IMI 2016 profit dips 2% to $28.1M

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THE Ayala Group’s semiconductor firm Integrated Micro-Electronics Inc. (IMI) reported a slight dip in profits last year due to acquisition-related costs and the foreign exchange impact of the renminbi or yuan.

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In a statement on Thursday, IMI said its net income last year dipped by 2 percent to $28.1 million from $28.8 million in 2015.

Consolidated revenues improved by 3.6 percent to $843 million from 2015’s $814 million.

“Despite challenges in the global economic environment and the ongoing portfolio mix changes from our Asian operations, we were able to accomplish a positive growth and improved gross profit margin by 50 basis points to 12 percent,” IMI President and Chief Operating Officer Gilles Bernard said.

“Excluding contribution from recent acquisitions, revenues went up by 1 percent, driven by strong Europe and Mexico operations reporting combined revenues of $308.0 million or 15 percent growth year-on-year,” IMI said.

Sales from its Asia operations slowed, with sales from its China operations down 6 percent to $261.4 million.

Revenue from Philippine operations also dipped by 2 percent to $221 million, as it drew away from the declining segment in computing peripherals, driving lower growth. PSi Technologies, IMI’s semiconductor assembly and test subsidiary, posted $33 million in revenues, also down by 2 percent.

“The company’s robust presence in the automotive and industrial segments equipped IMI to seize many opportunities ahead. We won new projects in 2016, mostly from those segments, a 23 percent growth from the previous year,” said Arthur Tan, IMI chief executive officer.

“As we press on, we look forward to entering new industries and reinventing our existing businesses. Our global acquisitions over the years have strengthened our ability to support the different regions where we operate, with our various capabilities,” he added.

The acquisition that weighed on IMI’s earnings in 2016 was its purchase of a 76 percent stake in VIA optronics GmbH (VIA) for 47.4 million euros or about $53.78 million, which was transacted in August last year.

IMI’s acquisition of the global optical bonding and display solutions provider is seen to boost its growth and present more opportunities in other segments, such as offering complementary automotive camera and display monitor solutions for advanced driver assistance systems for its automotive business.

Started in 1980, IMI is an Ayala Corp. subsidiary engaged in the business of manufacturing semiconductors and electronic devices.

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