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Cirtek 3Q2016 Net Sales Up by 25%

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MANILA, Philippines – Cirtek Holdings Philippines Corp. (PSE:TECH), a Laguna-based technology company, announced strong sales that is up by 25 percent at US$21.6 million during the third quarter of 2016.

The company also reported its third quarter net income after tax (NIAT), which increased by 29 percent compared last year to US$2.1 million. Core earnings totaled to US$2.1 million, which is higher than last year’s record of US$1.6 million. The returns are inclusive of business operations’ profit and do not take account of nonrecurring items revenue.

The increase in profit during the third quarter is driven by the broadband and smart antenna systems business revenue (Cirtek ATS). In addition, the management reported a stable semiconductor sales growth.

Cirtek ATS revenue in the third quarter reached US$7.3 million, which is a 95 percent climb from last year’s US$3.7 million. The sales of the business segment contributed to 34 percent of total sales during the three-quarter period. Its portion increased by 12 percentage points than the prior year’s same period.

Sales of semiconductor devices increased by six percent in the third quarter from US$13.5 million to US$14.3 million against last year’s record.

During the nine months ending September 30, 2016, consolidated revenue increased by 19 percent from US$45.5 million to US$54.1 million. Alternatively, nine-month NIAT reached US$5.7 million from US$4.9 million last year, a 15 percent growth.

The RF/ Microwave/ Millimeter wave and smart antenna business contributes 35 percent of the company’s nine-month consolidated profit. Last year, it is only accounted for 26 percent. The revenue mix is anticipated to move towards newer opportunities. This is in line with the company’s pursuance of complete systems and more complex products development and manufacturing. The steady growth of semiconductor segment is also forecasted.

For the year relative to the company’s nine-month fiscal report, the management is sustaining solid performance. Record sales and NIAT for the third quarter and nine-month period proved this.

The first half of 2016 balance sheet of the company showed its healthy financial status. Its current ratio stands at 2.6x, interest cover at 10x, and debt to equity ratio at 1.

During the first nine months of the year, solid margins were also achieved by the company. The gross profit margin is valued at 17 percent, EBITDA margin at 15 percent, and NIAT margin at 10 percent.

The forecasted compound annual growth rate of global millimeter wave technology market is 45 percent, which a US$12 billion total availability market by 2020. Major drivers of the market growth include increased millimeter wave usage in backhaul networks and higher demand of radar and security innovative applications. Bandwidth intensive and consumer electronics applications demand also delivers escalation.

Here’s some additional pieces of information about TECH’s top 10 players’ sentiment, foreign fund flow, volatility, and volume.

Top 10 Players’ Sentiment

Participants with a 100% Buying and Selling Activity from Nov-02-2016 to Nov-15-2016 at 03:30PM:

  • 5 out of 38 participants or 13.16% of all participants registered a 100% BUYING activity
  • 21 out of 38 participants or 55.26% of all participants registered a 100% SELLING activity
  • Top 10 Players’ Buying Average: 23.3815
  • Top 10 Players’ Selling Average: 23.4300

TECH - CIRTEK HOLDINGS PHILS. CORP - Top 10 Players' Sentiment - November 15, 2016

Foreign Fund Flow

On a 30-day trading period, TECH is on a Net Foreign Selling worth PHP17,513,590.00.

TECH - CIRTEK HOLDINGS PHILS. CORP - Foreign Fund Flow - November 15, 2016

Risk Level

TECH has a low risk level based on our proprietary risk level indicator.

TECH - CIRTEK HOLDINGS PHILS. CORP - Volatility - November 15, 2016

Volume

There’s no liquidity issue on TECH as shown on this 30-day chart.

TECH - CIRTEK HOLDINGS PHILS. CORP - Volume- November 15, 2016

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