IMI back in the black with $16.4-M nine-month profit

Integrated Micro-Electronics Inc. (IMI) is back in the black.

The Ayala-led global electronics manufacturing services company turned last year’s $1.1-million loss into a $16.4-million core net profit in the first nine months of the year, fueled by smarter cost management, streamlined operations and higher production efficiency.

In a stock exchange report on Friday, IMI said total revenues for the period reached $749 million, with $679 million coming from core businesses.

Core earnings before interest, taxes, depreciation and amortization remained healthy at $49.8 million, representing a 7.3 percent margin.

Robust cash generation

IMI also strengthened its balance sheet with robust cash generation, posting $82.6 million of operating cash flow year-to-date.

The company further reduced loans by $26.2 million in the third quarter, adding to the $34.5 million already repaid in the first half of the year, which brought net debt down to $124 million in September from $199 million at the start of the year.

“The substantial improvement in financial performance is a result of decisive steps taken by the IMI leadership team to improve operational efficiency and rationalize costs. Part of these efforts is the recently concluded sale of IMI Lumin Czech Republic, which contributed to lowering overhead expenses without sacrificing operational scale,” the company said.

To recall, IMI plans to consolidate two Shenzhen sites into a single facility to optimize overhead costs and drive margin improvement through increased asset utilization and operational efficiency in the region.