Integrated Micro-Electronics, Inc. (IMI) posted US$357 million of revenues in the second quarter of 2022. As a result, the company registered 7 percent growth compared to Q1 of 2022 and 12 percent better year-on-year.
Domestic macroeconomic issues such as rise of inflation, skilled labor shortage, and foreign currency depreciation have aggravated industry-wide component shortage. Consequently, these headwinds have impacted IMI margins with a net loss of US$ 3.5 million for the quarter. Nonetheless, the first half of the year ended with US$ 691 million in revenues and a net loss of US$ 5.5 million for the group. Meanwhile, IMI wholly-owned subsidiaries achieved a net income of US$3.6 million.
The strength of the U.S. dollar in the second quarter has affected financial results in IMI’s European and Chinese sites that primarily book contracts in Euro, British Pound, and Chinese Renminbi. Despite these challenges, wholly-owned subsidiaries managed to remain profitable. Furthermore, they sustained their quarter-on-quarter sales recovery with US$ 290 million being a 12 percent growth against the first quarter of the year. On the other hand, VIA and STI continue to be more significantly affected by component shortage issues. Non-wholly owned subsidiaries declined 11 percent quarter-on-quarter to US$ 67 million in revenues.
“Various macro-economic headwinds continue to affect the entire electronics manufacturing industry. Our management teams across the globe have been working diligently to mitigate the effects on our business and ensure that we are well positioned to maintain IMI’s growth trajectory. By expanding our supply chain network and increasing regional access to components, we aim to reduce raw material costs and minimize reliance on expensive freight services. We are also driving profitability by rolling out industrial excellence initiatives across our facilities,” said IMI president Jerome Tan.
In addition, Tan said, “As the business environment begins to normalize, we intend to maintain our streamlined structure and further improve on the efficiency of our operations to drive profitable growth,” Tan added.
IMI marks its 42nd anniversary this month as it continues to drive productivity and innovation as a global force in manufacturing and technology solutions.