Cirtek Holdings Philippines Corp. reduced the size of a planned commercial paper issuance to P2 billion from the initial target of P6 billion.
Cirtek said in a disclosure to the stock exchange the board approved a shelf registration and issuance of up to P2 billion worth of CP during a three-year period.
“Instead of a registration in the aggregate principal amount of up to P6 billion, the shelf registration of fixed rate Commercial Papers and issuance will only be in the aggregate principal amount of up to P2 billion which may be issued and reissued during the three-year validity of the registration statement,” said Cirtek.
No other details were provided, including the timetable of notes offering and the use of proceeds.
Cirtek in July reported unit Cirtek Electronics Corp. bagged a deal with a US chipmaker that could generate $3 million in annual revenues.
The unnamed US-based company specializes in telecommunications e-band ceramic modules and chipsets.
Cirtek said the chipmaker would transfer its assembly, pre-cap text and RF (radio frequency) final test line from the United States to the unit’s facility in Laguna Technopark, Biñan, Laguna.
CEC will also invest in upgrading its surface mount technology or electronic board assembly, capabilities and capacity.
Cirtek booked a net income of $2.3 million in the first half of the year, down 70 percent from $7.5 million year-on-year. First-half revenues fell 11 percent to $48.6 million from $54.8 million a year ago.
“The global economic slowdown and unique industry challenges have negatively affected demand for electronic and communication devices. As a result, revenue and profitability for the first half of the year have been lower than expected,” said Cirtek president Jorge Aguilar said.
“Despite the challenges, we will continue to aggressively pursue new customers and new markets, continue strategic collaboration with third parties for quicker time to market and broader product offerings to major customers, and continue to driver efficiency across the organization,” he said.
Aguilar added the company’s manufacturing business had lined up several captive customers to drive expansion in 2020.