Friday 24th August 2012
|Text too small?|
Rakon, which makes crystal oscillators used in smart phones and navigation systems, said 2013 earnings will be an improvement on last year's results, when a high kiwi dollar compounded the impact of lukewarm demand from the telecommunications sector.
Earnings before interest, tax, depreciation and amortization are expected to be $14 million to $16n million in the year ending March 31, 2013, managing director Brent Robinson said in a statement.
That would compare with $13.1 million last year, which was about half the 2011 result. Robinson said the company is seeing "slowly strengthening demand across its market sectors."
Sales growth for smartphones and tablets has been reflected in "corresponding growth in those sales by Rakon" though competition "means margins remain tight." "The telecommunications infrastructure market remains below expectation and that of the prior year," he said.
"Rakon experienced the beginnings of a recovery in this market at the end of the last financial year, but it has not continued to grow at the expected pace, as the global economic environment causes operators to delay spending despite the growth in data."
Shares of Rakon last traded at 47 cents, having rallied last week when the company signed a letter of intent with Huawei Technologies, quadrupling its sales to the Chinese company to US$56 million over the next five years. Rakon's market value is $91.7 million and it dropped out of the NZX 50 Index in June to reflect its shrinking size.
No comments yet
Turners Automotive Group Limited (NZX: TRA) Upgrades FY21 Earnings Guidance
Blackwell Global Holdings Limited (NZX: BGI) Restructure of Business Operations
Vista Group International Limited (NZX: VGL) Vista Group appoints James Miller as Independent Director
Rakon Limited (NZX: RAK) Update of FY2021 Earnings Guidance
The a2 Milk Company Limited (NZX: ATM) Organisational Announcement
Reserve Bank of New Zealand Committed to Action as It Responds to Data Breach
MHM Automation Limited (NZX: MHM) Settlement of New Plymouth Building Sale
Napier Port Holdings Limited (NZX: NPH) First Quarter 2021 Trade Volumes
New Zealand Oil & Gas Limited (NZX: NZO) Mahato PSC Update - Oil Production
Michael Hill International Limited (NZX: MHJ) Update - Dividend/Distribution