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Philippine mfg firm posts 40% revenue rise

Posted: 12 Mar 2012 ?? ?Print Version ?Bookmark and Share

Keywords:sales revenues? EMS? SATS? manufacturing operations?

Philippine-based electronics company, Integrated Micro-Electronics Inc. (IMI), has posted a 40 percent increase in sales revenues for 2011. IMI is an electronics manufacturing services (EMS) and power semiconductor assembly and test services (SATS) provider.

The company recorded $575.5 million in consolidated sales revenues in 2011 from $412.3 million in 2010.

According to IMI, the above-industry average revenue growth was due to increased turnkey businesses in China, strong growth in the automotive and industrial segments for the Philippine operations and additional revenues from PSi Technologies Inc. and IMI's new entities in Europe and Mexico.

Against a backdrop of weak global economic growth, higher material and direct labor costs caused IMI's margins to decline, resulting in a consolidated net income of $3.3 million, 31 percent lower than last year.

Arthur Tan, IMI president and chief executive officer, said, "Despite a global economy saddled with Eurozone struggles and U.S. weaknesses, we grew our revenues. IMI remained profitable in spite of a very volatile marketplace."

Tan added that by expanding its global footprint in 2011, IMI has achieved a diversity of marketplaces, serving varied segments of the electronics industry in different parts of the world. "This lessens the impact of any market downturn on our overall performance," he said. "Further, we have gained a good mix of customers, which means that we are not heavily weighed down by a single customer or market or site."

The company's operations in China and Singapore posted $279.7 million in combined revenues in 2011, a 12 percent year-on-year growth due mainly to new turnkey programs for major customers.

The Philippine operations generated $154.2 million revenues, an 8 percent increase from 2010 due to strong programs in the automotive and industrial sectors. Towards the end of the year, IMI's assembly operations for the storage device manufacturers also increased, as hard disk drive manufacturers in flood-plagued Thailand transferred production to the Philippines.

PSi Technologies, a semiconductor assembly and test-service provider acquired by IMI in 2012, contributed $74.0 million revenues for the whole year. Sales posted by the entities in Bulgaria, The Czech Republic and Mexico totaled $66.2 million from August to December of 2011.

IMI's fourth quarter 2011 revenues of $155.4 million slightly decreased by 1 percent from $157.6 million of the previous quarter. The resulting net income of $2.8 million is higher than the third quarter's income of $0.5 million arising mainly from income related to acquisition of EPIQ subsidiaries and mark-to-market gains on derivatives.

"We continued to maintain financial stability, ending the year with a positive cash balance of $54.1 million," said Tan. IMI's current ratio and debt-to-equity ratio are 1.5:1 and 0.42:1, respectively.

"We are cautiously optimistic for 2012 in the face of market uncertainty. We bank on our expanded reach and capability, and our growing presence in high-margin and less volatile markets such as the automotive and industrial sectors," said Tan.

Tan also mentioned that one of IMI's focus industries for 2012 is the "promising" photovoltaics (PV) or solar energy industry. IMI will be manufacturing for a North American PV company at least 35megawatts of solar panels for the next three years to serve PV markets in China, India and Australia. This manufacturing program commenced February this year in IMI's plant in Jiaxing, China.

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