IMI targets growth in industrial, medical sectors
AYALA-LED electronics manufacturing services (EMS) provider Integrated Micro-Electronics, Inc. (IMI) said it is targeting growth in the industrial and medical electronics markets.
“IMI has long been recognized as a global leader in automotive electronics. One of our goals now is to extend this expertise and absolute commitment to quality into new markets, including the industrial and medical sectors,” IMI Chief Executive Officer Louis Sylvester Hughes said in a statement to the stock exchange on Monday.
“We believe that this direction will allow us to unlock more opportunities for sustainable and profitable growth for IMI,” he added.
IMI produces electronics for the automotive, industrial, power electronics, communications, and medical segments.
In addition, IMI is exploring the warehousing and logistics support services business to strengthen its financials after its board approved an amendment to its primary purpose.
On March 7, IMI’s board approved the amendment of its primary purpose to include the provision of warehousing and logistics support services, specifically “importation/procurement, storage, deposit, and inventory management of goods for subsequent sales, transfers, or dispositions to clients, interested establishments, agencies, and/or export enterprises.”
“This is to consider additional activities for potential future transactions beyond pure manufacturing and to accommodate requests from customers,” IMI said.
The amendment will be subject to stockholders’ approval at IMI’s annual meeting on April 22.
For 2024, IMI reduced its attributable net loss by 53% to $49.79 million from $105.63 million in 2023, driven by restructuring initiatives.
Revenue declined by 17.2% to $1.10 billion in 2024 from $1.33 billion in 2023, as its wholly owned subsidiaries continued to be affected by “prolonged recovery challenges in the automotive and industrial markets.”
IMI recorded a $13.3-million net loss from its 50%-owned subsidiary VIA Optronics, including one-time expenses of approximately $4.3 million for headcount rationalization and the delisting process from the New York Stock Exchange.
“2024 was a transformative year for IMI as we took decisive steps to position the company for sustainable growth in a rapidly evolving market. While the restructuring efforts resulted in one-time expenses, they were essential to creating a leaner, more agile organization,” Mr. Hughes said.
IMI previously announced the closure and rationalization of its facilities in California, Malaysia, Singapore, Japan, and Chengdu, China, to optimize its global footprint.
“We are already starting to see positive results from our initiatives, and we look forward to seeing the full effect of these actions in the years to come,” Mr. Hughes said.
Ayala Corp. Chief Financial Officer Alberto M. de Larrazabal recently said the conglomerate remains committed to IMI despite its losses, citing its efforts to return to profitability.
On Monday, IMI shares closed unchanged at P1.50 apiece. — Revin Mikhael D. Ochave
