Cirtek eyes more acquisitions

Cirtek Holdings Philippines Corp. expects revenues to grow between 8 and 10 percent in 2014 on top of the 8 percent grwth registered in 2013 on the back new opportunities for acquisition and new projects as well as a projected increase in global demand for
semiconductors.

In a statement, the Laguna-based independent semiconductor assembly and test company said revenue from accretive business
or . new products, new projects and potential acquisitions, will contribute an additional five to eight percent of additional
revenue in 2014. The company said among the possible acquisition is a joint venture with a major Japanese company for the production of
LED back-lighting to be used in consumer electronic devices. But Cirtek did not provide details.

One new project that Cirtek would embark in is the high reliability module assembly combining several technologies
(sensor elements, processing electronics, and firmware) into one package. The package will be used in binoculars, cameras,
night vision optics, laser ranger finders, antenna positioning, and other industrial compassing applications. The second new opportunity is the assembly
of anti-electrostatic discharge package placed in cell phones, smart phones, computers, and other consumer devices.

Cirtek said its consolidated revenue in 2013 amounted to US$44 million, compared with US$40.6 million in 2012, an
increase of 8 percent Cirtek said net income after tax (NIAT) in 2013 rose by about 7 percent to US$4.7 million from US$4.4 million in 2012.
The company said its gross margin remained steady at 13 percent in 210, as the Company carried out comprehensive cost
reduction measures to cope with the rise in raw material prices, power rates and wages.

Growth in 2013 was driven by the successful introduction of new highperformance multichip packages used in
high-power signal amplifiers for broadcast,telecom base stations, microwave and satellite communications, Cirtek said,
Last year also marked a milestone for Cirtek as it received a citation for outstanding new supplier performance by
a customer who is a major player in the aerospace industry. Cirtek also counts of the growth of the semiconductor market worldwide to drive
the company’s revenues. Total semiconductor is expected to grow 8 percent this year.

Cirtek, citing preliminary data from Gartner said that in 2013, worldwide semiconductor revenue grew by five percent to
US$315 billion from US$300 billion in the previous year. Recovery in the US and Europe has been
sluggish, consumer confidence has improved,driving the sales of consumer electronic
products (tablets, mobile phones, home entertainment) and automotive.
But for 2014, analyst forecast the semiconductor industry to grow between four percent to eight percent as tablets and
smart phones will continue to be the key consumer items that will drive growth.

In terms of geographic markets, China is expected to increase in importance as a major end market for electronics
products. Cirtek is an independent complete solution provider for subcontract manufacturing
of semiconductor devices with 29 years of experience in the assembly and testing segment.

It 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. It
listed on the Philippine Stock Exchange in November 2011.
Worldwide Semiconductor Industry Forecast By Application.