Semiconductor maker Cirtek reports Q1 profit up 9%

Laguna-based semiconductor maker Cirtek Holdings Philippines grew its first quarter profit by 9  percent, mainly driven by growth in its current business portfolio.

Cirtek told the Philippine Stock Exchange on Wednesday that consolidated revenues rose to $10.1 million from $9.3 million.

“Consistent with our profit guidance at the start of the year,the company expects 10 to 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 Q2 or early Q3,” Cirtek noted.

It remains bullish on the prospects of the global semiconductor industry with growth forecast ranging from 4.5 percent to 8 percent.

In terms of industry segment, double digit growth is seen coming from wireless communications, boosted by continuing strong demand for smartphones and tablets. Sales of smartphones and tablets are  expected to jump to 1.2 billion units this year from 821 million in 2012—boosted demand in workplaces around the globe.

Other segments in which modest growth is expected include automotive, industrial and consumer electronics. Growth in the automotive industry will be perpetuated by increasingly sophisticated information, entertainment and mobile communication features, and increased vehicle safety and efficiency.

The traditional consumer electronic market will ride on demand for home entertainment devices such as HDTV, set-top-boxes, and home audio.

This year, the company sees its top line rising by at least 25 percent, with 10 percent of the growth coming from existing business and 15 percent from joint ventures and acquisitions. — VS, GMA News