INTEGRATED Micro-Electronics Inc. (IMI) further narrowed its losses in 2022 to $6.76 million, improving from $10.56 million in 2021, despite continued headwinds.

“With the world moving to normalization after the pandemic, several macroeconomic challenges still lingered that significantly affected the financial performance of IMI,” company president Jerome Tan said.

“Electronic component supply levels struggled to cope with the surge in demand of the automotive market partly driven by increase in electric vehicles, thus leading to high raw material prices and inefficient utilization of facilities,” he added.

“Amid all these challenges and supply chain shortages, the situation is improving and IMI remains focused on driving increased profitability as the market continues to recover.”

IMI recorded $1.41 billion in revenues in 2022, an 8-percent improvement from P1.30 billion in 2021. Its gross profit for the fourth quarter stood at $33.30 million for a 9.1-percent margin.

For IMI’s wholly owned businesses, proactive steps were taken to streamline the supply chain, rationalize global headcount and restructure product pricing.

Its core businesses achieved a net income of $4.10 million in the fourth quarter of 2022, ending the year with $11.50 million.

A net $2.20 million in one-off gains was also booked in the fourth quarter in 2022 to align IMI’s accounting for the estimated useful life of manufacturing equipment with the rest of the industry from an average of seven to 10 years which, in turn, was partially offset by some financial provisions.

Mon-wholly owned businesses Via Optronics and STI Ltd., meanwhile, continued to face persistent headwinds in their operating environments.

The firm said that the recovery of the supply shortages, particularly for aerospace and defense, remained slower compared to other markets, and was further complicated by the recovery of the euro and the British pound against the US dollar in the fourth quarter of 2022.

The non-wholly owned subsidiaries incurred $6.10 million in losses for the fourth quarter of 2022, bringing the total to a net loss of $18.20 million for the year.

IMI’s share price went up by 10 centavos to P5 on Friday.