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Integrated Micro-Electronics Inc. (IMI), one of the leading worldwide providers of electronics manufacturing services (EMS) and power semiconductor assembly and test services, today announced that its net income for the first nine months of 2015 increased 5 percent to $22 million from $21 million in the same period last year.
Arthur Tan, IMI president and chief executive officer, says, “Despite the global economic slowdown and electronics industry downturn, we remained profitable in the first nine months of the year.”
“Our earnings gains resulted mainly from the company-wide operational efficiency improvements as well as the expansion of some high-margin customer programs,” Tan added.
The company’s consolidated revenues for the first nine months of $621.5 million, decreased slightly by 4 percent year-on-year. Tan said that the drop in revenues can be attributed to “a weak Euro and a downturn in the computing and telecommunications infrastructure segments.”
IMI’s Europe and Mexico operations benefitted from their robust automotive business and recorded combined revenues of $204 million for the nine-month period, a 1 percent growth year-on-year. Revenues would have increased by 17 percent if not for the weakening euro.
The EMS operations in the Philippines posted $168.5 million in revenues for the period, a 1 percent growth from $166.9 million a year ago, as the growing automotive and industrial businesses offset the decline in demand for storage devices.
IMI’s China operations recorded $214.3 million in revenues for the period, a 13 percent decline year over year as the 4G telecommunications network rollout reaches its projected volume in the country. The revenue drop was also affected by lower orders from a few consumer electronics customers.
Tan said, “We expected the decline in telecom network infrastructure capital expenditure in China. Fortunately, our businesses in the Philippines, Eastern Europe, and Mexico are doing well and compensate for the deficiency in the Chinese market.”
According to Tan, the slowdown in China’s economy affects the company’s ability to gain new programs in China but “this will be short-lived.”
He explained, “The changes that are being implemented by the Chinese government are necessary for long-term stability of their economy. China will continue to be a relevant world economic market and so IMI will continue to be dependent on it.”
Sequentially, the revenues of IMI in the third quarter of the year of $205.1 million decreased slightly from $215.1 million for the second quarter of this year.
The company’s balance sheet at the end of September 2015 remains strong. The current ratio and debt-to-equity ratio are at 1.76:1 and 0.50:1, respectively.
Integrated Micro-Electronics Inc. (IMI) is one of the leading global providers of electronics manufacturing services (EMS) and power semiconductor assembly and test services with manufacturing facilities in Asia, Europe, and North America. It serves diversified markets that include those in the automotive, industrial, medical, telecommunications infrastructure, storage device, and consumer electronics industries. Committed to cost-effective and innovative customized solutions (from design and product development to manufacturing and order fulfillment), the company's comprehensive capabilities and global manufacturing presence allow it to take on specific outsourcing needs. A subsidiary of Ayala Corporation, IMI ranks 18th on the latest list of Manufacturing Market Insider for the top 50 EMS providers in the world based on the 2014 EMS-related revenues of companies. For more information, visit www.global-imi.com.