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Integrated Micro-Electronics, Inc. (IMI), a global leader in electronics manufacturing services, announced its financial results for the first half of 2024, highlighting strategic initiatives amidst challenging market conditions.
IMI reported group revenues of US$566 million for the first half of 2024, reflecting an 18% decline compared to the same period last year. This decrease is partly attributed to the divestment of STI, which was still part of the group in early 2023. The delayed ramp-up of new projects also contributed to lower utilization levels, resulting in a 1H gross margin of 8.5%. While the wholly-owned subsidiaries have remained net positive, non-core activities continue to face challenges for the period. The group reported a net loss of US$8.8 million for the first half of 2024.
Market softness in the industrial sector has affected IMI's Philippine operations, with reduced demand from end markets delaying customer launches of new models as the supply chain continues to trim down existing inventory levels. In response, IMI continues to optimize its customer portfolio by reducing involvement in lower-margin projects, aiming to enhance profitability and focus on higher-value opportunities within its pipeline. Rightsizing initiatives have helped mitigate revenue declines as corporate structures are realigned with current business dynamics.
Louis Hughes, CEO of IMI, commented, "We have initiated various activities aimed at fortifying our financial health, enhancing operational effectiveness, and delivering greater value to our stakeholders. These measures include streamlining operations through simplified organizational structures to enhance decision-making agility. We are also focused on eliminating inefficiencies to lower operational costs without compromising the manufacturing quality that defines IMI's reputation as a leader in the EMS space. Our management teams are actively leveraging IMI's core competencies by sharpening focus on target business areas and reallocating resources toward high-growth, high-margin segments."
IMI remains committed to navigating market challenges with resilience and strategic foresight, ensuring continued innovation and customer satisfaction across its global operations.
