AYALA-LED Integrated Micro-Electronics, Inc. (IMI) swung to a net loss in 2019 amid slower revenues held back by a declining market environment.
The listed electronics and automotive manufacturer said in a regulatory filing yesterday its attributable net loss in 2019 stood at $7.78 million, a reversal of the previous year’s income of $47.19 million.
Revenues during the year dropped 7% to $1.25 billion, which the company said was due to a slowdown in global markets and higher overhead expenditures from new investments in capacity and technical building. Operating expenses grew 10% to $106.22 million in 2019.
Revenues from IMI’s wholly owned businesses fell 3% to $1 billion. By region, operating units in Asia were the most affected with an 11% decline due to the underperformance of China’s domestic market.
IMI Europe helped slow down the group-wide revenue drop with a 3% growth, backed by a new production facility in Serbia. Another positive performer is the Mexican market, which showed a 50% jump in revenues last year.
Other members of the IMI group of companies, namely Via Optronics and STI, Ltd., had a combined revenue of $248 million in 2019, a 21% reduction from a year ago. Revenues in Via were weighed down mainly by the contraction of the computing consumer segment and the delayed release of the new generation Intel chip. On the other hand, the decline in STI revenues came from the delayed awarding of programs due to Brexit uncertainty.
Moving forward, IMI Chief Executive Officer Arthur R. Tan said the company wants to continue focusing on improving its technological capacity in hopes that it will lift the company’s finances in the future.
“Despite the continuing decline of the market environment, we are resolute in setting the bar to key technological advancements and remain ahead of the curve,” he was quoted in a statement as saying. “…I’m confident that we shall continue to win significant businesses in emerging technology platforms.”
He added, “As the adoption of these new products begins to accelerate, we will relentlessly take the necessary steps to achieve sustainable returns as we pull through this current market situation.”
IMI operates globally with manufacturing plants in the Philippines, China, Bulgaria, Czech Republic, Germany, Japan, Mexico, Serbia, United Kingdom and the United States. However, its four facilities in China suspended work in late January to early February due to the coronavirus disease 2019 (COVID-19).
Shares in IMI at the stock exchange lost 66 centavos or 10.65% to P5.54 apiece on Wednesday. — Denise A. Valdez
