IMI trims losses after focusing on manufacturing efficiency

AYALA-LED Integrated Micro-Electronics, Inc. (IMI) trimmed its net losses attributable to the parent company to $3.46 million after the company “streamlined its operating structure and focused on manufacturing efficiency.”

It is an improvement of around 55% from the $7.78-billion net loss incurred in 2019.

“Business performance recovered strongly in the second half as global manufacturing demand returned close to pre-pandemic levels,” IMI Chairman Jaime Augusto Zobel de Ayala said during the company’s annual stockholders’ meeting.

The company incurred a net loss of around $21.5 million in the first semester, which was offset by positive earnings of $18 million in the second half.

IMI President and Chief Executive Officer Arthur R. Tan said it is a “true testament to IMI’s continuing efforts to quickly respond in times of business disruptions.”

Meanwhile, IMI’s gross profit declined by 5.8% to $96.34 million from $106.22 million “due to the effect of revenue decline from the lockdowns.”

Revenues amounted to $1.14 billion in 2020, down by 9.2% from $1.23 billion.

Wholly owned businesses generated $867 million in revenues led by the company’s automotive segment, which contributed $490 million, while its industrial business accounted for $262 million.

Subsidiaries VIA Optronics AG and STI Ltd. recorded $269 million in combined revenues.

VIA Optronics reportedly raised nearly $100 million of gross proceeds through an initial public offering in September via a New York Stock Exchange listing.

“We see that this value-realization strategy can actually be expanded beyond VIA Optronics and into the other subsidiaries of IMI, including IMI,” Mr. Tan said.

Mr. Tan added that the company is exploring other opportunities in listing in other exchanges, especially in the United States, after noting “the uptick of technology firms with very strong background in intellectual property, both in manufacturing and in different parts of the technology road map.”

“As we gradually move into the new normal, we will continue to strengthen our manufacturing capabilities while remaining aligned with the long-term megatrends of mobility, connectivity, and smart energy that hold the key to the company’s growth and global competitiveness,” Mr. Zobel said.

On Thursday, IMI shares at the Philippine Stock Exchange went up by 0.18% or P0.02 to close at P11.36 each. — Keren Concepcion G. Valmonte