Reading time ( words)
Integrated Micro-Electronics Inc. (IMI) has delivered a positive revenue and operating income growth of 4 percent and 13 percent, respectively, amid a challenging environment in electronics manufacturing.
IMI's President and Chief Operating Officer Gilles Bernard said, "Despite challenges in the global economic environment and the ongoing portfolio mix changes from our Asian operations, we were able to accomplish a positive growth and improved gross profit margin by 50 bps to 12 percent."
Consolidated revenues reached $843 million for 2016. Excluding acquisition, revenues went up by 1 percent, driven by Europe and Mexico operations reporting combined revenues of $308 million or 15 percent growth year-on-year. Net income of $28.1 million was slightly lower by 2 percent year-on-year owing to transaction and financing costs related to acquisitions and foreign exchange impact of the renminbi.
The company's operations in Asia delivered lower growth as a result of China's slower economic activity and IMI's strategic decision to disengage from one consumer electronics business. In addition, its Philippine operations also drew away from the declining segment in computing peripherals, driving lower growth. China operations posted $261.4 million, down 6 percent from last year. Philippines' electronics services operations delivered $221 million, 2 percent lower than last year, while PSi Technologies, IMI's semiconductor assembly and test subsidiary, posted $33 million in revenues, down 2 percent year-on-year.
IMI continues to expand its footprint in higher complex box build offerings, while making disciplined investments to fund its growth initiatives. In 2016, IMI spent $52.3 million on capital expenditures to build more complex and higher value-add manufacturing capabilities and growth platforms. The company remains to have a strong cash position with debt-to-equity ratio of 0.74:1. With the support of shareholders and partners, IMI has the financing capability and operational momentum to sustain its future growth and competitively tap different markets and technologies on a global scale.
"The company's robust presence in the automotive and industrial segments equipped IMI to seize many opportunities ahead. We won new projects in 2016, mostly from those segments, a 23 percent growth from the previous year," said Arthur Tan, IMI Chief Executive Officer.
"As we press on, we look forward to entering new industries and reinventing our existing businesses. Our global acquisitions over the years have strengthened our ability to support the different regions where we operate, with our various capabilities," Tan added.
Integrated Micro-Electronics Inc. (IMI), a subsidiary of Ayala Corporation, is among the leading global manufacturing service providers in the world. In the automotive segment, it is the 6th largest EMS provider in the world per New Venture Research. IMI specializes in durable electronics for long-product life cycle segments such as automotive and industrial electronics. For the automotive segment, IMI delivers customized solutions for safety and security, among others. It supplies cameras that are integral technology to the advanced driver assistance systems (ADAS). For the industrial segment, it manufactures security and access control devices, power modules, and building automation, among others. From its manufacturing plants in the United States, Mexico, Bulgaria, Czech Republic, Germany, China, and the Philippines, IMI provides engineering, manufacturing, and support and fulfillment capabilities to diverse industries globally.