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Integrated Micro-Electronics, Inc. (IMI) posts US$347 million of revenues for the first quarter of 2023, 4% better than the same period of the previous year. Gross margin improved from 6.5% to 8.5%, with the company posting US$ 29.4 million of gross profit for the quarter. Net loss for the quarter also narrowed from US$ 2 million last year to US$ 749 thousand in 2023.
With the manufacturing industry still feeling the effects of the component shortage, albeit with some modest improvements in lead times and purchase price variance, IMI wholly-owned subsidiaries continue to lead the company’s financial rebound with 7% of year-on-year revenue growth and US$2.6 million of net income in Q1. This was mainly driven by a 76 bps improvement of gross margins, as selling prices are now better aligned with the realities of operating costs in the manufacturing environment. Overhead cost metrics are further helped by topline growth as we see better utilization of IMI manufacturing facilities. Meanwhile, VIA optronics and STI Limited continue to face significant headwinds in their market segments but still manage to reduce their net loss from US$ 5.3 million in 2022 to US$ 3.4 million in 2023.
“By adjusting our selling prices in collaboration with our customer partners, as well as continued cost reduction initiatives, we are gradually improving the financial performance of the company. Our management teams implemented programs that significantly reduced labor and overhead costs in our operating sites while further driving manufacturing efficiency. We continue to address the issues related to elevated raw material costs and competitive labor markets, as we remain vigilant of other uncertainties in the industry.
We will be launching the production of multiple Electric Vehicle-related projects over the next two years and we continue to look for opportunities to secure market share in the EV space through our robust sales pipeline. We believe that our partnership with Zero Motorcycles, a market leader in electric motorcycles based in California, will solidify our position as a partner of choice in this emerging technology,” said IMI president Jerome Tan.
