Gilles Bernard said.