IMI Posts 12.6% Revenue Growth for 2013

Laguna—(PHStocks)—Integrated Micro-Electronics Inc. (PSE: IMI), a leading worldwide provider of electronics manufacturing services (EMS) and power semiconductor assembly and test services, today announced that its revenues grew 12.6 percent to US$745 million in 2013 from US$662 million in 2012.

The corresponding net income of US$10.5 million nearly doubled from the previous year’s US$5.6 million, due mainly to the company’s strong business expansion in Europe and the Philippines.

Arthur Tan, IMI president and chief executive officer, says, “Our diversification strategy has afforded us extensive global footprint, amplified technical capabilities, and wide-ranging customers, so that despite several challenges we realized higher revenues with corresponding profitability.”

Despite subdued global economic growth in 2013, IMI outperformed the decline in worldwide electronic equipment production and global electronics outsourcing industry.

IMI’s China and Singapore operations contributed 37 percent to IMI’s 2013 revenues, posting US$277 million, at the same level as last year’s. Improvements in China’s telecommunications market in the fourth quarter proved favorable to IMI’s assembly operations of communication infrastructure devices.

Operations in Europe and Mexico generated US$235 million in consolidated revenues, or an increase of 28.9 percent year-over-year, due to the continued expansion of their automotive business.

IMI’s Philippine operations recorded US$189 million in revenues, or a 20.9 percent year-on-year growth, mainly because of increased business in the storage device market following consolidation of outsourced production of storage technology products from Japan.

PSi Technologies Inc., a subsidiary of IMI, generated US$43 million revenues, down from the same period last year by 5.5 percent due to the shutdown of nonprofitable businesses. IMI’s automotive electronics business now accounts for 37 percent of IMI’s total revenues, from 32 percent in 2012. The company’s fourth-quarter revenues rose by 19.1 percent to US$198 million from last
year’s US$166 million. The company’s cash balance is robust at US$49 million at the end of the 2013. Current ratio
and debt-to-equity ratio are 1.5:1 and 0.5:1, respectively.

“Over the next few years things are looking up for manufacturing in general and IMI in particular,” notes Tan. “The global market is coming back, and will present comprehensive and complex challenges in which electronics will play a vital role in the path to an economic recovery.”

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