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Integrated Micro-Electronics, Inc. (IMI) posts US$328 million of revenue in the first quarter of 2021 amidst tight supply levels in the electronics component market. Top line sales grew 28% compared to the same period in 2020 which was impacted by the initial stages of the pandemic. Despite additional labor and freight costs spent to cover extended supply lead times, gross profit margin grew to 8.8% compared to 7.6% in the previous year. IMI closes the first quarter with US$2.2 million of net income.
“IMI team members across the globe continue to display the resilience that enables us to hurdle major upheavals throughout IMI’s 40-year history,” said IMI President and CEO Arthur Tan. “As we continue to adapt to the market environment imposed by the pandemic, our entire industry is once again challenged by component shortages that have been impacting electronics companies worldwide. IMI management teams have taken swift decisive actions to leverage our scale and global supply chain network to mitigate the impact of this headwind. I am confident that we will again emerge stronger and wiser from the challenges that 2021 brings.”
With the continued recovery of mobility and industrial end-markets, wholly-owned businesses grew 22% year-on-year to US$255 million. Financial performance could have been better if not for longer supply lead times on certain critical components. IMI operations teams are in close coordination with customers and suppliers to recover deferred revenue opportunities.
Non-wholly owned subsidiaries started the year with US$73 million of revenues, a 55% growth versus the first quarter of 2020. VIA optronics continues to transition its business towards high growth automotive and industrial customers. These segments had already accounted for 71% of display solutions revenue by the 4th quarter of 2020 and the company plans to invest in research and development to drive further growth and innovation. On the other hand, STI Ltd. growth was driven mainly by the aerospace and defense segment. With significant project wins in previous years, and a Brexit framework now in place, STI is able to focus on ushering new businesses through the mass production phase in 2021.