REL: 0907 HRS Rakon Limited
HALFYR: RAK: Rakon HY2017 Preliminary Results Announcement
Results for announcement to the market
Date: 17 November 2016
Rakon Limited (RAK)
Rakon posts Underlying EBITDA of NZ$0.6 million for first half
High technology company Rakon has posted revenue of NZ$46.0 million for the
six months ended 30 September 2016, down NZ$12.0 million on the previous
corresponding period, as sales to global telecommunications network operators
from Rakon's customers remained sluggish. The decline in revenue resulted in
Rakon reporting Underlying EBITDA of NZ$0.6 million and a net loss for the
period of NZ$5.7 million.
Managing Director Brent Robinson said network operators had continued during
H1 to defer investment in infrastructure, affecting Rakon's sales to
equipment manufacturers. With early H2 orders turning higher, the Company is
forecasting H2 revenue to be up 12%-15% on H1.
Mr Robinson said initiatives to reduce Rakon's annual operating expenses by
20 percent, announced to shareholders ahead of the company's last Annual
Shareholders' Meeting, were almost completed. While one-off costs associated
with implementing this programme meant the full benefits would not flow
through to the bottom line until the 2017-18 financial year, operating
expenses for the six months ended 30 September 2016 were down 11.2 percent on
the previous corresponding period.
Mr Robinson said Rakon was maintaining its commitment to R&D, with
customer-led requirements and a particular focus on developing products for
the future rollout of 4.5G and 5G network technology.
Mr Robinson also noted the success of Internet of Things network developer
and operator Thinxtra, in which Rakon holds a cornerstone shareholding.
During the past six months, Thinxtra had extended the outdoor coverage of the
network to 50 per cent of Australia & New Zealand's population and had signed
its first significant network connections deal.
Thinxtra remained on track to provide network coverage to 85 percent of all
Australians and New Zealanders by the end of June 2017.
Rakon is expecting an improved performance over the second half due to higher
revenue. The directors confirm that they expect to report Underlying EBITDA
of between NZ$3 million and NZ$5million for the full year, FY2017.
Chief Executive Officer
Rakon 021 206 0985
End CA:00292803 For:RAK Type:HALFYR Time:2016-11-17 09:07:30