Integrated Micro-Electronics, Inc. (OBAI) Earnings Call Transcript & Summary

All right. Good morning, everyone. Brian Jalijali here, Global Head of Investor Relations. Thanks for taking the time to join us today. We made our earnings press release last Friday, and it's another quarter of very positive news for IMI. So we're very excited to share the news and give you a bit more color on how the quarter went for IMI. I will start with a general market outlook. The headlines for the quarter are global growth is projected to slow amidst some protectionism and fragmentation in the global political economy. Whether we like it or not, the U.S. still dictates a large part of how global trade goes, how global economies go. And with the talk of the U.S. government shutdown really dominating the news, it's not hard to see how growth is slowing down in response to that. Apart from that, there are also labor issues that could further stifle growth. People see that in the U.S., in Europe and in Asia. In IMI, we are doing our best to address these issues on a regional basis. So to solve this and to alleviate the slowdown in growth, sustainable policymaking from all the governments involved is crucial in restoring confidence. We hope that U.S. takes the lead on that, but there are issues that each country can do to solve their own issues within their own country. Global inflation is going to start slowing down, 5.8% in 2024. We're seeing it at 4.2% in '25 and then further down to 3.7% in '26. Still quite a bit high for IMI. That's why you can see that we've been generating a lot of cash flow from operations in the past few quarters. A lot of that has been going into paying down loans, loans that we took out in 2024, some from '23. So we are trying to trim down our debt level and increase our net debt. Robert will talk more about that in slides later on. On the automotive side, some positive news. The European automotive market is beginning to recover, and that's a large part of the IMI's business portfolio. So that's very positive news for IMI. For the future, advanced driver ADAS systems are going to grow the market partly through government policies. You know how rearview cameras and front-facing cameras became the norm a couple of years ago. We're seeing a trend where driver monitoring cameras more and more are becoming standard and policy mandated depending on specific countries. And we see that trend continuing and that it will also become the norm in the next couple of years. There are varying standards across countries, so that will require flexibility across vehicle platforms. And that's where IMI has an advantage in that we're in multiple geographies. We specialize in high-mix business and then in that dealing with single customers that might have several different models, that's something IMI really shines in, and we are able to drive efficiency despite high-mix business. To mitigate supply chain disruptions and meet regional regulations, we see OEMs and Tier 1s really pushing for onshoring and diversifying between geographies as opposed to the model before was manufacture everything in one site and then distribute from there. We see an increase of trend -- of increase in multisite customers in that we serve customers across our Mexico, our European and our Asian sites. And again, that's something that IMI shines in, in that we're able to offer a consistent product, high quality, high reliability across all geographical regions. For the industrial market outlook, IMI's other key segment, we were seeing a shift to smart manufacturing in Industry 4.0, and that's driving demand for sensors and controllers and connectivity modules. Our bread and butter for industrial has been security systems, but we see a growing market in catering to Industry 4.0 and the demand for that. Power electronics, also increasingly relevant across multiple applications, whether it's EV charging, battery management systems, sustainable energy. That's all market that we can address not only from the EMS side, but also from the power module side. Lastly, green manufacturing trends, demand for more sustainable energy. So again, battery management systems come into play, sustainable energy in solar and wind power, all markets that IMI can address both on the EMS side and the power module side. Okay. I'll pass you off to Robert and Lau for the financials.

Good morning, everyone. It's a pleasure to be able to present some of our improving trends that were -- our company is performing in these most recent quarters. Just from a revenue perspective, overall, our revenue is up quarter-on-quarter. From the automotive segment, our Q3 revenue, we've changed the slides a bit from prior slides that we've had just to show you a little better view on the overall trend. You say we -- our revenue kind of peaked in Q4 '24 and on the automotive side had been very depressed. We're pleased to start seeing some recovery now on the automotive side of our business, where Q3 revenues are now up 6% quarter-on-quarter as we're seeing a gradual recovery in the European market. And also, we have some ramp-up in steering application products, which are helping drive our revenue. And projects secured in the pipeline that will start beginning in 2026, notably in vehicle lighting projects. On the non-automotive side, our revenue is relatively flat, up overall, but just relatively flat. But up significantly from Q4 and Q1 earlier in the year. Non-automotive business now accounts for 38% of our core revenue as we continue to drive to increase the percentage of non-automotive business just to put more balance into our revenue mix. The backlog recovery of industrial security products has been largely taken care of, but we are experiencing some low demand in certain subsegments like temperature monitoring and payment systems. But we are pursuing additional revenue streams and have added some capacity, particularly in the Philippines on plastics and the mechanical business. Next. Just on a region-by-region update, you can see a very significant improvement from our Philippines site. The backlog of industrial security projects being cleared, as I mentioned earlier. We're also -- the automotive camera business is a key market for the Philippines. And we're seeing additional business streams in ADAS applications being pursued such as for lidar modules and sensors. So 12% increase quarter-on-quarter for the Philippines. China, after the closure of Chengdu and our consolidation of Shenzhen into a single facility, we're still seeing some growth in revenue despite those consolidation activities that we've done and those increased utilization rates because of that will help drive profitability. Europe, again, is still pretty flat. We are seeing a gradual recovery in the European automotive market, but we did complete the sale of our Czech facility at the end of July, and that had some impact on our revenues. We don't have the revenue from the Czech facility, even though we did transfer some of the key customers to Bulgaria and Serbia. Mexico is down a bit from quarter-on-quarter, and that's just from weak demand on our industrial HVAC products. But this was partly mitigated by the ramp-up of our steering application business, and we'll see more of that into Q4. And our continued focus in Mexico is just driving manufacturing efficiency. I'll hand it over to Lau to go through the P&L.

Okay. Thank you, Robert, and good morning, everyone. So we are pleased to present to you the -- our company's performance for the third quarter of the year. To begin with, the upper left chart on the revenues and highlighting our core business with a total of $233 million of revenues for the quarter, which is 3% lower than the -- versus the same period of last year. Still due to the softness in the automotive electronics industry. But as mentioned by Robert, we are seeing the gradual recovery of the European automotive market in Q3, slightly offset by the transition of the Czech businesses to the remaining Europe sites. And also, we're seeing continuous growth in our industrial businesses in the Philippines. On the GP margins, as you may know, as a result of our restructuring and consolidation activities that we have done since last year, we have enhanced the utilization of our fixed overhead, which drove the significant improvement in our GP margins, while we also continue to drive the reduction in our cost structure through the negotiated material cost reductions and also improved labor productivity. And on the upper right, it shows that we have significantly improved our operating income, which was mainly driven by the increase in the gross profit by about $5.6 million for the core business. And also, we had some decrease in the core SG&A expenses by $2.2 million compared to last year, and this is excluding the one-off restructuring costs. For Q3, we don't have much one-offs except for a few thousand dollars of transaction costs related to the IMI Czech sale. So the reported operating income more or less reflects the real operating performance of the company. And finally, on the net income, as we have recently published, we reported $7.2 million of net income for the third quarter of the year and $14.8 million as of September 30, which is a significant turnaround from the last year's 9 months net loss of $9.2 million. And our net income for Q3 includes the partial gain from the sale of IMI Czech of about $2.1 million gain, which we include as one-off, but our operational performance is at par with the previous quarter. Okay. On the next slide, please, Brian. Okay. So on the EBITDA, we are now reaping the benefits from the consolidation and restructuring efforts that we have completed as it's reflected in our EBITDA numbers, both in Q2 and in Q3 of this year. The continuous initiatives that we have been doing to drive our cost down have been successful through the efforts of our management to improve operational efficiency and also rationalize the cost. And as a result, we have reported EBITDA of $19.1 million for the quarter, which was double from that of last year. And we have been improving the performance quarter-on-quarter as the market recovers. But just to note that on the core business, it has a slight decline in the Q3 EBITDA margins, and this is coming from the impact of low volumes as we are ramping up new automotive lines. And there's also a slight shift in the margins as the automotive market recovers, but it's still way better than the first half margins. Okay. I'll hand it back to Robert to discuss the rest of the slides. Thank you.

Thanks, Lau. So we -- again, we've changed this slide too to give you a better sense of our trends in our balance sheet. You can see from the top chart where our net debt position has decreased significantly from September last year from $212 million down to $124 million as we continue to improve the metrics on the balance sheet. So net debt at $124 million, down from December where it was $199 million. Our ratios continue to improve. Our current ratio is steady at 1.25. Our debt to total equity is now below 1 and net debt to total equity is very low at 0.4. And our book value per share has gone up as we've made profits. It's now at $0.12 a share, which is significantly higher than our current share price is at. And just on CapEx, again, we continue to control CapEx. We've spent $4.8 million year-to-date this year versus the full year last year at $9.9 million. We'll probably end up somewhere around the same number for 2025. So we're controlling CapEx, and we're focusing our cash on paying down debt. And we'll hand it over to Lou.

Thanks, Robert. Appreciate it. So key takeaways as a wrap up to what Brian and Robert and Lau have been talking about. The focus of the company is net income and EBITDA. We are continuing to see improvement on net income and EBITDA through the result of our actions that we put in place over the last 18 months. The gradual recovery of the European automotive market, selling through inventory and I think our focus on non-drivetrain related business and activities, things like lighting and things like sensors and cameras, lidar, radar, all of these things are things that are going to go in vehicle, whether it's an EV or a combustion engine. And so our focus has been to stay away from the drivetrain and look to participate in business that will be independent of drivetrain. And I think that's been working well for us with the new wins that we're closing, so that it doesn't expose us as much to the interests or incentives or growth of one drivetrain technology over another. Our focus on reducing our direct material spend has also been something that we have been working really hard on, and that is not just the reduction of spend, but also controlling the spend. In the past, IMI has been very happy to allow its customers to control the BOM and to manage the cost of the BOM. Now we have been very focused on trying to help our customers reduce their costs through our own sourcing efforts. So we've built up our sourcing team. This is an area where the company has made significant investments over the last 12 months. And I'm proud to say that our sourcing team is a world-class team today, centered in Asia. We're doing great work on finding alternative suppliers and components and materials for our customers and helping them to reduce the cost of their products. That's something because the BOM, I think you've heard me say it here before, is 70% of the cost of any product we build. It's extremely important for us to have the capability to be involved with our customers and to support our customers' efforts to drive those costs down. So we've been really focused on that. I think you can expect to see continuing improvement in our efforts in that area. There's a bit of a lag in that in that the work that we do now begins to affect our own cost and our customers' costs 6 to 12 months from now just because of the length of the supply chains that we deal with. The other thing is consolidation, footprint. We have been reducing footprint strategically in areas like China, where the geopolitical situation, the global geopolitical situation has affected exports from China. And much of our China business is local to local. But because there is business outside of us with other suppliers, when those other suppliers lose export business, then there are more and more companies, capacity equipment chasing less and less business. Puts a lot of pressure on margins, makes it really difficult to be successful in China. So we've consolidated our footprint there. We've gone from what was 4 sites down to 2 sites. I think we're really at the right combination now with one site in Southern China and one site in Northern China to support our global customers. Our business in China is really reflective of our business outside of China in terms of our customer base. And so this is really, really good for us. And the customers that we do have now there in China have differentiation when it comes to technology or IP or product performance. They don't compete on price. So that enables them to continue to win in China on a local-for-local basis. We completed the Czech sale this quarter, which really closed out our efforts to optimize the footprint. You never say you're all done, but I will tell you that our strategic plan that we put in place a year ago, as it relates to footprint and capacity by region, is now complete. I think the team did a great job executing on that plan because it was a difficult one, and it's never easy to reduce footprint or facilities because people are affected. But I think we did it in the most humane caring way that we could. And I think the overall company now is in a much, much better position as a result of it to compete. So we're now in a position where we have far fewer sites and we have larger sites. When we sold Czech, we pushed most of that business down to our Serbia and Bulgaria sites, makes them larger and better able to cover overhead. And of course, in China, we did the same. And in Asia, we did the same by reducing and eliminating additional rooftops that we deemed we just didn't need and that we can put those resources to work in lower cost, more centralized domains like the Philippines. So on the balance sheet side, you heard Robert talk about that. Our repayment of loans has been a focus, and we've been generating cash through improving the cash conversion cycle and also by reducing inventories. The industry went through a really difficult period over the last 2 or 3 years with long lead time electrical components and electrical suppliers who demanded no cancel, no change purchase orders. We're really now just working our way through the end of that. And I think the team has done a wonderful job managing that on a weekly basis. Disciplined CapEx spending. We, as a company, I think, had spent more money than we should have for a while. And so we are really being disciplined about where we spend money, and we try to spend money only on behalf of customers with true commitments from customers. And I think that discipline has worked really well for us. Sales is the last side of this. You've all seen our sales reducing over the last 12 to 18 months. That's been because we've created tighter focus on the types of business that we wanted to chase. And we wanted to make sure the business that we were going after was business that was sustainable and where we had a competitive differentiation that would last. Things like what we do in automotive lighting, we've got unique technology in that space, and we differentiate with it. Same thing goes for lidar, camera, radar. Our driver side monitoring business that we have built in the Philippines is now just coming to the fore for 2026. We're expecting really great results for that. Now that driver side monitoring has been legally required in places like Europe and the U.S., OEMs have no choice but to put it in. And we are a great non-China source for that technology. We've invested lots in people and equipment to enable our ability to compete in that space and stay tuned. I think you're going to see some really nice things from a revenue perspective in that regard next year. Robert also mentioned that the industrial side is an area where we have put additional focus to try to balance the business instead of being a 65-35 or 70-30 mix of business between automotive and industrial, we're trying to reach that 50-50 state. And our emphasis in industrial has been on things like data center and medical and IoT. And I'm proud to say that we are getting our -- now our second region, our second facility up for the medical ISO 13485 certification. So that's a big deal for us as we put renewed focus on that medical technology segment. Having the certifications is absolutely imperative. And our goal is to have global certifications for the medical ISO within the next 12 to 18 months. So stay tuned there. We've had lots of success on the data center side. We've pivoted to focus on that space. And a lot of that space can be high-mix, which is really good for our business. We're extremely competitive when it's a high-mix environment where there's many, many SKUs that are medium volume, where changeovers and the like become really important. And so we're really good at that, and we've focused on that, and we're winning with that. The addition of mechanical at our sites, you know that we have plastics molding in Mexico for North America and in Bulgaria for Europe. We're now happy to say that in January, we'll have plastics injection molding up and running in the Philippines. We also have machining up and running with a partner in the Philippines. So our campus becomes a full-service campus in and of itself so that we have trusted capability in-house to deliver for the customer when it comes to a full box build. And we also have control over the NPI when it comes to tooling. We're doing more of our own tooling and fixturing on the test side and automation side. So those investments, especially in people are ongoing to continue to differentiate our sales story. Lastly, the power module business. This was a business that we struggled with for a long period of time. We've gotten back to the basics in that business. And we are competing and winning in the areas that are being sold in high volumes today. These are discrete packages like the TO247 and 220 and EasyPACK. And so as a result of that focus that we changed 18 months ago, we're seeing the fruit of that effort, and our team is doing a great job in that regard. It's not -- the power module business is still nascent, especially for us. More and more customers are looking to operate outside China and our giving them the ability to do that in the Philippines is a really nice offering that they're taking, including Chinese customers. So we're doing, I think, a really good job there, and you're going to see more good things to come. So that's all I have. Brian, I'm going to pass it back to you.

Awesome. Thank you, Lou. At this point, we'll open the floor for any questions that the participants may have. Lou, this might be for you. Any thoughts on President Trump's 100% tariff threat on semicon and electronic chips inbound to the U.S.?

Yes. So the 100% tariff is not something that will affect us because we're -- this is on the power module side. We don't today -- there's so much business on the power module side from a packaging perspective that's in China that wants to or needs to -- and Taiwan, by the way -- that wants to and needs to exit that domain. That the business that will begin to grow in the U.S., and I believe it will begin to grow in the U.S. that business is so small now that if it doubles in size or triples in size, we'd never feel it. So there's just -- if 5% of the business is packaged in the U.S. today, and that goes to 10% or 15%, the business that we wouldn't get or wouldn't have exposure to would be small compared to the 35% or 40% of the business that gets packaged in China today that needs to leave China. So I think all in all, the geopolitical situation with tariff and other is working on -- working to benefit us, not hurt us.

Thank you, Lou. Okay. About new steering and lighting projects, could you give color on expected revenue ramp timeline and how much visibility exists for '26 to '27 volumes? I can take this. So yes, the steering application lighting projects, they're both long-time customers of IMI. So we -- these customers do give us a -- the way our business model works is that the customers give us a 5-year estimate -- 5- to 7-year estimate of how the business goes. And then we get updated constantly throughout this project lifetime. So we do have pretty good visibility on '26 and '27 volumes. Unfortunately, not something we disclose to the public. But as developments come, we will update the investor community on a quarter-to-quarter basis regarding that.

Maybe I'll just throw in, I think on the steering project, we expect to be at full production next year while we're still ramping this year. And we have some new lighting projects coming on stream next year as well to add to our lighting business.

Yes. Those 2 businesses are really strong for us. We're depending on good things in '26 from those 2 businesses.

So I'll take the next one. Is the weakening peso or foreign currency concerning? No, it's the exact opposite. We're a U.S. dollar-based company. So we really like the weakening peso because it lowers our cost base. So we're in a favorable environment at the moment with the weak peso. Any hint for quarter 4? Do you expect the same level of performance for third quarter? Again, not something that we are in a position to disclose at the moment. But the -- I think the evidence is in the overheads and in the SG&A. We have consistently lowered fixed overhead and SG&A without sacrificing profitability. So we can take our clues from there in that. There hasn't been any other big movements or any big transactions that might affect it. So we are very bullish on Q4. We can tell you that we are very positive. We like the trajectory we are on. And nothing on the horizon that might impede that at the moment. Next question, regarding your answer to [ Jano's ] question on the macro level, won't there be more competition since other companies will look for other clients, which will increase competition? This question is referring to our answer on Trump's tariff.

Yes, I'm not sure I really understand the question regarding your answer on a macro level. Because Jano's question was about the tariff threat on semicon electronic chips inbound to the U.S., so the 100% tariff. And so now I think you're asking on the macro level, won't there be more competition since other companies will look for other clients.

I'm guessing what he means here is the EMS companies that are affected by the tariff threats since they will lose those business streams. Won't they be -- won't they start competing in other markets that might overlap with us since they lose the U.S. business stream?

Yes. So this -- I thought that this was a tariff threat on semicon electronic chips. So if Jano's question and this question relate to EMS activities, so there -- I wouldn't be worried about EMS as it relates to semicon and chips, right? So because there are 2 different things, 2 different tariff classifications. So I firmly believe that the setting for the various tariff classifications is set, I guess, dependent of the Supreme Court decides to do this week. But then we're in a position where it's status quo. And so I would tell you that the big issue is going to be NAFTA or now the new USMCA that President Trump created back in his first term. So that is being renewed in February. And I believe there'll be some changes to that, but not big changes. I think the changes will be small. And so our business is -- I think our Mexico business is -- has the potential to really do well going forward as a result of these changes to the political tariff landscape, right? So I think in Asia, we're on par with the best classifications in terms of tariff with other Southeast Asian countries. In North America, we operate in Mexico. And in Europe, we operate in EU. So I would tell you that from a tariff perspective, we're in pretty good shape.

Lou, I think this is a good opportunity to share some knowledge here because in the Philippines, when the industry talks about electronics, the thinking automatically goes to semicon since that's what the Philippine electronics industry was in the past. IMI isn't really a semicon company. We're an electronics manufacturing services company. Maybe you can talk a bit more on that, just to share some knowledge and how we differentiate against a traditional Philippine semicon company.

Yes, great. I mean we're a box builder, right? We're a product builder. So we build products for companies, everything from locking mechanisms that have a particular tariff code to HVAC controllers that have a particular tariff code to, gosh, I mean, so many different kinds of products, sensors that are used to determine levels of CO2 and other elements in the air, fluid flow devices. So we build products that have electronics inside them, but also have metals and plastics. And so those ship out as a finished good under a tariff code for that particular category. So we're not really a company that's concerned about semicon and the like outside of really our power module business. We are concerned about overall trade and overall trade tariffs across the whole tariff spectrum, the whole, what you would call classification spectrum. So we're like any other contract manufacturer globally, we're worried about what are -- what is the overall tariff position that we have in our geographies versus where other EMS companies might have in theirs. So we're looking at what is an EMS company building products in Thailand or Malaysia or Vietnam have as their tariff versus our tariff in Philippines. And so they may be at 20%, and we're at 19%, but we're on par, so. Does that answer the question?

Yes. Definitely. Thank you, Lou.

Okay. I'll just say one more thing to that is that, this whole tariff situation, it's about competing, right? So if tariffs change, everybody has to deal with that, right? So for the most part, being inside China is right now a really difficult place to be. And so you don't really want to have a bunch of square footage inside China. And so we've taken care of that, right? When the facts present themselves, you must act on the facts. And you must act swiftly and decisively. You can't sit around and wring your hands and grit your teeth and worry and wonder, you need to act, kinetic energy. So we've done those things. We, as a management team, feel that we are -- we have the very best footprint a company in our position could have to compete globally. And now we're off doing that with a great and intense focus on the sales side, right? Because we spent kind of the middle of '24 when I joined through about the middle of '25 focused on the operation, focused on our capability to compete. We weren't really focused on growing during that period. We're focused on optimizing our operation such that when we brought additional customers and revenue on, we could support it and, in fact, deliver on it successfully and profitably. So now you see a pretty strong pivot towards the commercial side. I am personally very involved in that side now. And I think we're making good progress. So stay tuned for next year. And the beauty is we have lots of open capacity in our facilities. So through some of the productivity initiatives that we've run, whenever you can be more productive in a manufacturing environment, you free up capacity, which a lot of people focus on cost and those things, but I like to also focus on equipment -- plant and equipment and how it gets freed up when you're more productive, efficient, et cetera. So yes, we're excited. I see the AI question. I'll just say that AI is top of mind for me and for everyone at IMI. We are aware of and are implementing and using AI everywhere when it comes to supply chain and how we manage our purchasing and inventory of raw materials. When it comes to how we handle our sales processes and the way that we manage customers as it relates to challenging them with better products, better ideas, things like that and understanding their challenges and their threats and opportunities, boy, we are all over this. I won't get into all of the details. Production scheduling is another great example of software that we brought into the company, which has a fundamental focus on AI, machine learning, learning what's worked and hasn't worked. So yes, it's really important to our business.

Maybe, Lou, also I can throw out and you can probably supplement it better than I can. AI is driving the demand for data centers around the world. And so that's one of our sales focus areas is on the data center business.

Yes. And it's funny because it's been kind of like derivative, right? So big customers we have that make smart connectors that make smart dampers for HVAC that make some of the sensors for temperature control and humidity and things like this. We're the beneficiaries of their business getting stronger. So as we -- I won't say walk away from, but as we move out of businesses that weren't as good a fit for IMI, we're also entering into business that is a better fit for IMI, but also growing businesses. So that's exciting as well.

Awesome. Thank you. Next question, are you confident you will hit net income again in Q4? Again, not something we can answer definitively at the moment. But on an ex one-offs basis, because Q4 end of year can bring some one-off transactions that are hard to predict with certainty. So on an operating net income basis, ex one-offs, hard to see how we don't maintain that. We have $6.6 million of income -- core net income ex one-offs for Q2 and Q3. So hard to see us staying too far away from that. Next question is, does management expect to resume dividend payouts once leverage reaches a more comfortable level? Perhaps a better question for Robert.

Yes. Again, we don't want to talk too much about forward-looking. This is a decision that will be made by the Board of Directors, but it's conceivable that something like it could happen because we -- our debt -- we continue to drive our debt levels down. You'll see some nice progress on debt levels through Q4 as well. So we're going to end the year at a really nice number. You can make your own assumptions about what will happen next year, but it will be decided by the Board of Directors on any forward action as it relates to our capital structure.

What percent of revenue is coming from DC-related projects? How much do you see this number going up in the next 3 years? We're assuming that DC means data center.

Data center, yes.

Yes. So data center-related projects, we don't have as much now as we will have. How much do we see this number going up in the next 3 years is hard to determine because I would have -- I would not have expected the data center business to grow as quickly as it's grown. So what -- how does that growth trend go forward. So that's, I think, a big question that is yet unanswered. But I think one thing you can depend on is that our data center business and our medical business will be a higher percentage of our revenue in the next 3 years just because our focus and our concentration of customers and applications that we have and are winning are associated with those businesses. So when you have intention to go out and close business in specific segments, and you align the organization around that intention and set specific goals, then you can -- if you're good at what you do, and I think our team is extremely good at what we do. And again, I want to bring back that idea of high-mix because there's lots of EMS companies out there, lots of big ones like Foxconn and Pegatron and Jabil, Flex go down the list, that really -- they want high-volume applications, right? They don't really like to play around with the mix. And so a company like ours, when focused on performance, in a high-mix environment. And that ripples all the way through to supply chain and sourcing and how you handle production scheduling and how you handle yield and so many things when you're good at that, you can win. And so there are parts of the data center and medical and other businesses that are high-mix. And so we're intentionally focusing on those areas. And so you'll hopefully see us win there, and we'll see that business grow. And when you ask about future success, I always think you should -- at least what I do when I invest is I look at past success. So how has the company done over a period of time under a certain leadership and management team. And then you have to decide if you like what they've done in the past and do you have confidence that they'll continue to do it in the future.

Will you buy more shares at the current price? There is -- I think that's a personal question rather than a company question. I'll leave it up to you, Lou, if you want to answer that.

No, I'll just tell you that I think you've seen that I've been buying shares in the company since I started. And I'm -- when you see the management team buying shares, it means that they're confident in themselves and in the company. And so I think from my perspective, I'm very confident in myself and this team. So again, I can only speak to the past. I can't -- which is all disclosed and -- but I can't speak to the future. But I think you've seen that in the past, I've continued to buy shares as the share price has gone up. And so I'm a believer in this company. And so I -- it's all about putting your money behind that, right, your personal money behind that. So I don't -- I'll say that like when I invest in the stock market and other things, I do, do that, but I do it through third parties and people that I think have better knowledge than I do about the market. But, boy, when I have a chance to invest in myself, I'm going to do that. And when I have a chance to invest in people that I know, Robert's worked with me for a long time. Other people that have been brought into this company, I've worked with for a long time. The people that are working at IMI today and have been at IMI for a long time are people that I really respect and love working with. And so yes.

All I'll throw in two cents here, too, I'm also, as the public record shows, been a buyer of shares every month. When you see a company that's trading at such a substantial discount to book value, and yet we're putting out quarter-after-quarter -- 3 quarters in a row now of really solid earnings, it's a bit of a no-brainer. So we're hoping at some point, the market catches up with us, but we're confident in the performance of this company.

Yes. Again, thank you for taking the time to join us today. Thank you for the appreciation --

Thank you, everybody, for joining us and asking questions and being engaged. Sorry, Brian.

That's it. Yes. Looking forward to the next one. Thanks, everyone.

Bye-bye.

Bye.

Thanks, everyone. Bye-bye.