IMI says $1-B revenue goal attainable

MANILA, Philippines - Coming off a successful maiden share offering, Integrated Micro-Electronics Inc. (IMI) of the Ayala conglomerate is not closing its doors to the possibility of hitting its $1-billion revenue goal earlier set for 2016 at a faster pace.

“You can never say never,” said IMI president and CEO Arthur Tan when asked if the revenue target can be attained by next year.

“If we go back to how we were talking at the end of 2013, we were not projecting the kind of performance that we’re going to have this year. But then all the worlds aligned,” he added.

Tan said there are plenty of geopolitical things that can happen which can positively or negatively affect businesses globally.

“The capability of the company is to be able to sustain and have the financial solvency to weather those storms and that’s what we have proven the last 34 years. If you’re an investor that’s what you’ll look for,” he said.

The Ayala-led firm has earlier set a $1-billion revenue target by 2016 which it hopes to reach by serving more energy, mobility, power, healthcare, industrial and security firms.

IMI’s consolidated revenues for the period ending September this year rose 19 percent to $650.1 million from $547.1 million a year ago. It was able to generate $745 million in revenues by the end of last year

“Growth for growth’s sake is not a good business model,” Tan said.

“We want a balanced margin and growth also. We can actually push for a very fast revenue growth but then we have to sacrifice something so we have to find a balance so that our margins are still improving while we grow,” IMI chief finance officer Jerome Tan said.

The company said it will continue to bank on the strong demand for electronics manufacturing services as well as power semiconductors to fuel revenues in the coming years.

IMI is one of the largest electronics manufacturing services, power semiconductor assembly and test services company in the world. It operates 14 manufacturing plants across seven countries globally, five of which are in the Philippines.