Integrated Micro-Electronics Inc. (IMI) has sunk into the red with a net loss of $6.2 million in the third quarter of the year, largely due to problems in its supply chain.

This is a reversal of the $9.6 million profit reported in the same period last year as the company continued to face severe delays in receiving ordered inputs from suppliers.

Revenues managed to go up by four percent to $326 million as customer orders and project pipeline remained robust due to continued strong demand for electronic products.

IMI said 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.

It also cited the significant increase in global freight expenses with widespread port congestions and shipping container shortages hindering international operations.

For the nine months to September, IMI trimmed its net loss to $5.3 million from $11.9 million as it continued to secure new projects in strategic segments of the industry.

IMI president Jerome Tan, however, said the extended component shortage is forcing the company to delay a significant amount of business.

“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, Tan said.

IMI ranks 21st in the list of top EMS providers in the world by the Manufacturing Market Insider based on 2020 revenues. In the automotive market, it remains the 6th largest EMS provider in the world per New Venture Research. I

The company specializes in highly reliable and quality electronics for long product life cycle segments such as automotive, industrial electronics and more recently, the aerospace market.

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Ayala electronics arm swings to loss in Q3 amid supply chain woes
Source: Filipino Daily Inquirer