Integrated Microelectronics Inc., the electronics manufacturing arm of the Ayal Group, said it bagged new contracts in the first quarter that could potentially generate $58 million in annual revenues for the company.
IMI said in a presentation during a recent analysts briefing that the new contracts were in the automotive, aerospace, industrial and medical sectors. It said that in terms of geography, the new contracts were from the Philippines, the United Kingdom, China and Eastern Europe.
IMI reported a net loss of $4.6 million in the first quarter, as revenues fell 20.7 percent to $256 million from $323 million because of the fallout from the Covid-19 pandemic.
The situation led to lower gross profit results of $19.5 million with a 7.6-percent gross margin, a decline from 9 percent in the same period last year.
IMI said its global management teams were able to partly mitigate the negative financial impact by controlling overhead costs, reducing raw material expenses and securing ongoing support from various governments including Bulgaria, China, Czech Republic, Germany, Serbia and Singapore.
IMI’s wholly-owned businesses declined to $209 million of revenues, a 19-percent reduction from a year ago.
Hampered by government mandated shutdowns of its Chinese facilities in February and the enhanced community quarantine protocols in the Philippines that began in mid-March, revenues from Asian operating units declined by 20 percent to $105 million.
Operating sites in Europe and North America remained fully operational throughout the first quarter, but declined 15 percent in revenues as they contended with market disruptions in the global supply chain.
It said that while the overall market environment was challenging, it was pursuing additional business opportunities, particularly in the medical and telecommunications segments.
IMI said that since returning to full operational capacity in early March, IMI’s operating sites in China saw growth in demand for products used in medical equipment and 5G telecom infrastructure.
“IMI’s robust business continuity protocols allow us to smoothly adapt our operations to current circumstances while ensuring the health and safety of our employees,” IMI chief executive Arthur Tan said.
“The company’s wide geographical footprint gives us the flexibility to shift and address demands across all our regions as the pandemic situation continues to affect global markets. With our experience in high quality manufacturing, we are able to serve current demands in the medical and telecom segments that are critical during this outbreak. Despite these turbulent times, we firmly believe that the strategies we set forth in building towards a sustainable, interconnected future continue to be very relevant,” he said.
IMI has 21 manufacturing plants across ten countries.