Integrated Micro-Electronics Inc. (IMI), led by Ayala Corporation, reported a significant reduction in losses for the first nine months of 2023. The company announced a net loss of $2.67 million, a sharp decrease from last year’s loss of USD88.85 million. Despite the improvement, revenue declined by 18 percent to USD841.01 million, down from USD1.03 billion in the same period last year.
According to IMI, approximately USD758 million of this year’s revenue came from its core businesses, which posted a 9 percent decline in sales due to challenging market conditions. “The automotive market’s continued uncertainty and industrial customers’ rightsizing of inventory have led to reduced ordering patterns and delays in new product launches,” the company noted.
IMI’s consolidated gross margin for the three quarters stood at 8.2 percent, reflecting a 63 basis point decrease compared to the previous year. When factoring in restructuring expenses and other non-operational costs, the net loss for the group reached USD9.2 million.
Additionally, VIA Optronics, in which IMI holds a 50 percent stake, faced “substantial challenges,” reporting revenues of USD83 million—down 37 percent year-over-year. This decline was largely due to reduced orders in its laptop business and losses from automotive customers, including the bankruptcy of a client in the mobility camera sector.
“We are navigating the turbulent waters of the electronics market this year with both agility and decisiveness,” said CEO Louis Hughes. He highlighted that the company has managed to reduce core fixed overhead and selling, general, and administrative expenses by about USD25 million this year. Hughes said that by operating more efficiently with a leaner support structure, IMI is positioning itself for enhanced profitability as customer ordering patterns stabilize. The company is also becoming more selective in project pursuits, focusing on areas that align with its core competencies.
