Cirtek expects higher profit on Quintel acquisition
MANILA, Philippines – Technology firm Cirtek Holdings Philippines Corporation expects its revenues to hit $125 million this year, a 25% surge from its initial projection of $100 million, fueled by the acquisition of US-based antenna service provider Quintel.
Cirtek chief finance officer Anthony Buyawe said they will start consolidating Quintel's operations starting this month, which is expected to add $20 million to $25 million in revenues.
The company also expects higher sales contribution from Quintel to start next year, reaching about $100 million.
Cirtek plans to expand existing capacities with the Quintel acquisition as well. (READ: Cirtek Holdings hires banker Dispo, Silicon Valley pioneer Banatao)
The listed tech firm will market Quintel's high-performance antenna solution in Asia, after it received an inquiry from Singapore's Singtel.
This comes after its announcement to acquire a 100% stake in Quintel for $77 million.
Quintel is a leading innovator of spectrum and space-efficient base station antennas for wireless networks. Among Quintel's major customers are two of the top 5 telecom carriers in North America.
Cirtek chairman Jerry Liu said the Quintel acquisition will also give the company opportunities to further grow its operations in related businesses.
Over the next couple of years, Cirtek also plans to make one or two more acquisitions in line with its thrust to venture into the high growth and high profit margin technology business.
"With this acquisition, we are fulfilling our vision to make Cirtek into a world-class high-tech company," Liu said.
"Combined with Quintel's intellectual property, information technology, and superior product offering in the market, and Cirtek's manufacturing excellence in radio frequency products, we can create a strong force in the market," he added.
Cirtek is primarily engaged in providing complete manufacturing solutions for value-added, integrated radio frequency, microwave, and millimeterwave technology products.
It also offers full service solutions including wafer probing, wafer back grinding, assembly, packaging, and final testing of semiconductor devices.
Trading of Cirtek shares was suspended by the Philippine Stock Exchange (PSE) on Monday, July 31, after the company reported the acquisition.
Cirtek shares were last traded on Friday, July 28, closing at P32 apiece. – Rappler.com