REL: 1457 HRS Rakon Limited
FORECAST: RAK: Rakon Update on FY2016 Earnings Guidance
29 JANUARY 2016
RAKON LIMITED (NZX: RAK)
UPDATE ON FY2016 EARNINGS GUIDANCE
Rakon Limited ("Rakon" or "the Company") expects to report Underlying EBITDA
of between NZ$9.0 million and NZ$10.0 million for FY2016. This compares with
the previous forecast of NZ$15.4 million, provided at Rakon's interim results
presentation last November.
Despite the 46% increase in first half Underlying EBITDA, the Company noted
at the time that major network operators have been reducing spending on
equipment in favour of investment in 5G bandwidth and M&A activities.
Previously, it was expected that investment in infrastructure would resume in
the second half of the current financial year; however, latest forecasts from
the market now indicate this is likely to be further delayed.
Rakon CEO Brent Robinson said he is very disappointed with the impact this
delay will have on Rakon this financial year but remains confident that the
continued growth in data usage and internet connectivity will force network
operators to upgrade their infrastructure in order to maintain network
service levels and market share.
Mr Robinson said Rakon was continuing to improve its operational efficiencies
and develop new products for customers across a range of industries, as well
as exploring how it can take advantage of new trends such as the rapid growth
in Machine to Machine (M2M) communications.
"The potential of the Internet of Things to create new products and services
provides opportunities for a company with our technological expertise and
proven product development ability," Mr Robinson said.
"We expect to be able to provide a further update of our plans in this area
during the first quarter of the year," Mr Robinson said.
Chief Executive Officer
Simon Bosley (CFO)
027 898 7899
Rakon is a global high technology company and a world leader in its field.
The company designs and manufactures advanced frequency control and timing
solutions for telecommunications, global positioning and space and defence
applications. Rakon products are found at the forefront of communications
where speed and reliability are paramount. The company's products create
extremely accurate electric signals which are used to generate radio waves
and synchronise time in the most demanding communication applications. Rakon
has five manufacturing plants including two joint venture plants and has five
research and development centres. Customer support centres are located in ten
offices worldwide. Rakon is a public company listed on the New Zealand stock
exchange, NZSX, ticker code RAK.
End CA:00277009 For:RAK Type:FORECAST Time:2016-01-29 14:57:33