Semiconductor-maker Cirtek reports 4% profit increase

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MANILA - Cirtek Holdings Philippines Corp. on Wednesday reported that earnings in the first six months of the year inched up on higher sales amid a challenging global environment.

In a statement, the Laguna-based semiconductor assembly and test provider said net income reached $1.8 million in the January to June period, 4 percent higher than the $1.7 million recorded in the same period last year.

Consolidated sales grew 5 percent to $19.3 million from $18.3 million in 2011.

Cirtek attributed the growth to customer- and application-specific packages, the company’s core expertise, which accounts for at least 65 percent of its output.

"The first six months of 2012 has been challenging for the global semiconductor industry, with the Europe debt crisis, sluggish US economy and growth slowdown in China affecting demand for electronic products using semiconductor devices," the company said.

Cirtek expects better performance in the second half of the year on stronger semiconductor demand with the industry seemingly embarking on its next growth cycle.

Growth in the semiconductor industry will be anchored on wireless communication, automotive, industrial electronics and LED applications, the company said.

Its major customers include companies that support major players in the wireless and automotive industries, allowing the firm to capitalize on these growth opportunities.

Cirtek aims to conclude the acquisition of companies in Malaysia and Thailand engaged in the outsourced assembly and test business in the third quarter, a move aimed at boosting revenue and profits.  

Cirtek provides turnkey solutions that include package design and development, wafer probing, wafer back grinding, assembly and packaging, final testing of semiconductor devices, and delivery and shipment to its customers’ end users.

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