EARNINGS of Cirtek Holdings Philippines Corp. dropped 60% in the second quarter of 2019, weighed down by lower demand for electronic and communication devices.
In a regulatory filing, the listed electronics manufacturer posted a net income of $2.26 million in the April to June period, lower than the $5.58 million it booked in the same period a year ago. This came on the back of a 5% decline in net sales to $27.62 million.
On a six-month basis, the listed firm’s net income slipped 69% to $2.29 million, while net sales also dipped 11% to $48.64 million.
“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,” Cirtek President Jorge S. Aguilar said in a statement.
The company traced the decline to a 45% decrease to $17 million in the revenue contribution of US-based antenna manufacturer Quintel, which it acquired in August 2017.
Meanwhile, revenues from the semiconductor business was flat at $20.6 million.
Despite the slowdown, Cirtek Chairman Jerry Liu said they remain well positioned for future growth, especially with Quintel’s new line of wireless base station antennas.
“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.
Cirtek earlier said it plans to grow Quintel’s revenues to $500 million, while also aiming for a listing at the Nasdaq Stock Market.
For his part, Mr. Aguilar said they will continue to pursue new customers and new markets, as well as to collaborate with third parties in order to facilitate operations.
Shares in Cirtek lost 1.32% or 16 centavos to close at P11.92 each at the stock exchange on Tuesday. — Arra B. Francia
