IMI Q1 net drops 3.7% to $6.545M on product shift


AYALA-LED Integrated Micro-Electronics Inc. (IMI) on Friday said net income for the first quarter slightly shrunk as the company shifts from low-margin products to automotive and industrial technology platforms.

In a disclosure to the Philippine Stock Exchange on Friday, IMI said net income during the first three months of the year declined by 3.7 percent to $6.545 million versus $6.795 million a year earlier.

Revenues dipped by 1 percent to $199.1 million from $201.12 million in the same comparable period.

IMI, however, said revenue consequentially inched up 3.2 percent from the fourth quarter of 2015, largely because of the continuing shift in revenue mix to new platform technologies.

“The transition reflects the company’s strategy to limit some of its low-margin consumer electronics businesses and the discontinued products in computer peripherals, while recent new product introductions in automotive and industrial have just started to ramp-up,” IMI told the local bourse.

IMI’s China operations posted $66.6 million in revenue, down 3.3 percent, mainly because of the slowdown of customer demand for consumer electronics, including programs with phased out models and reaching end-of-life stage.

“The decrease was partly offset by a stronger performance of the telecom segment, which grew by 24 percent, driven by turnkey projects for various customers,” it said.

The firm’s Europe and Mexico operations generated $73.3 million in revenue, a 6.4 percent growth, as demand for automotive body controls and lighting systems in Bulgaria and Czech Republic mitigated the impact of a weaker euro.

In Mexico, revenue increased by 15 percent on higher demand for plastic injection and assembly.

Excluding the impact of changes in foreign currency rates, total revenue for the Europe and Mexico plants went up 11.2 percent.

The Philippine operations registered 2.3-percent decrease in revenue at $51.4 million. Certain programs in the automotive and industrial segments, such as automotive camera, security access controls, asset tag sensors, and lighting controls delivered robust growth that partially filled the revenue gap from computer peripherals.


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