Ayala-led Integrated Micro-Electronics Inc. (IMI) said it posted a net loss of $11.9 million in January to September, much deeper than last year’s loss of $4.03 million, but the company said its performance will soon improve as its operations are returning to normal.
Revenues were down 16 percent to $789 million from last year’s $939.57 million.
For the third quarter alone, the company booked revenue of $312 million, slightly higher from last year’s $303.87 million, but still lower compared with $342.7 million in 2018.
Increased utilization of fixed overhead and improved manufacturing efficiency led to a significant expansion in gross profit margin from 6.4 percent in the first half to 9.7 percent in the third quarter.
It posted a net income of $9.6 million in the third quarter, but that included $2.4 million one-off gain. For the third quarter last year, the company incurred a loss of $8.75 million.
“IMI’s diverse expertise across multiple business segments, along with our wide geographical footprint, has allowed us to rebound from the pandemic stronger and faster than market expectations. With the industry’s global bounce-back only beginning, there is still work to be done but our core long-term strategies have positioned us well to take advantage of opportunities that the ‘new normal’ brings,” Arthur Tan, IMI’s president and CEO, said.
IMI’s wholly-owned businesses improved to $239 million of revenue in the third quarter, a 30-percent increase from the first half average. As United States-China trade tensions slowed down the strong performance of the telecom sector in the first half, the return of automotive and industrial demand compensated for the decline. The company also continues to gain business in the medical sector as demand for healthcare solutions rises.
IMI’s non-wholly owned subsidiaries, Via Optronics and STI Ltd., continued their strong performance with $74 million in combined revenue in the third quarter, a 35-percent improvement from the first half average. The subsidiaries are buoyed by demand from segments that establish support for the new normal: consumer mobile devices for study-from-home and work-from-home arrangements, along with ventilators and other medical products as countries continue the fight against coronavirus.
“As we had expected, the third quarter of 2020 marked the beginning of IMI’s rebound. With industry forecasts showing sustainable improvement, IMI’s commitment to disciplined execution will keep us on this path towards greater profitable growth,” Tan said.