LAGUNA, PHILIPPINES – Integrated Micro-Electronics Inc. announced lower net income despite a jump in sales on strength in Europe and North America. The electronics manufacturing services provider reported net income fell 33% from last year to $2.1 million due primarily to lower capacity utilization in its China facilities.

IMI’s revenues increased 13% sequentially and 7% year-over-year to $185.7 million in the quarter.

The contract electronics assembler said it has begun reducing its capacity in China to reflect current demand.

IMI president and chief executive Arthur Tan said, “We continue to grow our top line and record a profit despite the unbalanced growth of the global economy. While we are affected by the slowdown in China, we take advantage of opportunities in regional manufacturing in North America and Europe.”

IMI continues to expand its operations in Bulgaria and Mexico to accommodate additional orders from its customers in the automotive sector. But in China, Tan adds, the company has started to consolidate operations to lessen the impact on its bottom line.

"Our diversification strategy is doing us good in these volatile times,” Tan said. “We are aggressively pursuing opportunities to increase both revenues and profit margins as we leverage our broadened geographic presence and expanded capabilities.”

Revenues for the first six months of 2013 are up 8% year-over-year to $350.5 million, due mainly to expansion in Europe, Mexico and the Philippines.

IMI’s China and Singapore operations accounted for 35% of the total first-half revenues, or $122.2 million, down 9% year-over-year due primarily to reduced sales in the telecommunication infrastructure segment. Operations in Europe and Mexico recorded $117.1 million in combined revenues, an increase of 37% year-over-year due to the continued expansion in automotive. Philippine operations posted $88.4 million in revenues, an 11% year-over-year growth because of strong programs in the computing, consumer, and industrial segments. PSi Technologies Inc., a subsidiary of IMI, generated $23 million revenues, down 8% from last year.

The EMS company had a cash balance of $49.8 million at the end of the second quarter.

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