Ayala-led Integrated Micro-Electronics Inc. (IMI) said it registered an income in the first three months of the year as sales grew, even as the pandemic wreaked havoc on the company’s main markets.
The company said it booked an income of $981,000 in the first quarter. However, the figure is just a fraction of the $5.56-million loss it incurred in the same period last year.
Revenues from contracts with customers grew 28 percent to $327.54 million, from the previous year’s $255.81 million.
Despite additional labor and freight costs spent to cover extended supply lead times, gross profit margin grew to 8.8 percent compared to 7.6 percent in the previous year, IMI said.
“IMI team members across the globe continue to display the resilience that enables us to hurdle major upheavals throughout IMI’s 40-year history,” company president and CEO Arthur Tan said.
“As we continue to adapt to the market environment imposed by the pandemic, our entire industry is once again challenged by component shortages that have been impacting electronics companies worldwide. IMI management teams have taken swift decisive actions to leverage our scale and global supply chain network to mitigate the impact of this headwind. I am confident that we will again emerge stronger and wiser from the challenges that 2021 brings.”
Wholly-owned businesses grew 22 percent year-on-year to $255 million due to the continued recovery of mobility and industrial end-markets.
The company said financial performance could have been better if not for longer supply lead times on certain critical components. IMI operations teams are in close coordination with customers and suppliers to recover deferred revenue opportunities. Meanwhile, non-wholly owned subsidiaries started the year with revenues of $73 million, a 55-percent growth versus the first quarter of 2020. VIA optronics continues to transition its business towards the high-growth automotive and industrial customers. These segments had already accounted for 71 percent of display solutions revenue by the 4th quarter of 2020 and the company plans to invest in research and development to drive further growth and innovation.
STI Ltd.’s growth was driven mainly by the aerospace and defense segment. With significant project wins in previous years, and a Brexit framework now in place, STI will be able to focus on ushering new businesses through the mass production phase in 2021, the company said.
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