Cirtek Revenue at $48.6M for First Half 2019

CIRTEK HOLDINGS PHILIPPINES, CORP. (PSE: TECH) on Monday announced its results for the three months and six months ending June 30, 2019.

Performance Highlights

Q2 2019

  • Consolidated revenue of $27.6 million
  • Net income after tax (NIAT) of $2.3 million
  • Consolidated revenue in Q2 2019 increase by 31% QoQ, decline by 5% YoY, NIAT increase by 8,126% QoQ, and decline by 60% YoY.
  • Gross margin in Q2 2019 was 26%, compared to 18% during Q1 2019, a 45% increase, compared to 27% during the same period last year, 3.8% decrease.

Six Months (Jan-June) 2019

  • Consolidated revenue of $48.6 million and NIAT of $2.3 million, 11% and 70% decrease over the same period in the previous year.
  • Gross margin of 22%, six percent lower than the 28% for the same period in the previous year.
  • Revenue contribution from CEC(semiconductor business) was $20.6 million. Revenue contribution from CATSI (RF/MW/mmW and antenna manufacturing business) amounted to $11 million. Quintel(developer of advanced wireless antenna solutions) posted revenue of $17 million.

Jorge Aguilar, TECH President said: “The global economic slowdown and unique industry challenges have negatively affected demand for electronic and communication devices. As a result, revenue and profitability for the first half of the year have been lower than expected.”

“Despite the challenges, we will continue to aggressively pursue new customers and new markets, continue strategic collaboration with third parties for quicker time to market and broader product offerings to major customers, and continue to driver efficiency across the organization,” Mr. Aguilar said.

“Cirtek’s manufacturing business has lined up several captive customers to drive expansion in 2020,” Mr. Aguilar said.

“The Company remains well positioned for future growth,” said Cirtek Chairman Jerry Liu. “We are particularly excited at Quintel’s new generation of wireless base station antennas. Apart from offering superior quality, which is a given, these new families of antennas: (1) provide advance features and enhancements that other vendors do not currently offer, (2) address current and potential customers’ specific requirements such as rooftop optimized antennas and SONWav antennas that are deployed in sites with restrictions, (3) provide enhanced coverage through optimized array and independent tilt, (4) support 5G rollout with unique high performance, low cost platform and small cell products.”

“Through its strong new products pipeline, Quintel will double its product portfolio within one year, and should create new markets and new customers,” Mr. Liu said.

“Key acquisitions in 2014 (the former REMEC) and 2017 (Quintel) have upgraded Cirtek’s capability to system-level manufacturing, brought into the Company’s fold valuable IP, design and development capabilities, and enabled Cirtek to sell its own branded products globally,” Mr. Liu added.

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