Profits of Ayala's IMI surge 173% in first half

ABS-CBN News

Posted at Aug 08 2012 11:11 AM | Updated as of Aug 08 2012 07:11 PM

MANILA, Philippines - Integrated Micro-Electronics (IMI) said its first half net income surged 173% to $3.1 million from $1.1 million a year ago, as the Ayala-led electronics manufacturing services company improved revenues from its Philippine operations and expanded its businesses in Europe and Mexico.

In a disclosure to the stock exchange, IMI said its consolidated revenues went up by 24% to $325.7 million in the first six months of the year.

"Given the unstable state of developed economies and the slowdown in China, we managed to grow both revenues and income on demand from core customers and acquisitions," Arthur Tan, IMI president and chief executive officer, said.

Subsidiaries in Europe and Mexico contributed $85.7 million in revenues in the January to June period. Another subsidiary PSi Technologies Inc. posted $25 million in revenues.

Revenues from IMI operations in China and Singapore fell 5% to $134.9 million due to reduced volume in telecommunication infrastructure program and delay in the production of new models for an industrial electronics program.

In the Philippines, IMI's operations posted $79.5 million in revenues, 3% up from the previous year on the back of its programs in computing and consumer segments.

"Our cash balance as of end-June 2012 remains healthy at $43.9 million. Current ratio and debt-to-equity ratio are 1.6:1 and 0.4:1, respectively. Our strong balance sheet shields us against volatilities in the operating environment, and positions us well to seize growth opportunities," Tan said.

The IMI chief expressed "cautious optimism" for the global electronics industry's outlook.

"There is a positive trend of sequential growth, which is expected to linger for the rest of the year. The optimism is, however, tempered by shaky macroeconomic factors. Thus our company cannot be complacent with the performance it has recorded so far," Tan said.

For the second half of the year, Tan said IMI's manufacturing facility in Jiaxing, China will ramp up production of solar panels and automotive electronic parts.