Ayala-led Integrated Microelectronics Inc. (IMI) is focusing on a hundred percent growth in profits this year as it gears up for its expansion and consolidation of local operations to improve efficiencies for next year.
IMI is set to double profits in 2014 from its $10 million net income in 2013. The company’s first half net income this year increased more than five times to $11.3 million from $2.1 million in the same period last year.
Arthur Tan, IMI president and chief executive officer, said the company has set a higher capex for next year in line with its expansion program. No amount was mentioned.
Tan said the company would be focusing on expansion and consolidation of its local operations to improve efficiencies and increase its margins for next year.
In the first seven months of the year, IMI has already spent $14 million of its $27 million capex, according to the company’s prospectus. The amount was used mainly for its warehouse facilities, building improvements, machineries and equipment to sustain continuous plant expansion.
The prospectus added that part of the $27 million 2014 capex will be sourced from the P3 billion follow on offering that the company plans to conduct before the year ends.
Tan said 2014 would be IMI’s “recovery year.” The company’s record year was in 2007 when it booked $35.7 million in net profits.
The company said 26 percent of current revenues came from domestic operations and 74 percent from overseas operations, as follows: 30 percent from China; 37 percent from Europe; and 7 percent from Mexico.
IMI is operating at 14 different sites across the Philippines, China, Mexico, United States, Bulgaria and Czech Republic.
The company’s P3 billion follow on offering comprise of 215 million offer shares and 85 million shares for oversubscription. Offer price is at P10 per stock.
Part of the P3 billion follow on offer will be allotted for 2014 capex (P1.2 billion), business expansion (P1 billion), refinancing of debt (P200 million), and working capital (P500 million).
Established in 1980, IMI is an Ayala Corp. subsidiary engaged in the business of manufacturing semiconductors and electronic devices. The company has manufacturing presence in Asia, Europe, and North America.
IMI fully owns IMI International (Singapore) Pte. Ltd., IMI USA Inc. and IMI Japan Inc, while it holds 83.25 percent stake in PSi Technologies Inc. KRISTYN NIKA LAZO