Ayala semicon firm’s profit down 33% in 1H

Ayala-owned Integrated Micro-Electronics Inc. (IMI), a provider of electronics manufacturing services (EMS) and power semiconductor assembly and test services, announced that its net income of $2.1 million for the first six months of 2013 is 33-percent lower compared with the same period last year due primarily to lower capacity utilization in its China facilities.

Its revenues, however, reached $350.5 million, an 8-percent year-on-year increase due mainly to the company’s strong business expansion in Europe, Mexico, and the Philippines.

Arthur Tan, IMI president and chief executive officer, said, “We continue to grow our top line and record a profit despite the unbalanced growth of the global economy. While we are affected by the slowdown in China, we take advantage of opportunities in regional manufacturing in North America and Europe.”

IMI continues to expand its operations in Bulgaria and Mexico to accommodate additional orders from its customers in the automotive sector. But in China, Tan added, the company has started to consolidate operations to lessen the impact on its bottom line.

“Our diversification strategy is doing us good in these volatile times,” said Tan. “We are aggressively pursuing opportunities to increase both revenues and profit margins as we leverage our broadened geographic presence and expanded capabilities.”

IMI’s China and Singapore operations accounted for 35 percent of the total first-half revenues or $122.2 million, a decline of 9 percent year-on-year due primarily to reduced sales in the telecommunication infrastructure segment.

Operations in Europe and Mexico recorded $117.1 million in combined revenues, an increase of 37 percent year-over-year due to the continued expansion of the company’s automotive business.

IMI’s Philippine operations posted $88.4 million in revenues, an 11 percent year-on-year growth because of strong programs in the computing, consumer, and industrial segments.

PSi Technologies Inc., a subsidiary of IMI, generated $23.0 million revenues, down from last year by 8 percent.

IMI’s revenues increased by 13 percent to $185.7 million in the second quarter of 2013 from $164.8 million in the preceding quarter.

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