Chipmaker to declare 20 percent stock

SHAREHOLDERS of listed electronics firm Cirtek Holdings Philippines Corp. has approved a 20-percent stock dividend to stockholders of record as of December 21 2012, to be paid and distributed on January 10, 2013.

In a statement, Cirtek said stock dividends are computed based on number of issued and outstanding shares thus when computed the cash dividend to shareholders amounted to P38,919,120 which will be deducted from the company’s retained earnings. Meanwhile, Cirtek is bullish of growth prospects next year. Cirtek expects to outperform the industry once again.

“The company is expected to outperform the industry in terms of percentage sales growth; this statement is based on the company’s track record of consistently outperforming the industry and forecast provided by Cirtek’s key customers,” the company said.

Cirtek said that on top of growth that will come from existing customers and existing packages, an additional $ 3 million will come from a combination of new packages and new customers.

“The $3 million represents preliminary assessment of the value of new business for 2013 i.e. new products/packages and new customers. This is in addition to the growth expected from the current business i.e. existing customers and existing products/packages of Cirtek,” it said.

Cirtek said this new business will come from technology intended for mobile phones applications, gadgets and accessories, telecommunications, networking as well customer specific application devices.

Cirtek also recently entered into joint venture agreement with Sony LSI Design Inc. for the sales and manufacturing of test boards. The company is working closely with Sony LSI during the initial stages of the business.

“We are optimistic that the tie up with Sony will make a significant contribution to the company’s operating performance beginning 2013,” the company said.

In addition, the company is in the final stages of concluding a major contract with a global semiconductor company based in the US. The project involves consolidating several of the US company’s outsourced operations in the Southeast Asia region and transferring them to Cirtek.

In turn, Cirtek will set up dedicated assembly lines for the large volumes required by the project.