Ayala says electronics unit can still raise funds

ABS-CBN News

Posted at Feb 25 2009 11:00 AM | Updated as of Feb 25 2009 08:51 PM

Even with the ongoing economic slowdown, Integrated Microelectronics Inc. (IMI) still has the capacity to raise funds on its own, according to Ayala Corp.

“IMI is relatively debt-free and has a strong balance sheet. If they need money (to fund its capital expenditure), they could always go to bank,” Ayala Corp. senior managing director and chief finance officer Rufino Luis Manotok said in an interview.

IMI is the electronics flagship company of Ayala Corp., and has manufacturing operations in the Philippines, China, and Singapore, and a prototyping facility in Tustin, California. IMI's functional currency is the US dollar.

Ayala Corp. owns 68 percent of IMI, while the balance is spread to Resins Inc. and some employees through the stock option plan.

As an export-oriented firm, IMI's sales volume has been reduced due to the global economic crisis. Despite this, however, Manotok said the company has not lost a single client, which he said "speaks well of their capability to deliver."

IMI's revenues posted a 5-percent expansion last year, owing to its strong double-digit growth in operations in China and Singapore which offset slower volumes from Philippine and US operations.

The company's operating income remained positive at $18 million, but losses from currency hedging contracts and a one-time provision for manpower expenses and inventory obsolescence expenses resulted in a $16-million loss in 2008.