Cirtek profit up 44% in 9 months

MANILA, Philippines - Cirtek Holdings Philippines Corp. reported a net income of $8.2 million in the nine months to September, up 44 percent from the $5.7 million recorded a year ago.

In a disclosure to the Philippine Stock Exchange (PSE), Cirtek said revenues increased by 23 percent to $45.5 million, driven by sustained sales of its semiconductor and the RF/microwave/millimeterwave businesses.

Cirtek CFO Anthony Buyawe said the company would likely sustain its positive performance for the remainder of the year.

“We expect to sustain our strong performance for the rest of the year. We will continue to work with our customers to deliver high-value products and services to the market and enhance our market position in fast growing spaces such as wireless communication and automative,” he said.

In the third quarter alone, Cirtek reported a 36 percent growth in net profit to   $4.9 million as consolidated revenue expanded by 21 percent to $17.1 million.

The improvement was mainly due to the increased percentage of high-margin products sold during the period, and to the company’s continuing cost reduction programs as it continues to focus on improving assembly and packaging capabilities, operational efficiency, and reduction of unit manufacturing cost.

Subsidiary Cirtek Advanced Technologies and Solutions (CirtekATS), in charge of the RF/Microwave/Millimeterwave business, recently bagged two major projects – a contract from Sivers IMA of Sweden as manufacturer of E- and V-Band converters as well as a multi-year manufacturing contract with Quintel, a US-based global manufacturer of advanced antennas.

The contract is estimated to be worth between $10 to $20 million for the first 12 months, with the potential to double within the next two to three years.

Commercial operations for both projects are expected to commence in the first quarter of 2016.

“Our legacy business (semiconductor) and wireless broadband unit grew at a combined rate of 21 percent in terms of revenue. We delivered another solid quarter, putting us on pace to achieve our revenue and profit targets for 2015,” Cirtek chairman and president Jerry Liu said.

Moving forward, Cirtek is optimistic about the growth of the global semiconductor industry.

The global semiconductor industry is forecast to grow between three and five percent in 2016.

“Consistent with our strategy to leverage off our in-house technology capabilities, we will be setting up a new subsidiary that will provide both connectivity and content,” Liu said.

The new business of the company would be engaged in providing infrastructure solutions to enterprise networks by integrating various wireless and wired connectivity options.

It would also offer indoor and outdoor communications network design, installation and commissioning services using appropriate enterprise solutions that are tested and proven.