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With demand for electronics products continuing to rise, Integrated Micro-Electronics, Inc. (IMI) achieved its highest quarterly performance with a revenue record of US$347 million in the fourth quarter of 2020, an increase of 12% over the same period in 2019. The strong rebound of IMI’s focus segments, along with improved manufacturing efficiency, drove fourth quarter gross margin levels from 7.4% in 2019 to 10.3% in 2020. Non-GAAP net income of US$18.1 million was partly offset by non-operating adjustments including mark-to-market losses on minority interest put options, asset impairments, and insurance provisions, resulting in a reported net income of US$ 8.4 million for the quarter. For the full year, revenues totaled US$ 1.14 billion while net loss further narrowed to $US3.5 million.
“I am thrilled with IMI’s display of disciplined execution, delivering incredible results to close out a challenging year,” said IMI President and CEO Arthur Tan. “With a streamlined organizational structure and focus on our long-term strategies, we delivered productivity improvements, sustained operating margin expansion, and improved cash flows. I am extremely proud of every IMI team member worldwide, whose tireless and dedicated work allowed us to meet the needs of our diverse customer base in spite of this global pandemic.”
Wholly-owned businesses grew 6% year-on-year to US$262 million of revenue in the fourth quarter. The global demand for security and I-o-T products boosted industrial revenue while mobility-focused European and North American facilities benefitted from the rapid rise of global automotive production. In addition, IMI’s growing foothold in the profitable medical segment also led to increased higher margin sales for its manufacturing plants in Asia. To mitigate the effects of the pandemic, IMI successfully collaborated with local government units to secure various forms of employee related subsidies in Bulgaria, China, Czech Republic, France, Mexico, Serbia, and Singapore.
Non-wholly owned subsidiaries Via Optronics and STI Ltd. finished the year with US$86 million of combined revenues in the fourth quarter, a growth of 36% compared to the same period in 2019. Via Optronics continues its shift towards automotive display solutions by partnering with leading manufacturers in both traditional and electric vehicle spaces. Meanwhile, STI Ltd is buoyed by the continued growth of its medical segment and recovery of the aerospace and defense markets. The financial information included herein for the fourth quarter and full year 2020 for Via Optronics and STI Ltd. may change; however, IMI does not expect any such changes to be material, in the aggregate, to IMI.
“This year, we find ourselves at the forefront of key technology megatrends. We continue to expand our role in mobility, connectivity, and smart energy to enable the sweeping shift towards electric vehicles and automated driving. However, we are also cognizant of the ongoing uncertainties in the electronics manufacturing supply chain. IMI teams have been coordinating closely with our partners to ensure minimized business disruptions throughout the year. We are confident in sustaining the momentum we achieved in the second half of 2020 and we look forward to a year of profitable growth and innovation,” added Tan.