LAGUNA-BASED Cirtek Holdings Philippines Corp. said its income plunged last year, dragged by the net loss of its United States unit.
Cirtek said its net income fell 39 percent to $4.3 million (about P223 million), from the previous year’s $7.12 million (P369.99 million).
The company said it booked a net loss of $4.2 million (P218.25 million) for its US unit Quintel Technology Ltd., the maker of small-base station antennas for the telecommunication companies.
The company said the lower net profit was due to higher interest payments for the acquisition of Quintel, as well as the US-based company’s losses.
“Quintel as we have conveyed to our investors is both a turnaround and growth story. Quintel will achieve profitability through increased sales and reduction in its cost structure,” Cirtek Vice Chairman Roberto Juanchito Dispo said.
“We are confident Quintel will be on the path to profitability in 2018,” he said.
The company earlier said it expects to get Quintel in the black within 12 months of its acquisition in August 2017.
Cirtek is building up Quintel’s sales force, embarking on cost-reduction initiative, and ramping up production capacity for its smart antenna manufacturing subsidiary, it said.
Revenue before consolidation amounted to $107.7 million, the company said.
After consolidation adjustment, net revenues were $88.7 million, a 19-percent increase from the previous year’s net revenue of $74.3 million.
“Cirtek’s manufacturing business registered solid profits as a result of strong manufacturing processes,” Dispo said.
Cirtek Electronics Corp. reached net sales of $43.4 million, while Cirtek Advanced Technologies and Solutions Inc. had sales of $26.7 million. CEC booked a net profit of $2.5 million, and Catsi posted a net profit of $8 million.