IMI profit declines due to one-off expense

Ayala Corporation’s Integrated Micro-Electronics, Inc. (IMI), one of the leading global manufacturing solutions experts, reported a decline in attributable net income to US$5.6 million in the first quarter of 2018 from the US$8.7 million earned in the same period last year.

In a disclosure to the Philippine Stock Exchange, IMI said this year’s figure includes a one-off expense of US$3.0 million attributed to the Shenzhen relocation. Excluding this, net income amounted to $8.6 million — slightly lower than last year’s performance.

First quarter 2018 revenues stood at $325.8 million, up 38 percent year-on-year buoyed by the strong revenue growth of its automotive, industrial and telecommunications segments, and contributions from its recently acquired entities.

“More than half of our first quarter growth was contributed by the capabilities-driven acquisitions in the past two years,” said IMI Chief Executive Officer Arthur Tan.

He added that, “the strategies we executed are now creating relevant scales which allowed us to expand our portfolio of expertise.”

Revenues from acquired businesses amounted to US$78.7 million in the first quarter of 2018. VIA Optronics reported $52.2 million, more than double than that of first quarter last year boosted by its top customer in the consumer segment.

STI, on the other hand, posted $26.6 million in revenues driven by the aerospace and industrial sectors which comprised 73 percent of its total revenues.

Revenues from Europe operations grew 27 percent yearon-year to US$84.5 million while Mexico revenues registered a 17 percent increase year-on-year to $22.4 million, both remain dominated by lighting, controllers and driver assistance systems from their automotive segment.

China revenues rose 23 percent to $74.5 million strengthened by new industrial applications and automotive platforms which have started to ramp up.