Cirtek plans more overseas acquisitions

MANILA, Philippines — Cirtek Holdings Philippines Corp., the listed electronics company, plans to acquire one to two more companies overseas over the next six to eight months as part of its vision to become a major global player.

“We are on track to profitability in 2018 and we are looking around for two more acquisitions. All these will catapult Cirtek into a billion-dollar company in five years,” Cirtek vice chairman and group president Roberto Juanchito Dispo said in a briefing on Friday.

Dispo said they are looking at a company from the United Kingdom and China for the planned acquisitions.

The prospective acquisitions would complement the company’s business operations and expand the market in Asia, added Cirtek chief finance officer Anthony Buyawe.

To finance the acquisition, Cirtek plans to conduct a follow-on offering.

Last week, the company reported strong results with consolidated revenue of $54.8 million and net income after tax (NIAT) of $7.5 million in the first half.

Consolidated revenue during the period grew 30 percent year-on-year wile NIAT grew by 60 percent year-on-year.

The revenue contribution from its newly acquired Quintel for the six-month period ending June 30, 2018 amounted to $30.7 million.

Similarly, revenues from the RF/MW/mmW and antenna manufacturing business before consolidation for the six months ending June 2018 amounted to $29.4 million, a 42 percent increase compared to the $20.7 million for same period in 2017.

On the other hand, revenues from the semiconductor business amounted to $20.5 million compared to $21.5 million for the same period in 2017, a five percent decrease. Profit after tax amounted to $884,000 compared with $754,000 for the same period in 2017, a 17 percent increase.

Cirtek Holdings is the holding company of Cirtek Electronics Corp. and Cirtek Electronics International.

Through its subsidiaries, the company is primarily engaged in three major activities including design, production and delivery of state of the art base station antenna systems for wireless communication; complete manufacturing solutions for value-added, highly integrated radio frequency, microwave and millimeter wave technology products; and provide full service/turnkey solutions including wafer probing, wafer back grinding, assembly, packaging and final testing of semiconductor devices.