{"id":330245,"date":"2024-11-05T15:21:51","date_gmt":"2024-11-05T07:21:51","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=330245"},"modified":"2024-11-05T15:21:53","modified_gmt":"2024-11-05T07:21:53","slug":"trade-the-news-imi-trims-net-losses-to-cut-costs-by-25-million","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/trade-the-news-imi-trims-net-losses-to-cut-costs-by-25-million\/","title":{"rendered":"Trade the News: IMI trims net losses, to cut costs by $25 million"},"content":{"rendered":"\n
Potential Impact of this News<\/strong><\/td>NEGATIVE on the stock price<\/strong><\/td><\/tr>
Company<\/strong><\/td>Integrated Micro-Electronics, Inc.<\/td><\/tr>
Stock Code<\/strong><\/td>IMI<\/td><\/tr>
Long-term Recommendation on the Stock<\/strong><\/td>Hold<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 5.80<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

Integrated Micro-Electronics, Inc. (IMI) trimmed its attributable net loss for the third quarter to $467,000 from $1.6 million a year ago, following rightsizing efforts and lower operating expenses.<\/p>\n\n\n\n

Revenue from July to September dropped by 19.2% to $275.21 million from $340.75 million last year, IMI said in a statement to the stock exchange on Monday.<\/p>\n\n\n\n

Operating expenses fell by 26.9% to $21.75 million from $29.74 million in 2023.<\/p>\n\n\n\n

IMI also reduced its nine-month attributable net loss by 89.2% to $9.24 million from $85.26 million a year ago, which included restructuring expenses and other non-operational one-offs.<\/p>\n\n\n\n

\u201cWhile securing order demand remains a challenge, we have managed to mitigate the impact of the headwinds we face. Through targeted rightsizing initiatives, we have been able to reduce core fixed overhead and selling, general, and administrative expenses, which will result in approximately a $25 million annualized reduction for the year,\u201d IMI Chief Executive Officer Louis Sylvester Hughes said.<\/p>\n\n\n\n

Revenue for the January to September period went down by 18.6% to $841.02 million from $1.03 billion in 2023 due to rightsizing efforts and lower utilization.<\/p>\n\n\n\n

The company\u2019s operating expenses also decreased by 9.5% to $73.48 million from $81.16 million a year ago.<\/p>\n\n\n\n

\u201cThe automotive market\u2019s continued uncertainty, coupled with industrial customers\u2019 rightsizing of inventory levels, has led to reduced ordering patterns and pushouts of new product ramp-ups. These have resulted in lower utilization across multiple IMI sites, affecting profitability for the company,\u201d IMI said.<\/p>\n\n\n\n

VIA optronics AG, in which IMI has a 50% stake, saw a 37% decline in revenue to $83 million as of September due to a weaker laptop business, loss of orders from some automotive customers, and the bankruptcy of another customer in the mobility camera segment.<\/p>\n\n\n\n

IMI said VIA is implementing restructuring initiatives to boost profitability. In April, VIA notified the New York Stock Exchange of the planned voluntary delisting of its American depositary shares.<\/p>\n\n\n\n

(News Source: Business World<\/a>)<\/em><\/p>\n\n\n\n

<\/div>\n\n\n\n

This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Take advantage of the price opportunity that might arise when the news hits. Trade the news!<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1371],"tags":[],"class_list":["post-330245","post","type-post","status-publish","format-standard","hentry","category-trade-the-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330245","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=330245"}],"version-history":[{"count":1,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330245\/revisions"}],"predecessor-version":[{"id":330247,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330245\/revisions\/330247"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=330245"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=330245"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=330245"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}