Cirtek sees core business growing10% in 2014

MANILA, Philippines - Cirtek Holdings Philippines Corp., a publicly-listed semiconductor assembly and test company, is projecting its core business to grow by eight to 10 percent in 2014 on the back of stronger consumer confidence in the semiconductor industry.

The 2014 growth forecast is also supported by the expected positive performance of the global semiconductor industry.

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 its 2014 revenues will come from accretive business like new products, new projects and potential acquisitions, which will contribute an additional five to eight percent in additional revenues in this year. 

Among the new opportunities is an 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. 

The package will be used in binoculars, cameras, night vision optics, laser ranger finders, antenna positioning, and other industrial compassing applications.

Other opportunities include anti-electrostatic discharge package placed in cell phones, smart phones, computers, and other consumer devices. 

This optimism was also boosted by its positive performance in 2013.

For 2013, Cirtek reported a seven percent increase in its net income  after tax to $4.7 million from $4.4 million in 2012.

Cirtek’s consolidated revenue in 2013 amounting to $44 million, eight percent more than compared the $40.6 million registered in 2012.

Gross margin remained steady at 13 percent in 210, as the Company carried out comprehensive cost reduction measures to cope with the rise in raw material prices, power rates and wages.

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.

Preliminary data indicates 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.

Cirtek is an independent complete solution provider for subcontract manufacturing of semiconductor devices with 29 years of experience in the assembly and testing segment.

It provides turnkey solutions that include package design and development, wafer probing, wafer back grinding, assembly and packaging, final testing of semiconductor devices, and delivery and shipment to its customers’ end users.