AYALA-LED Integrated Micro-electronics Inc. said its income last year fell 2 percent to $28.01 million (about P1.4 billion), from last year’s $28.77 million (P1.42 billion), partly as a result of transaction and financing costs related to acquisitions and foreign-exchange impact of the Chinese yuan.
Consolidated revenues reached $842.96 million (P41.7 billion) for 2016, slightly higher by 3.5 percent from last year’s $814.36 million (P40.3 billion).
Excluding acquisition, revenues went up by 1 percent, driven by Europe and Mexico operations reporting combined revenues of $308 million (P15.24 billion), or 15-percent growth year-on-year.
“Despite challenges in the global economic environment and the ongoing portfolio mix changes from our Asian operations, we were able to accomplish a positive growth and improved gross profit margin by 50 [basis points] to 12 percent,” IMI president and COO Gilles Bernard said.
The company’s operations in Asia delivered lower growth as a result of China’s slower economic activity and the company’s decision to disengage from one consumer-electronics business.
In addition, its Philippine operations also drew away from the declining segment in computing peripherals, driving lower growth, it said.
China operations posted $261.4 million (P12.93 billion), down 6 percent from last year, while the Philippine electronics services operations delivered $221 million (P10.93 billion), 2 percent lower than last year.
PSi Technologies, IMI’s semiconductor assembly and test subsidiary, posted $33 million (P1.63 billion) in revenues, down 2 percent year-on-year.
Last year IMI spent $52.3 million (P2.588 billion) on capital expenditures to build more complex and higher value-add manufacturing capabilities and growth platforms.
“The company’s robust presence in the automotive and industrial segments equipped IMI to seize many opportunities ahead. We won new projects in 2016, mostly from those segments, a 23-percent growth from the previous year,” said Arthur Tan, IMI CEO.
“As we press on, we look forward to entering new industries and reinventing our existing businesses. Our global acquisitions over the years have strengthened our ability to support the different regions where we operate, with our various capabilities,” Tan said.