Firm eyes deal on internet over power lines
Laguna-based electronics manufacturer Cirtek Holdings Philippines Corp. is in talks with National Grid Corporation of the Philippines (NGCP) on a potential partnership that could transform the country’s electricity superhighway into a mobile backbone.
In a recent interview, Cirtek president Roberto Juanchito Dispo said the company has started discussions with NGCP and the Department of Energy on how existing transmission assets could be harnessed into a telecommunication infrastructure.
NGCP is a privately owned corporation that operates, maintains and develops the country’s state-owned power grid, an interconnected system that transmits electricity from where it is produced to where it is needed.
The government, which still owns the assets operated by NGCP, is also interested in such a potential arrangement.
“Energy Secretary (Alfonso) Cusi is interested because it will utilize the value of their transmission towers,” Dispo said.
Dispo noted that recently, Cirtek flew in its UK-based chief technology officer to present to DOE a technology wherein powerful fiber could be built into electric transmission towers. He said this technology would have the potential to deliver broadband over powerlines even to remote areas in Visayas and Mindanao.
“But NGCP will still have to amend its charter to get into that kind of business,” Dispo said.
Cirtek expects to breach the $100-million revenue mark and chalk up a net profit of at least $14 million this full year, buoyed by the turnaround into profitability of newly acquired antenna solutions provider Quintel.
In the first semester, Cirtek grew its net profit by 60 percent year-on-year to $7.5 million while consolidated revenue rose by 30 percent to $54.8 million.
Cirtek chief financial officer Anthony Buyawe said in an investors’ briefing on Friday that the guidance for the third quarter would be to hit consolidated sales of $26 million to $38 million, supported by a strong sales pipeline, cost rationalization and launch of new products for volume release and field trials. Buyawe said consolidated revenues would likely reach at least $100 million for the full year, suggesting an increase of around 12 percent from the level last year.
For net profit, Buyawe said “it’s nice to annualize it if we can hit $14 million. If that’s the guidance, we can adjust after the third quarter,” adding that margins were expected to improve in the second half of the year.
