Cirtek net income jumps 45% to $6.8M


Laguna-based semiconductor maker Cirtek Holdings Philippines Corp. said its net income after tax last year surged 45 percent from the previous year on the back of strong demand for its RF (radio frequency), microwave and millimeter wave–based products.

In a statement, the company said its net income rose to $6.8 million (P330.85 million) from $4.7 million in 2013, as revenues grew 18 percent to $52 million from $4.7 million.

The increase in earnings was attributed to the company’s strong RF, microwave and millimeter wave operations, acquired by Cirtek in July last year through the Remec acquisition.

Cirtek’s offshore unit, Cirtek Electronics International Corp. (CEIC), had earlier acquired Remec Broadband Wireless International Inc. for $12 million to expand the company’s product portfolio, particularly bringing in RF, microwave and millimeter wave operations into the company.

The Remec unit has since been renamed as Cirtek Advanced Technology and Solutions Inc. (CATS), continuing to produce and ship microwave radio system products to over 30 clients globally.

“Year on year, Cirtek continues to register record growth in both top-line and bottom-line. We expect to sustain, and accelerate, this growth track by continuing to deliver value to our customers in terms of quality, cycle time, process technology and price points, and focusing on growth markets and key industry trends,” said Jerry Liu, Cirtek chairman and chief executive officer.

Cirtek said it launched new packages last year including plastic power hybrid packages for industrial and transport applications; high power quad/dual flat leadless using GaN (gallium nitride) power amplifier for cellular infrastructure, two-way communication and CATV amplifier; as well as the QFN/DFN (QFN (quad-flat no-leads and dual-flat no-leads) packages for high-voltage protection devices.

For this year, expected growth in the semiconductor industry is seen at 4 percent to 7 percent on the fast growth of tablets, smartphones and ultramobiles.

Automotive and other segments are also targeting high growth on increasing content of electronic devices in vehicles, emerging hybrid and electronic car models, and the advancements in LED lighting, medical, military or aerospace and power supply applications.

Cirtek began operations in 1984 and was incorporated in 2011. It is involved in providing service solutions for subcontract semiconductor manufacturers and has three subsidiaries: Cirtek Electronics Corp., CATS and offshore unit CEIC.


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