Cirtek H1 profit jumps by 45%

Laguna-based electronics manufacturer Cirtek Holdings Philippines Corp. grew its first semester net profit by 45 percent year-on-year to $3 million as it shipped out more products and improved operating margins.

Consolidated revenue rose by 24 percent year-on-year to $28.3 million, buoyed by sales from the RF (radio frequency)/microwave/millimeter wave business, Cirtek said in a statement.

Applications for the millimeterwave technology include last-mile deployment for wireless communication, government security, medical technology, commercial space programs alongside satellite communication products for military and commercial applications.

Millimeter wave wireless technology presents the potential to offer bandwidth delivery comparable to that of fiber optics, but without the financial and logistic challenges of deploying fiber.

Gross margin ended at 19 percent in the first semester, two percentage points higher than the 17 percent a year ago. The improvement was attributed to the increase in the sale of high-margin products and the continuing cost reduction programs.

Manufacturing activities continued to focus on improving assembly and packaging capabilities, operational efficiency and reduction of unit manufacturing cost, the company said.