Cirtek Holdings sees 8%-10% growth in 2014

Cirtek Holdings Philippines Corporation, a publicly-listed independent semiconductor assembly and test company, expects its core business to grow 8 to 10 percent this year after announcing a 7 percent improvement in 2013 profits.

In a disclosure to the Philippine Stock Exchange, the firm said its net income after tax amounted to US$4.7 million in 2013, up by seven percent from US$4.4 million in 2012.

Consolidated revenue rose 8 percent to US$44 million last year, compared with the US$40.6 million reported in 2012.

Gross margin remained steady at 13 percent in 2013, as the company carried out comprehensive cost reduction measures to cope with the rise in raw material prices, power rates and wages.

Cirtek said its revenues were boosted by the successful introduction of new high-performance multichip packages used in high-power signal amplifiers for broadcast, telecom base stations, microwave and satellite communications.

The firm also added to its collection of customer awards as it received a citation for outstanding new supplier performance by a customer who is a major player in the aerospace industry.

Cirtek noted that preliminary data indicates that, in 2013, worldwide semiconductor revenues grew by five percent to US$315 billion from US$300 billion in the previous year (Gartner report).

While recovery in the US and Europe has been sluggish, consumer confidence has improved, driving the sales of consumer electronic products (tablets, mobile phones, home entertainment) and automotive components.

For 2014, analysts forecast the semiconductor industry to grow between four percent and eight percent. Tablets and smart phones will continue 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 said that, revenue from accretive business i.e. new products, new projects and potential acquisitions, will contribute an additional five to eight percent of additional revenue in 2014.

The new opportunities include a joint venture with a major Japanese company for the production of LED back-lighting to be used in consumer electronic devices.