© Integrated Micro Electronics Inc Electronics Production | August 04, 2020
IMI’s first half of 2020 was hampered by plant shutdowns
Philippine-based EMS provider, Integrated Micro-Electronics, Inc. (IMI), booked USD 476 million of first half revenue in 2020 as plant shutdowns in various operating regions significantly affected financial results.
Facilities in the Philippines, China, and Mexico all adhered to government mandated lockdowns to curb the spread of COVID-19. The global situation led to a 25% YoY reduction in top line sales while margins were also challenged with gross profit at USD 30.5 million equating to a 6.4% margin. The company did manage to mitigate the effects via reductions of overhead costs of about USD 10 million through streamlining initiatives and government incentives, the company details in a press release. The addition of one-time inventory provisions totaling around USD 3 million increased the total net loss to USD 21.5 million in the first half of this year. “IMI has endured through several major crises in our 40-year history. Our battle-hardened organization has built IMI for long-term success. Challenging market environments bring opportunity to those who come prepared. IMI’s flexibility and expertise in providing the best quality technology solutions will allow us to emerge stronger than we were before,” says Arthur Tan, IMI’s president and CEO. IMI’s wholly owned businesses declined to USD 367 million of revenues, a 28% slide from last year. While some operating regions faced mandatory lockdowns, operating sites in Bulgaria and Czech Republic aligned with the demand slowdown of OEM customers by exercising voluntary reduced work schedules. As the automotive market outlook remains weak in the short term, IMI’s wide product portfolio has captured the increased demand from the consumer, industrial, medical, and telecom sectors. Via Optronics and STI, Ltd. booked combined revenues of USD 109 million for the period. In time for the uptick in global laptop demand, Via’s LCD supply chain issues were resolved in the second quarter, helping the subsidiary rebound with a 47% QoQ improvement in top line sales. STI, on the other hand, faced continued demand slowdown as government pandemic response programs continues to be prioritised over aerospace and defense projects. “IMI expects a steady improvement in the second half of the year as revised customer forecasts indicate a better recovery than initially expected. The project pipeline continues to be active with USD 175 million of new business wins despite the business constraints brought about by the pandemic,” Tan concludes.