REL: 1337 HRS Rakon Limited
MKTUPDTE: RAK: Market update - Rakon forecasts improved earnings
14 August 2017
RAKON LIMITED (NZX: RAK)
Rakon forecasts improved earnings
Global high-technology company Rakon expects earnings to improve during the
current financial year, which runs until 31 March 2018.
Speaking ahead of Thursday's Annual Shareholders' Meeting, Rakon Managing
Director Brent Robinson said Rakon expected increased contribution from its
core markets of Telecommunications, Global Positioning and Space & Defence
where revenue had performed ahead year-on-year for the first quarter of 2018.
It is also anticipated the actions the company had taken to reduce operating
expenses would continue to register on the bottom line.
"Over the past couple of years, our Space & Defence business has secured some
important new customers, and these customers are now starting to generate
increased revenue," Mr Robinson said.
Mr Robinson said Rakon's Telecommunications business, hampered in recent
years by major network operators' reluctance to invest in infrastructure, was
"While the overall market remains sluggish, we are picking up new customers
for some of our higher-margin components," said Mr Robinson.
Mr Robinson said the increase in revenue for the first three months versus
the prior corresponding period, was reflecting positively in improved
earnings which it expected to sustain throughout the balance of FY2018.
The company expects to report Underlying EBITDA for FY2018 in the range of
between $9 million to $11 million (FY2017: $4.0 million). This EBITDA will
deliver a return to positive net profit after tax.
Chief Executive Officer & Managing Director
Louise Howe (Media Liaison)
021 206 0985
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
Rakon is proud of its New Zealand heritage; it was founded in Auckland in
1967. It is a public company listed on the New Zealand stock exchange, NZSX,
ticker code RAK.
End CA:00305456 For:RAK Type:MKTUPDTE Time:2017-08-14 13:37:23