IMI’s First Half Income Up 173%

Laguna—(PHStocks)—Integrated Micro-Electronics Inc. (PSE: IMI), a leading worldwide provider of electronics manufacturing services (EMS) and power semiconductor assembly and test services (SATS), has announced that its first-half 2012 net income increased 173 percent to US$3.1 million from US$1.1 million in the same period last year, amid a highly fragile global economic scenario. The income growth is due primarily to the company’s business expansion in Europe and Mexico, increased business from the Philippine operations, and reduced operating expenses.

IMI’s consolidated sales revenues of US$325.7 million improved by 24 percent in the six months to June.

Arthur Tan, IMI president and chief executive officer, said, “Given the unstable state of developed economies and the slowdown in China, we managed to grow both revenues and income on demand from core customers and acquisitions.”

IMI’s subsidiaries in Europe and Mexico contributed US$85.7 million revenues in the first six months of 2012, while PSi Technologies Inc., another IMI subsidiary, recorded US$25 million in revenues.

The company’s operations in China and Singapore contributed US$134.9 million in combined revenues, or a drop of 6 percent year-on-year due mainly to reduced volume in a telecommunication infrastructure program and delay in the production of new models for an industrial electronics program.

IMI’s Philippine operations recorded US$79.5 million in revenues, or a 3 percent year-on-year growth because of strong programs in the computing and consumer segments.

“Our cash balance as of end-June 2012 remains healthy at US$43.9 million,” Tan said. “Current ratio and debt-to-equity ratio are 1.6:1 and 0.4:1, respectively. Our strong balance sheet shields us against volatilities in the operating environment, and positions us well to seize growth opportunities.”

IMI’s revenues for the second quarter of 2012 increased by 14 percent from that of the first quarter. Net income also improved by 164 percent.

Tan maintained that the general outlook for the global electronics industry is one of cautious optimism. “There is a positive trend of sequential growth, which is expected to linger for the rest of the year,” he said. “The optimism is, however, tempered by shaky macroeconomic factors. Thus our company cannot be complacent with the performance it has recorded so far.”

He added, “With a constant drive to innovate, we continue to invest in process improvements and research and development initiatives to ride the trends that include increasing automotive electronic content, emerging applications of electronics for the industrial and medical fields, and the rising demand for solar panels.”

Tan cited IMI’s manufacturing facility in Jiaxing, China, which is ramping up production of solar panels and automotive electronic parts in the second half of the year.

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