Delays take toll on Rakon's forecast

Last updated 07:47 21/12/2012

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Rakon's annual earnings are expected to fall significantly because of delays in the sales programme in its high reliability and smart wireless device segments.

The listed Auckland hi-tech manufacturer also said yesterday that this was coupled with an expected lower margin on some consumer products.

In August, Rakon indicated annual earnings before interest, tax, depreciation and amortisation (ebitda) would be $14 million to $16m, but it has now revised that to $8m to $12m.

Rakon had previously stuck to its annual earnings guidance after reporting bigger than expected half-year losses ended September. Interim ebitda fell 24 per cent to $4.7m, from the same 2011 half.

Rakon booked a $3.96m net loss for the period, after red ink of $259,000 in the 2011 half. Revenues fell 5 per cent to $89.4m. Fairfax NZ

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- © Fairfax NZ News

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