IMI slashes net loss in 1st half

MANILA, Philippines — Ayala-led Integrated Micro-Electronics Inc. (IMI) significantly trimmed its net loss in the first half amid strategic initiatives to boost the company’s financial health.

IMI reported a net loss of $8.8 million during the six-month period, a reduction from the $83.66 million net loss incurred in the same period in 2023.

The global electronics manufacturing services company said market softness in the industrial sector has affected its Philippine operations during the period.

According to IMI, reduced demand from end markets delayed customer launches of new models as the supply chain continues to trim down existing inventory levels.

Revenues declined by 18 percent to $566 million partly due to the divestment of STI Enterprises Ltd., which was still part of the group in early 2023.

Delayed ramp-up of new projects also contributed to lower utilization levels, resulting in a first half gross margin of 8.5 percent.

IMI said that non-core activities continued to face challenges for the period.

In response to the challenging market conditions, the company continues to optimize its customer portfolio by reducing involvement in lower-margin projects.

IMI said that rightsizing initiatives have helped mitigate revenue declines as corporate structures are realigned with current business dynamics.

The company aims to enhance profitability and focus on higher-value opportunities within its pipeline.

“We have initiated various activities aimed at fortifying our financial health, enhancing operational effectiveness and delivering greater value to our stakeholders. These measures include streamlining operations through simplified organizational structures to enhance decision-making agility,” IMI CEO Louis Hughes said.

Hughes said IMI also focused on eliminating inefficiencies to lower operational costs without compromising the manufacturing quality that defines the company’s reputation as a leader in the electronics manufacturing services space.

“Our management teams are actively leveraging IMI’s core competencies by sharpening focus on target business areas and reallocating resources toward high-growth, high-margin segments,” he said.