CIRTEK Holdings Philippines Corp. (CHPC) on Wednesday said its subsidiary has bagged a deal with a US chipmaker, which is expected to generate $3 million in annual revenues.
In a disclosure to the stock exchange, the listed company said Cirtek Electronics Corp. (CEC) has been tapped by a US-based chipmaker and technology firm to make modules and chipsets that will be used in 5G wireless systems.
The unnamed company, which is based in Silicon Valley, specializes in telecommunications e-band ceramic modules and chipsets.
“The 5G products, which will be used for data traffic control and for high bandwidth, high speed transmitters, are expected to generate revenues to Cirtek of up to $3 million per year starting 2020,” CHPC said.
CHPC said the chipmaker “will transfer their assembly, pre-cap text and RF (radio frequency) final test line” from the United States to CEC’s facility in Laguna Technopark, Biñan, Laguna.
CEC will invest in upgrading its surface mount technology or electronic board assembly, capabilities and capacity.
At the same time, CHPC said another subsidiary Cirtek Advanced Technology and Solutions, Inc. (CATSI) is looking to boost revenues from its RF board module assembly business by 33% to $4 million this year.
“A major customer is consolidating its business and aims to capitalize on CATSI’s vast experience in RF, microwave and millimeter wave manufacturing,” the company said.
CHPC reported its net income attributable to the parent slumped 98% to $14,500 in the first three months of 2019, from $968,371 during the same period a year ago.
Consolidated revenues dropped 19% to $21.02 million in the first quarter, due to lower revenue contribution from Quintel, a US-based company it acquired in August 2017.