Telecoms market downturn pushes Rakon deeper into the red
NZX listed electronics manufacturer Rakon has reported an after tax loss for FY2017 of $13.6m compared to a loss of $1.6m for FY2016 following a 16 percent drop in revenues to $94.7m.
NZX listed electronics manufacturer Rakon has reported an after tax loss for FY2017 of $13.6m compared to a loss of $1.6m for FY2016 following a 16 percent drop in revenues to $94.7m.
NZX listed electronics company Rakon says its investment in Australian IoT startup Thinxtra has been instrumental in driving that company’s growth.
Rakon CEO Brent Robinson has been awarded the Tait Radio Communications Flying Kiwi Award from the Hi-Tech Trust, it was announced yesterday.
Rakon has upgraded its storage area network to meet capacity demands associated with its recently-opened joint venture factory in China. The electronics company has replaced its two IBM DS4700 SANs with an IBM Storwize V7000 SAN.
The opening of Rakon’s new US$35 million facility in Chengdu, China, was marked at a media and analyst conference at the company’s Auckland headquarters today.
Rakon has reported a profit of $8.5 million for the year to March, compared with a $5.4 million loss last year.
Rakon took out the top award at the 2011 Hi-Tech Awards on Friday, winning the New Zealand Trade and Enterprise Hi-Tech Company of the Decade Award.
Rakon has seen an improvement in its results for second half of the 2010 financial year, announced today.
Hi-tech components maker Rakon has slumped to a $6.16 million loss in the six months to September.
The result, which is slightly better than the company's recent guidance to the market indicated, compares with a profit of $1.98 million for the same period a year ago.
Rakon makes quartz and crystal products used in global positioning system (GPS) technology. Its products end up in many electronic devices including mobile phones.
Managing director Brent Robinson said the global downturn had affected the company's New Zealand business in particular.
"As demand returned in the GPS sector, competition intensified and drove sales prices down faster than expected. This coupled with material supply constraints had a significant negative impact on the New Zealand business," he said.
Mr Robinson said results from the British operations continued to be strong, "As we noted at our recent capital raising our UK operations continue to perform very well. Revenue is up 17 percent compared with the same period last year and 10 percent sequentially when compared to the second half of the prior year."
The company recently raised about $65 million of new capital, about half of which is being used to start work on a new manufacturing plant in Chengdu, in southwest China.
For the six months to September revenue was $72.21 million, down from $79.37 million at the same time last year.
Rakon is forecast operating (ebitda) earnings of between $4 million and $8 million for the full year. The company intends to update the market on how it is progressing against that target early in the 2010 calendar year.
"As in any downturn the effort across the business to establish a strong position for the future actually intensifies," Robinson said.
"Our strategies and tactics to develop new opportunities in both consumer and infrastructure markets are progressing well. We are confident this will begin to translate into improved financial results in the second half of the 2010 financial year and beyond."
Technology company Rakon will seek to raise $65 million to pay for a new Chinese manufacturing facility.
Despite revenues being down 12% to $79.4 million for the latest half-year compared with the previous half-year, Rakon remains confident and sees opportunities, managing director Brent Robinson says.
Navman founder Peter Maire is to sell up to three million of the 14.9 million shares he holds in Rakon, with the proceeds to be used to fund other companies Maire is involved with.
Auckland-based GPS crystal developer Rakon has signed a joint venture agreement with Indian owned and based Centum Electronics to manufacture some Rakon products alongside in Bangalore, India.
GPS crystal manufacturer Rakon has boosted revenue by 78% year on year for the six months ended 30 September 2007, but currency volatility has damaged overall performance.
It’s game-on between Microsoft and SAP at GPS component-manufacturer Rakon after the company ditched its SAP CRM software in favour of Microsoft’s Dynamics CRM.