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Integrated Micro-Electronics, Inc. (IMI) posted consolidated revenues of US$1.04 billion in the first nine months of 2022, a seven percent growth compared to the same period last year. Revenues for the quarter were at US$351 million, with a gross profit of US$28.5 million for an 8.1% margin, an improvement compared to the 7.1% margin in the first half of 2022. Although challenges in supply chain headwinds have only begun to improve, price adjustment and operating efficiency initiatives by the company have shown better operating results, ending the quarter with a group net income of US$806 thousand.
IMI has executed various cost recovery programs that aim to recoup lost profits due to the increased raw material cost from the extended component shortage of the past two years. Despite continuing challenges from the weak Euro and Renminbi, and inflationary pressure in labor and energy markets, core businesses ushered improvements in financial performance, with wholly-owned subsidiaries achieving US$ 3.8 million of net income in Q3. VIA Optronics and STI Limited margins, on the other hand, have improved against the previous quarters at a slower pace as they continue to face challenging competitive landscapes; these non-wholly-owned subsidiaries ended the quarter with a combined net loss of US$ 3 million.
“Revenue growth is being driven by the automotive and industrial segments, improving 13% and 16% respectively in the first nine months of 2022 compared to last year. The company remains focused on the successful ramp-up of recent key wins in the electric vehicle space that are expected to help drive the company’s growth moving forward,” said IMI President Jerome Tan.
Nolan Johnson, I-Connect007
About a year ago, we interviewed Michael Kottke, CEO at Rocket EMS. That interview paid close attention to how Rocket EMS’ in-house software suite, Voyager, improved processes across the company. Now we’re checking in to get Kottke’s perspective on the current market’s shifting dynamics, and what he’s got his eye on as Rocket EMS moves into 2023.
Chintan Sutaria, CalcuQuote
Excess inventory is a ubiquitous issue in the electronics manufacturing services (EMS) industry, and it is made worse by the complexity and volatility of the modern supply chain. Considered an unavoidable cost of doing business, unchecked inventory cost has wreaked havoc on manufacturers without strict controls in place to keep their businesses safe. Excess inventory is not only costly for manufacturers themselves, but also for their end customers. Unwillingly, manufacturers are sometimes forced to eat this cost to avoid disrupting relationships with their customers and with the hope of making up the losses in next year’s orders from the customer.
Zac Elliott, Siemens Digital Industries Software
Let’s face it, in the past, electronics manufacturing has not been a big business for North America. A majority of electronics are assembled in Asia where supply chains and operating costs offer many economic advantages. In North America, the electronics manufacturing industry has been generally focused on lower volume, high-cost devices, while higher volume products are produced elsewhere. However, the COVID pandemic and various legislation in the U.S. are changing the situation, making electronics manufacturing in North America a more attractive option. How can factories in North America compete for the same type of manufacturing traditionally performed in lower-cost regions?