Ayala-led Integrated Micro-Electronics Inc. (IMI) said its losses in January to September narrowed to $5.32 million from last year’s $11.93 million, partly as a result of the recovery in its revenues.
Revenues grew 23 percent to $972.97 million, from last year’s $788.62 million.
For the third quarter alone, it still posted a loss of $1.27 million from last year’s income of $9.1 million.
The company said it recorded $326 million in revenues in the third quarter, a sequential 2-percent growth against the previous quarter and 4 percent better than last year’s $312.44 million.
Customer orders and the project pipeline remain robust as demand for electronic products outpaces global supply, it said.
Additional growth and business margins are still suppressed by challenges in the supply chain as new rounds of government mandated restrictions slow down the recovery of major suppliers in the component industry. Global freight expenses have also risen with widespread port congestions and shipping container shortages hindering international operations, the company said.
“Customer demand is still strong and we continue to win projects in strategic segments of the industry. However, the extended component shortage is forcing us to delay a significant amount of business,” IMI President Jerome Tan said.
“Just as supply chain challenges were starting to show signs of easing, rising Covid-19 delta cases in chip manufacturing regions has pushed back the recovery timeline. The situation has been further complicated by global shipping bottlenecks and expensive logistic expenses in 2021.”
Tan said the industry expects a “staggered recovery” in 2022, when manufacturers expect to clear the order backlogs in their facilities. “In the meantime, we continue to collaborate with customer and supplier partners as we navigate this challenging operating environment.”
The company said its wholly-owned businesses had revenues of $249 million in the third quarter, a 5-percent growth from last year. Meanwhile, VIA Optronics and Surface Technology International (STI Ltd.) revenues reached $77 million for the quarter, a 4 percent year-on-year growth.
“With order books continuing to show strength, IMI management teams across the globe are balancing the need to bolster manufacturing and technological capabilities while also driving efficiency and minimizing operational expenses.”