Cirtek Holdings Philippines Inc. is increasing its capital stock to P1.02 billion from P860 million to give the company the flexibility to raise fresh capital to support its expansion plans.
Cirtek said in a disclosure to the stock exchange its board approved an increase in the company’s authorized capital stock to P1.02 billion by increasing the common shares by P120 million and the preferred A shares by P40 million.
“The increase in authorized capital and consequent increase in common shares and creation of preferred C shares give the company the flexibility to raise both equity and debt capital to support business growth, operating expansion and new R&D programs,” Cirtek said.
The Cirtek board also approved the reclassification of 100 million preferred B shares to 100 million preferred C shares. It reduced the par value of common shares to P0.50 per share from P1 and trimmed the par value of preferred S shares to P0.05 from P0.10 apiece.
Cirtek has scheduled a special stockholders’ meeting on Sept 7 to seek shareholders approval on the proposed amendments.
Cirtek reported a net income of $1.9 million in the first quarter of 2018, up 14 percent from a year ago, while consolidated revenues rose 53 percent to $25.9 million.
Revenue contribution from Quintel, a leading provider of advanced high-efficiency, high-performance antenna solution acquired in October 2017, reached $14.7 million for the three-month period. Quintel registered a net loss of $1.1 million in the same period.
Cirtek said Quintel, however, achieved break-even operations in March and was expected to be profitable starting in the second quarter of the year.
Revenues from the semiconductor business amounted to $9.4 million, up four percent from $8.9 million on the year.
Cirtek, which is primarily engaged in providing complete manufacturing solutions for value-added, highly integrated radio frequency, microwave and millimeter-wave technology products, expects Quintel to become the company’s largest revenue contributor over the next couple of years.