IMI's 2Q revenues grow 45% YoY

Quarter-on-quarter revenues declined by 2.6% as supply constraints continued to tighten in Q2, leading to increased backlog levels vs Q1. These headwinds also led to production and supply chain inefficiencies that reduced gross margins down to 6.6% resulting to a net loss of USD 1.3 million for the quarter. The first half of the year ended with USD 647 million of revenues and net income of USD 915 thousand. “We are still navigating through turbulent waters, but we see an easing of the supply chain challenges in the 2nd half of 2021,” says IMI president Jerome Tan in a press release. “Although the issues brought about by the global component shortage affected the entire industry, we choose to focus on excelling in the areas we can control. Through rigorous collaboration with customers and suppliers, our order books remain robust with high levels of customer demand. IMI continues to build its pipeline by winning new projects that should allow us to improve performance as soon as the supply chain finds its balance.” Within the first half of 2021, new program wins for wholly-owned businesses reached an annual revenue potential of USD 254 million, already exceeding the wins from the entire year of 2020. Demand for automotive products continues to be strong with second quarter revenues doubling from last year to USD 158 million, an increase of 101%. Wholly-owned businesses posted revenues of USD 247 million in Q2, a 3% quarter-on-quarter reduction. Although customer demand had increased, longer component lead times forced the delay of several projects, resulting to IMI’s revenue backlog. Margins are likewise challenged by efficiency and logistic expenses, particularly with expedited freight costs required to meet customer demand. Non wholly-owned subsidiaries achieved revenues of USD 72 million, a 2% quarter-on-quarter reduction. For the past several months, VIA Optronics had been building up its capabilities and talent pool in preparation for the start of mass production of key automotive projects. One of these projects is expected to ramp up in the coming quarter, marked by the opening of a new manufacturing plant in Germany.