AYALA-LED Integrated Micro-Electronics Inc. (IMI) has embarked on an overseas restructuring in a bid to enhance margins and boost profitability and efficiency.
In particular, subsidiary IMI USA will enter into a partnership with California-based XLR8 Corp., a firm recognized for its prototyping expertise, IMI told the stock exchange.
IMI will channel the prototyping needs of selected customers to XLR8, while XLR8 will transition its mass production projects to IMI as its preferred manufacturing partner.
IMI USA will then discontinue its prototyping and manufacturing operations by the end of 2024 and transition its production functions across facilities in North America, Europe and Asia.
IMI will also be closing its sales office in Japan and initiating the process of dissolution of the entity to “better align support costs with business needs.”
“IMI’s extensive sales team, strategically positioned across various regions, will continue to address opportunities in Japan, eliminating the need for a physical office and reducing overhead costs,” the company said.
It added that there was also an “ongoing downsizing” of its Singapore and Malaysia offices as part of its commitment “to streamline operations and drive improved margins across its global footprint.”
For the first half of 2024, IMI managed to narrow its net loss to $8.8 million from a net loss of $83.7 million last year.
Group revenues fell 18 percent to $566 million from $692 million a year ago, partly attributed to the divestment of STI Enterprises Ltd., which was still part of the group in early 2023.
“We have initiated various activities aimed at fortifying our financial health, enhancing operational effectiveness, and delivering greater value to our stakeholders,” IMI CEO Louis Hughes earlier said when the company reported first-half results last August.
“These measures include streamlining operations through simplified organizational structures to enhance decision-making agility,” he added.
IMI shares rose 1.1 percent to P1.83 apiece on Tuesday while shares of parent Ayala Corp. soared 2.53 percent to close at P688.50 each amid a 1.48-percent gain for the benchmark Philippine Stock Exchange index.
Be the first to comment