Cirtek projecting 8-10% growth in ’14

Laguna-based electronics manufacturer Cirtek Holdings Philippines Corp. expects core business to grow between 8 and 10 percent this year as new products, projects and potential acquisitions are seen boosting growth prospects.

Cirtek grew its net profit last year by 7 percent to $4.7 million as revenue expanded by 8 percent to $44 million on the back of steady margins.

Gross margin was at 13 percent for 2013 which the company attributed to comprehensive cost reduction measures to cope with the rise in raw material prices, power rates and wages.

Cirtek also introduced new high-performance multichip packages used in high-power signal amplifiers for broadcast, telecom base stations, microwave and satellite communications.

The company also received citation last year as an “outstanding new supplier” from a customer which is a major player in the aerospace industry.

On a global backdrop, worldwide semiconductor revenue grew by five percent to $315 billion, based on preliminary data for 2013. While recovery in the US and Europe was sluggish, consumer confidence has improved, driving the sales of consumer electronic products (such as tablets, mobile phones, home entertainment) and automotive, the company said.

For 2014, the semiconductor industry is seen to grow between 4 percent and 8 percent, based on analysts forecasts. Tablets and smart phones are seen continuing to be the key consumer items that will drive growth. In terms of geographic markets, China is expected to increase in importance as a major end market for electronics products.

Cirtek, for its part, expects new products, new projects and potential acquisitions to contribute an additional five to eight percent of additional revenue in 2014. Doris C. Dumlao