Cirtek profit up 12 pct in first half

ABS-CBN News

Posted at Aug 28 2013 04:21 PM | Updated as of Aug 29 2013 01:46 AM

MANILA, Philippines - Semiconductor assembly and test company Cirtek Holdings Philippines reported a net income after tax of $2 million in the first half of 2013, 12% higher than the $1.8 million it posted a year ago.

Cirtek said it recorded 11% higher consolidated revenue of $21.4 million in the January to June period from $19.3 million a year ago.

The company said gross margin was steady at 13% in the first half despite cost pressures, as it implemented cost reduction programs.

Cirtek said sales to its top 10 customers jumped 18% in the first half. At least 40% of its output for the period went to communication, 20% to computing, 20% to consumer electronics, 10% to industrial and 10% to automotive.

The global semiconductor industry is forecast to grow between 4.5-8% in 2013, to be driven largely by wireless applications, automotive industrial and consumer electronics. However, this growth may be affected by macro and market conditions.

"The company remains confident it can sustain its growth momentum and continue to outperform the industry. Cirtek’s core business is forecast to grow by 10% in Q3. Meanwhile, revenue from accretive business i.e. new projects and potential acquisitions, will contribute between 2% to 5% growth in Q3," Cirtek said.

For the rest of the year, Cirtek said it will maintain strict cost control programs and minimize its capital expenditure.