Cirtek Holdings Post 9% Sales Growth in Q1

Laguna—(PHStocks)—Cirtek Holdings Philippines Corp. posted a 9 percent growth in net sales for the three months ending March 31, 2013, compared to the same period in 2012.

Consolidated revenue for the three months ending March 31 2013 reached US$10.1 million, compared to US$9.3 in the same period last year.

In a press statement, Cirtek said the growth was driven by a combination of customer and application-specific packages, and standard packages. Cirtek said that the growth for Q1 came exclusively from its current business portfolio.

“Consistent with our profit guidance at the start of the year, the Company expects 10-12% growth from its current business. Sales and profit contribution from acquisition and major supply agreements will come on stream at the end of Q2 or early Q3,” Cirtek said.

According to Cirtek, the outlook for the global semiconductor industry in 2013 is positive, with growth forecast ranging from a low of 4.5% to a high of 8%.

In terms of industry segment, double digit growth is expected to come from the wireless communication segment, boosted by continuing strong demand for smartphones and tablets. The number of smartphones and tablets purchased is expected to jump from 821 million in 2012 to 1.2 billion in 2013, as more of these devices invade workplaces around the globe.

Other market segment that will see modest growth include Automotive, Industrial and Consumer Electronics (CE). Growth in the automotive industry will be perpetuated by increasingly sophisticated information, entertainment and mobile communication features, and increased vehicle safety and efficiency. Meanwhile, the traditional CE market will be driven by demand for home entertainment devices such as HDTV, set-top-boxes, and home audio.

“These market trends validate Cirtek’s strategy to focus on high-growth industries and end-applications, such as wireless, smart phones and tablets, electronic IDs, automotive and LED,” Cirtek said.

Cirtek said that the company is continuously improving its manufacturing and materials engineering capabilities to stay ahead of the curve.

“Cirtek is committed to innovation and re-engineering in order to be able to provide effective, cost-efficient and comprehensive solutions to our customers,” Cirtek said.

For 2013, the Company forecasts its top-line to grow by at least 25%. 10% of the growth is expected to come from its existing business, with 15% to be accounted for by joint ventures and acquisitions.

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