Cirtek net income rose 7% last year

Cirtek Holdings Philippines Corp., a Laguna-based independent semiconductor assembly and test company, posted net income after tax in 2013 amounting to $4.7 million, up by seven percent from $4.4 million in 2012.
Cirtek also reported consolidated revenue in 2013 amounting to $44 million, up eight percent compared with $40.6 million in 2012.
“Gross margin remained steady at 13 percent in 2010, as the company carried out comprehensive cost reduction measures to cope with the rise in raw material prices, power rates and wages,” the company said.
Cirtek attributed the company’s strong performance to 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 company 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 also forecast its core business to grow between eight to 10 percent this year due to stronger consumer confidence in the semiconductor industry.
Preliminary data indicate that in 2013, worldwide semiconductor revenue grew by five percent to $315 billion from $300 billion in the previous year, according to the 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.
For 2014, analysts expects the semiconductor industry to grow between four to 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 its 2014 revenues will come from accretive business i.e. new products, new projects and potential acquisitions, which will contribute an additional five to eight percent of additional revenue  this year.
The new opportunities include its impending joint venture with a major Japanese company for the production of LED back-lighting to be used in consumer electronic devices and high reliability module assembly combining several technologies (sensor elements, processing electronics, and firmware) into one package.