IMI Revenues Continue to Grow Despite Significant Headwinds in the Global Supply Chain

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Integrated Micro-Electronics, Inc. (IMI) posts US$326 million of revenues in the third quarter of 2021, a sequential 2% growth against the previous quarter and 4% better than the same period last year. Customer orders and the project pipeline remain robust as demand for electronic products outpaces global supply. However, additional growth and business margins are still suppressed by challenges in the supply chain as new rounds of government mandated restrictions slow down the recovery of major suppliers in the component industry. Global freight expenses have also risen dramatically with widespread port congestions and shipping container shortages hindering international operations. IMI gross margins for the 3rd quarter are at 5.6%, leading to a net loss of US$6.2 million. The first 9 months of the year ends with US$973 million of revenues and a net loss of US$5.3 million

“Customer demand is still strong and we continue to win projects in strategic segments of the industry. However, the extended component shortage is forcing us to delay a significant amount of business” said IMI president Jerome Tan. “Just as supply chain challenges were starting to show signs of easing, rising COVID delta cases in chip manufacturing regions has pushed back the recovery timeline. The situation has been further complicated by global shipping bottlenecks and expensive logistic expenses in 2021. The industry is now forecasting a staggered recovery in 2022, which is when we expect to clear the order backlogs in our facilities. In the meantime, we continue to collaborate with customer and supplier partners as we navigate this challenging operating environment,” Tan added. 

Wholly-owned businesses achieved revenues of US$249 million in Q3, a 5% growth versus the same period last year. Meanwhile, VIA optronics (VIAO) and Surface Technology International (STI Ltd.) revenues are at US$77 million for the quarter, a 4% year-on-year growth. With order books continuing to show strength, IMI management teams across the globe are balancing the need to bolster manufacturing and technological capabilities while also driving efficiency and minimizing operational expenses.