SAN JOSE, Calif.--IMP Inc. today announced it returned to profitability in the company's third fiscal quarter, ended Dec. 26, with a net income of $64,000 on net revenues of $8.9 million. A year ago, the struggling analog chip maker posted a net loss of $188,000 on revenues of $9.8 million.
"We have begun the re-engineering of our development process for standard products with a focus on time-to-market by incorporating and leveraging industry best practices," said Brad Whitney, president and chief executive officer of IMP. "This, in addition with our renewed focus on wafer foundry services and attention to cash management, forms the basis of our business strategy."
As part of its turnaround effort, IMP has become a key foundry supplier to Teamasia Semiconductors (India) Ltd., which supplies discretes and analog ICs in the Asian market. Teamasia took a 16.7% stake in IMP as part of the foundry alliance. But now, shareholders are being asked to vote on an additional investment by Teamasia, which if approved would make the Indian chip company the majority owner of IMP (see Dec. 20 story).
IMP said it would hold a shareholder meeting in the next five months to seek approval of Teamasia's second stock purchase agreement. Teamasia has agreed to make a second equity investment of $5.98 million in cash for 5.5 million shares of IMP.