Cirtek’s profit up 44%

LAGUNA-based electronics manufacturer Cirtek Holdings Philippines Corp. grew its net profit in the first nine months by 44 percent year-on-year to $8.2 million as the company sold more high-margin products for the period.

For the third quarter alone, net profit expanded by 36 percent year-on-year to $4.9 million, the company said in a press statement on Tuesday.

Nine-month revenues grew by 23 percent year-on-year growth to $45.5 million. For the third quarter alone, revenues rose by 21 percent year-on-year to $17.1 million.

The growth for the nine-month period was attributed to sustained sales growth registered by both semiconductor and radio frequency, microwave and millimeterwave businesses.

For the third quarter, gross margin stood at 25 percent, mainly attributed to the increased percentage of high-margin products sold during the period as well as to continuing cost reduction
programs.

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

“Our legacy business (semiconductor) and wireless broadband unit grew at a combined rate of
21 percent in terms of revenue. We delivered another solid quarter, putting us on pace to achieve our revenue and profit targets for 2015,” said Jerry Liu, chair and president of Cirtek, which trades on the Philippine Stock Exchange under the ticker TECH.

“We expect to sustain our strong performance for the rest of the year. We will continue to work
with our customers to deliver high-value products and services to the market, and enhance our
market position in fast growing spaces such as wireless communication and automotive,” said
Cirtek chief finance officer Anthony Buyawe.