IMI Income Up 36% in 1Q2015
Laguna–(PHStocks)– Integrated Micro-Electronics Inc. (PSE: IMI), one of the leading worldwide providers of electronics manufacturing services (EMS) and power semiconductor assembly and test services, has reported a net income of $6.8 million for the first quarter of the year, up by 36 percent year-on-year despite foreign exchange headwinds.
Improvement in net income was mainly driven by the company’s focus on higher margin segments, productivity and cost saving efforts. Reported revenues of $201.2 million, slightly declined by 2 percent year on year but increased by 3.5 percent quarter on quarter.
“Our net income for the quarter increased year on year as we continue to strive to be at the forefront of innovation and maintain industry leadership,” said Arthur Tan, IMI president and chief executive officer. “As we press on, we look forward to line expansions in Bulgaria, Jiaxing and Mexico to cater to increased demand in our target market of automotive electronics.”
The company’s Europe and Mexico operations generated $68.9 million revenues in the first quarter, a 3 percent improvement year on year, even as a weaker euro tempered gains from the company’s growing automotive business in Bulgaria. Excluding the impact of year over year changes in foreign exchange rates, total revenue in the region would have increased by 19 percent.
IMI China’s $68.8 million revenues saw a 5.9 percent reduction year over year due to slower growth of the country’s 4G telecommunications sector after the strong ramp up of the 4G rollout to major cities in 2014.
The EMS operations in the Philippines posted $52.7 million in revenues, a decrease of 3.7 percent from that of the same period of last year due to softer demand from the computing sector.
Jerome Tan, IMI chief finance officer, says, “The weakness in euro affects the company’s revenues, but due to our strategy to match our costs with the same currency and our global diversification, its impact on our profit is lessened. Our new business pipeline remains healthy, and we expect to be on track for the medium term growth with significant multisite new businesses awarded recently.”
The company’s balance sheet at the end of March 2015 remains strong, with improvement in the current ratio and debt-to-equity ratio of 1.76:1 and 0.35:1, respectively, from 1.73:1 and 0.41:1 at the end of December 2014.
IMI earlier reported that it now ranks 18th, having moved up from its previous rank of 21st, 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. It also ranks 8th among the top 10 EMS providers in the automotive market based on 2013 EMS revenues according to New Venture Research Corp.