Cirtek aims for 10% growth in Q1 profit, sales

MANILA, Philippines–Laguna-based based semiconductor manufacturer Cirtek Holdings Philippines Corp. sees first quarter net profit and sales revenues rising by 10 percent year-on-year just on the strength of its existing business portfolio.

But as sales and profit contribution from acquisition and new business deals pour in after the first quarter, Cirtek said it remained on track to attain a faster growth of 25-percent growth for both revenues and net profits for the whole of 2013.

In a disclosure to the Philippine Stock Exchange on Monday, Cirtek said net income after tax for the first quarter of 2013 would likely reach $900,000 on the back of $10 million in sales for the period.

“Consistent with our profit guidance at the start of the year, the company expects 10-12 percent growth from its current business. Sales and profit contribution from acquisition and major supply agreements will come on stream at the end of second quarter or early third quarter,” Cirtek said.

The company’s targets for 2013 are seen supported by the following trends:

• Global semiconductor industry may grow by 4.5 percent to 8.5 percent to $303-$313 billion compared to 2012 levels;
• In terms of market application, demand will likely come from wireless application, computer peripherals, LED and consumer electronics;
• By product category, spending will go towards handsets/smart phones, tablets, and wireless infrastructure.

As such, Cirtek said it would focus this year on several key activities that are critical to achieving full-year targets.  For instance, it said organic business would be driven by expanding the base of customers and new products, continuing re-engineering and research and development, improving efficiency and capability of manufacturing processes, developing new package solutions and test services and strengthening sales and marketing.

Cirtek added that it would grow through acquisitions and launch major projects this year.

During the company’s special meeting of shareholders on March 1, likewise approved was the declaration of 20-percent stock dividends to shareholders.