Cirtek revenues rise

MANILA, Philippines - Laguna-based semiconductor firm Cirtek Holdings Philippines Corp. said its earnings and revenues rose in the first quarter as it delivered more services to its existing customers while the semiconductor business recovered.

The company’s  profits jumped 19 percent to $960,000 while consolidated revenues gained almost nine percent to $10.1 million, said Cirtek chief finance officer Anthony Buyawe.

He said the growth was driven by a combination of customer- and application-specific packages, and standard packages, with the uptick coming exclusively from its current business portfolio.

“Consistent with our profit guidance at the start of the year, the company expects a 10-12 percent growth from its current business,” the company official said.

“Sales and profit contribution from acquisition and major supply agreements will come on stream at the end of the second quarter or early third quarter,” he added.

The semiconductor industry expects a growth of 4.5 percent to eight percent this year.

In terms of industry segment, double-digit growth is seen to come from the wireless communication segment amid strong demand for smartphones and tablets.

Other market segments that will see modest growth include automotive, industrial and consumer electronics, Buyawe said.

“These market trends validate Cirtek’s strategy to focus on high-growth industries and end-applications, such as wireless, smartphones and tablets, electronic IDs, automotive and LED,” he said.

For 2013, the company forecasts its sales to grow at least 25 percent, of which 10 percentage points will come from its existing business and 15 percentage points driven by joint ventures and acquisitions.

This year, Cirtek will focus on several key activities like revenue growth of organic business through expanded base of customers and new products; focus on high value products; continuous re-engineering and research and development; and acquisitions and launch major projects.