Integrated Micro-Electronics Inc. (IMI) closed the first nine months of the year with a $9.2 million loss over $841 million revenues.
The manufacturing arm of conglomerate Ayala Corp. said the loss includes “restructuring expenses and other non-operational one-offs.”
“IMI core businesses have remained profitable for the year, generating $4.3 million of net income excluding one-offs over the first nine months of 2024,” the company said in a statement.
Out of the nine-month result’s topline, IMI said $758 million was generated from core businesses “which navigated soft market conditions leading to a 9 percent decline in core sales year-on-year.”
“The automotive market’s continued uncertainty, coupled with industrial customers’ rightsizing of inventory levels has led to reduced ordering patterns and pushouts of new product ramp-ups,” it said.
“These have resulted in lower utilization across multiple IMI sites, affecting profitability for the company,” it added.
Unit VIA Optronics, in which IMI holds a 50 percent stake, reported revenues of $83 million, down 37 percent from last year.
IMI attributed the downturn mainly to reductions in its laptop business, loss of orders from certain automotive customers as well as bankruptcy of another customer in the mobility camera segment.
“To adapt to these shifting market dynamics, VIA is implementing a series of restructuring initiatives aimed at realigning costs with current market conditions. These efforts include rightsizing overhead expenses, delisting from the NYSE, deregistration from the SEC, and scaling down the company’s overall footprint. Additionally, the company’s main manufacturing facility in Suzhou is undergoing a modernization program aimed at driving efficiency and reducing costs,” IMI said.
Louis Hughes, IMI chief executive officer, said through targeted rightsizing initiatives, the company has reduced its core fixed overhead and selling, general and administrative expenses which will result in approximately a $25 million annualized reduction for the year.
“By operating more efficiently with a flatter, leaner support structure, we are positioning ourselves to enhance profitability as customer ordering patterns normalize. Furthermore, we are increasingly more selective of the projects we pursue, focusing on businesses that align with our core competencies,” he said.
Hughes said IMI is actively exploring opportunities to address issues its non-core activities face.
“Our prolific sales team is also actively looking to grow our industrial segment and bring better balance to the portfolio concentration within our business,” he added.
