Rakon returns to black ink with $908,000 to September

WELLINGTON: Rakon has turned to a firsthalf profit from a loss a year earlier, citing growth across the technology company’s key markets, improved margins and lower costs.

The Aucklandbased technology company posted a profit of $908,000 in the six months ended September 30, from a loss of $5.7 million a year earlier.

Revenue advanced 5.1% to $48.3 million, as operating expenses dropped 5.7% to $19.5 million, it said yesterday.

Managing director Brent Robinson says the company, which designs and manufactures advanced frequency control and timing products, has achieved modest revenue growth across all its key market segments of telecommunications, global positioning, and space and defence.

While the telecommunications market remained subdued, he said the company had strong sampling for two new product platforms that can lead customer’s nextgeneration technology requirements.

Rakon generated positive cash flow in the period of $4.9 million, compared with negative cash flow of $600,000 in the yearearlier period, which helped the company reduce net debt to $30,000 from $19.7 million.

Firsthalf underlying earnings before interest, tax, depreciation and amortisation jumped to $3.8 million from $600,000 in the yearearlier period and the company reiterated its forecast for fullyear earnings on that measure of between $10.7 million and $12.7 million.

In its largest market of New Zealand, underlying ebitda lifted to $4 million from $292,000 a year earlier, while its Chinese investments boosted earnings to $1.4 million from $809,000.

In the United Kingdom, underlying ebitda dropped to $815,000 from $1 million, and in India earnings fell to $371,000 from $531,000.

In France, the underlying ebitda loss narrowed to $1.3 million from $1.6 million, while in Australia the loss widened to $1.3 million from $921,000.

Rakon won’t pay a firsthalf dividend. Its shares last traded at 21.5c, having dropped 2.3% this year. — BusinessDesk