Cirtek profits surge in 3rd quarter

CIRTEK Holdings Philippines Corp. looks to deliver strong profit growth for 2018, after earnings doubled for the first nine months of the year.

In a regulatory filing, the listed technology firm reported a net income of $3.5 million in the third quarter of 2018, 208% higher year-on-year. This followed a 31% uptick in sales to $33.6 million on the back of robust growth across all business units.

Revenues from Quintel, the United States-based firm Cirtek acquired in 2017, contributed $16.9 million.

Its antenna manufacturing unit provided $10.4 million before consolidation. Excluding inter-company sales during consolidation, Cirtek said revenues to external customers reached $1.9 million. Meanwhile, the semiconductor business generated $14.9 million.

On a nine-month basis, Cirtek’s net income grew by 99% to $11.1 million, on the back of a 30% sales growth to $88.5 million. The company’s acquisition of Quintel proved beneficial to its topline, as it accounted for bulk of revenues at $47.5 million.

The company targets to grow Quintel into a $500-million revenue firm in the next three to five years, at the same time aiming to be listed at the Nasdaq stock market.

Gross profit margins meanwhile improved to 29%, versus 19% in the same period a year ago.

“We expect the Group’s growth momentum to continue for the rest of the year and into 2019,” Cirtek President Roberto Juanchito T. Dispo said in a statement issued Wednesday.

“Strong demand from existing customers, new customer wins, and strategic collaboration with selected wireless product companies resulting in quicker product time to market, will all come into play and enable the Company to capture new business opportunities and further drive shareholder value.”

Cirtek said it will continue to invest in high-growth spaces, while also optimizing its research and development capabilities.

Aside from Quintel, the company also acquired a 49% stake in local e-commerce firm MultiPay for P100 million last year. MultiPay provides payment platforms and solutions to companies like Bayad Center, EasyPay, and DragonPay.

Cirtek earlier said it will spend up to $8 million for capital expenditures this year, most of which will be spent to expand its capacity.

Shares in Cirtek gained 0.82% or 30 centavos to close at P36.70 each at the Philippine Stock Exchange on Wednesday. —