LISTED Integrated Micro-Electronics, Inc. (IMI) trimmed its attributable net loss for the third quarter to $467,000 from $1.6 million a year ago, following rightsizing efforts and lower operating expenses.
Revenue from July to September dropped by 19.2% to $275.21 million from $340.75 million last year, IMI said in a statement to the stock exchange on Monday.
Operating expenses fell by 26.9% to $21.75 million from $29.74 million in 2023.
IMI also reduced its nine-month attributable net loss by 89.2% to $9.24 million from $85.26 million a year ago, which included restructuring expenses and other non-operational one-offs.
“While securing order demand remains a challenge, we have managed to mitigate the impact of the headwinds we face. Through targeted rightsizing initiatives, we have been able to reduce core fixed overhead and selling, general, and administrative expenses, which will result in approximately a $25 million annualized reduction for the year,” IMI Chief Executive Officer Louis Sylvester Hughes said.
Revenue for the January to September period went down by 18.6% to $841.02 million from $1.03 billion in 2023 due to rightsizing efforts and lower utilization.
The company’s operating expenses also decreased by 9.5% to $73.48 million from $81.16 million a year ago.
“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. These have resulted in lower utilization across multiple IMI sites, affecting profitability for the company,” IMI said.
VIA optronics AG, in which IMI has a 50% stake, saw a 37% decline in revenue to $83 million as of September due to a weaker laptop business, loss of orders from some automotive customers, and the bankruptcy of another customer in the mobility camera segment.
IMI said VIA is implementing restructuring initiatives to boost profitability. In April, VIA notified the New York Stock Exchange of the planned voluntary delisting of its American depositary shares.
“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,” Mr. Hughes said.
“IMI is actively exploring all opportunities to address the issues we face from non-core activities. 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.
IMI produces electronics for the automotive, industrial, power electronics, communications, and medical industries.
On Monday, IMI declined by 1.74% or three centavos to P1.69 apiece. — Revin Mikhael D. Ochave
