Cirtek bags more contracts from global companies
CIRTEK Holdings Philippines Corp. has bagged more contracts from three global semiconductor firms, which could provide at least $2.5 million in additional revenues a year.
In a statement released late Wednesday, the listed company disclosed its wholly owned semiconductor assembly and test subsidiary Cirtek Electronics Corp. (CEC) signed supply agreements with Bourns, Inc., along with two of the 10 biggest semiconductor integrate device manufacturers.
CEC will manufacture over molded package power transient voltage suppressor (PTVS) and transient blocking unit (TBU) products, which serve as surge protection devices for industrial and automotive battery management protection.
Under the contract, Bourns will supply the manufacturing equipment while CEC will provide a dedicated space and personnel for the production of PTVS and TBU devices.
“We continue to expand our partnership with Cirtek as we consolidate operations and continue to grow our semiconductor business,” Craig Shipley, vice-president and general manager of the communications division at Bourns, was quoted as saying in the statement.
Cirtek has worked with Bourns for more than 10 years now, the former’s President Jerry Liu noted in the statement.
Aside from Bourns, the Laguna-based manufacturer of semiconductor devices and complex radio frequency, microwave and millimeter wave products secured contracts with two of the 10 largest global semiconductor IDMs.
Cirtek will manufacture microelectromechanical systems (MEMS) and protection devices for commercial applications for the unnamed clients. The deal is estimated to generate $2.5 million of additional revenues for CEC.
The production of the MEMS will begin within the second quarter, according to Cirtek, which projected $1.5 million in annual sales of such products.
For the protection devices, Cirtek looks to generate at least $1 million in annual sales initially. It expects a “more significant” contribution from the segment after its customer launches such a device in the market.
In the first nine months of 2016, the company booked an 8% year-on-year increase in consolidated net income to $5.65 million, following an 18% jump in gross revenues to $54.49 million. Net income attributable to the parent, however, dropped 18% to $2.82 million.
Shares in Cirtek closed 20 centavos or 0.84% lower at P23.70 apiece on the Philippine Stock Exchange on Thursday. -- Keith Richard D. Mariano