Semicon firm Cirtek profit grew by 42% to $3M H1

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LAGUNA-BASED semiconductor firm Cirtek has booked $3 million profits in the first half of 2015, which is 42 percent higher than the $2.1 million figures a year ago.

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The company stated that the rise is due in part of the increased percentage of high margin products sold for the period together with their continuous cost reduction programs.

Consolidated sales, on the other hand, also grew by 24 percent from $22.8 million to $28.3 million the year earlier, as revenues were strong from the radio frequency (RF) semiconductors, microwave and millimeterwave devices.

Cirtek said half of its production output was in the communication segment, while the rest are related to consumer electronics (20 percent), computing (10 percent), industrial (10 percent) and automotive (10 percent).

For the whole of 2015, the company views that the global semiconductor industry will grow between 5 percent and 8 percent on the fast growth of iPhones android phones, tablets, PCs and TVs, as well as automotives.

The global millimeter wave technology market is projected to grow by 45.09 percent in terms of compounded annual growth rate, having a total market of $12 billion by 2020. Demand for wireless data traffic and need for wider network coverage will require communication firms to make significant investments in this segment.

The company aims to expand its business by developing its own products and brands, and by becoming a complex open equipment manufacturer (OEM) that sells finished products, aside from its present operations of open-source-appropriate technology (OSAT) where Cirtek’s designs can be used, modified, and distributed freely.

From a follow on offering conducted sometime this year, Cirtek is keen on levying about P2 billion investments. The funds from the share sale will finance its planned acquisitions of small to medium-sized semiconductor manufacturers to boost the company.

Cirtek, which began operations in 1984 and incorporated in 2011, is involved in providing service solutions for subcontract semiconductor manufacturers, and has three subsidiaries: Cirtek Electronics Corp., Cirtek Advanced Technology and Solutions Inc. and offshore unit Cirtek Electronics International Corp.

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