Earnings of Cirtek Holdings Philippines Corp. surged to $1.27 million in the first quarter due to improved sales and better operating profit margins.
In a regulatory filing disclosed Friday, the electronics manufacturer said its attributable net income during the January-to-March period is 8,664% higher than last year’s $14,500.
Gross revenues went up 6% to $22.27 million due to the increase in orders for its antenna products. Contributions from Cirtek’s wholly-owned subsidiary Quintel USA, Inc. stood at $6.9 million, up 3% from the previous year.
Revenues from radio frequency/microwave/millimeter wave (RF/MW/mmW) and antenna manufacturing businesses rose 37% to $5.7 million, while revenues from the semiconductor business fell 4.5% to $9.7 million.
Gross profit jumped 68% to $6.3 million as cost of sales declined 8% to $15.97 million.
The increase in gross profit is attributed to reductions in costs, particularly in design improvement and price reductions to China contract manufacturers. Freight costs also fell due to the increased sea shipments and a reduction in air shipments.
The company’s gross margin improved by 10% to 28% for the three-month period.
Last month, Cirtek said it was exploring opportunities in China and Taiwan as part of diversifying its supply chain. The company’s manufacturing capacity is currently limited to 60% because of quarantine restrictions and safety protocols amid the coronavirus outbreak.
“As part of Cirtek’s business continuity and expansion plans, it is in talks with an additional contract manufacturing partner in China as well as qualifying a new Taiwan facility in response to supply chain diversification and business resiliency plans moving forward,” it said in a May 12 statement.
Cirtek is in the business of manufacturing technology products used in communications, consumer electronics, power devices, computing, automotive and industrial sectors. These are exported across Europe, United States and Asia.
Shares in Cirtek at the stock exchange gained 46 centavos or 5.48% to P8.86 each on Friday. — Denise A. Valdez
