Cirtek profit up 4% to P77M in H1

MANILA, Philippines—Laguna-based semiconductor manufacturer Cirtek Holdings Philippines Corp. posted a 4 percent year-on-year growth in first-semester net profits to P76.68 million ($1.8 million) despite a challenging global environment.

Consolidated sales for the first half of 2012 reached P236.618 million ($19.3 million), 5 percent higher than the level posted a year ago.

In a press statement, Cirtek said the first six months of 2012 was “challenging” for the global semiconductor industry given the European debt crisis, sluggish US economy and growth slowdown in China affecting demand for electronic products using semiconductor device.

But the company said semiconductor demand for the second half was likely to be “much stronger, as the industry appears to have embarked on its next growth cycle.”

Cirtek said that growth in the first semester was driven mainly by customer- and application-specific packages, the company’s core expertise. At least 65 percent of Cirtek’s output was attributed to customer-specific packages.

The company also sees growth in the semiconductor industry to be driven by wireless communication, automotive, industrial electronics and LED applications.

Cirtek’s major customers include companies who support major players in the wireless and automotive industries.

Cirtek also recently forged a partnership with Light Engine, a US-based company specializing in LED design and an industry leader in application-specific primary optics.

The company said it was expecting a “strong” second-half performance in 2012. It also expects to conclude two major projects that it said would “contribute significantly” to topline revenue and profits this third quarter of 2012. Cirtek said it will make the announcements at the appropriate time.