A SUBSIDIARY of Cirtek Holdings Philippines Corp. (CHPC) has been tapped by London-based electronics manufacturer Filtronic PLC for the distribution of certain antenna products in North America.
In a disclosure to the stock exchange on Monday, CHPC said its wholly-owned unit Quintel USA, Inc. has been appointed by Filtronic as the exclusive distributor in North America of antenna products to some mobile network operators.
“This distribution agreement is an excellent opportunity for Filtronic to gain greater traction in the US market. We are delighted to be working with Quintel and we believe that we complement each other very well,” CHPC quoted Filtronic Chief Executive Officer Robert Smith as saying in a statement.
US-based firm Quintel was acquired by CHPC in July 2017, as part of efforts to expand its footprint in the antenna market. The company looks to grow Quintel into a $500-million revenue firm, after which they target to list the company in the Nasdaq Stock Market.
Aside from a distribution agreement, the two firms also signed a memorandum of understanding where they can identify areas of cooperation ranging from product co-development to manufacturing.
Filtronic designs and manufactures advanced radio frequency communications products, which are supplied to leading original equipment manufacturers in the mobile telecommunications infrastructure and critical communications markets.
CHPC noted that Filtronic’s antenna products are complementary to Quintel, with very minimal overlaps in the product lineup.
The products covered by the deal include Quasi-Omni and Panel antennas which are specifically produced for the US market. Other products are for 4G/LTE and 5G Evolution applications for frequency ranges between 600 megahertz and 6 gigahertz.
“The cooperation will augur well for both groups due to clear symbiotic business objectives as Filtronic can leverage on Quintel’s extensive organic sales force supported by a strong sales representative organization covering entire US markets for the distribution of its products,” CHPC Vice Chairman and President Roberto Juanchito T. Dispo said in a statement.
Mr. Dispo also noted that there is a “strong potential” to further elevate their partnership to a “higher level of business collaboration in the future.”
CHPC booked a net income attributable to the parent of $5.53 million in the first nine months of 2018, almost double its $2.77- million profit in the same period a year ago. This followed a 30% jump in gross revenues to $88.48 million in the nine-month period.
Shares in CHPC dropped 1.44% or 45 centavos to close at P30.85 each at the stock exchange on Monday. — Arra B. Francia
