IMI incurs $2-million net loss amid supply chain delays
INTEGRATED Micro-Electronics, Inc. (IMI) on Wednesday reported a net loss of $2 million in the first quarter of 2022 due to supply chain disruptions.
“As the entire industry has been dealing with the global component shortage for more than a year, IMI teams across the globe continue to embody the resilience and determination that has enabled us to rebound from similar macro-economic obstacles in the past,” IMI Chief Executive Arthur R. Tan said in a statement.
The company said that supply chain delays hindered profitability but cost saving measures and continued collaboration with customers and suppliers mitigated the increased costs.
IMI did not provide a comparative year-ago figure, but it said the current loss figure “narrowed” compared with the previous quarter.
Meanwhile, revenues during the first quarter of this year grew 2% to $334 million year on year.
“Customer demand remains strong and new product development is still in high gear as evidenced by our revenue growth and strong pipeline performance despite the global supply chain issues in the past several quarters,” Mr. Tan said.
He added that the focus of the company now is on driving profitability by “collaborating with customers and improving supply chain efficiency as the component situation normalizes.”
IMI’s wholly owned businesses ended the first quarter with $258 million in revenues, or up 1% from the same period last year.
Meanwhile, its subsidiaries’ revenues improved by 4% to $76 million.
“However, with these business units having more specialized products in the automotive, aerospace and defense markets, extended supply lead times and limited opportunities to use alternative components have significantly affected margins. COVID-related shutdowns and transportation disruptions in Suzhou, China have also affected operations in VIA [Optronics GmbH],” IMI said.
In total, non-wholly owned subsidiaries reported a net loss of $5.3 million.
“The recent lockdowns in China and intense geopolitical tension in Europe have created a new set of uncertainties in the global market. Along with the extended recovery of the electronics supply chain, IMI is still being challenged by multiple macroeconomic headwinds,” IMI President Jerome S. Tan said.
“However, globally, we have been managing these disruptions while taking advantage of opportunities to improve our operations. As more economies start to open up and the world returns to normalcy, the company remains committed to manufacturing excellence and accelerating our return to better profitability,” he added.
IMI is the manufacturing arm of AC Industrial Technology Holdings, Inc., a wholly owned subsidiary of Ayala Corp.
It specializes in “highly reliable and quality electronics for long product life cycle segments such as automotive, industrial electronics and more recently, the aerospace market.”
At the stock exchange on Wednesday, IMI shares were up by two centavos or 0.29% to close at P7.00. —