Manufacturing can be profitable, 4RF shows

4RF, one of Wellington's last remaining high-tech manufacturing businesses, has broken into the black and plans to invest in a new product that chairman Peter Troughton says has the potential to "increase revenue substantially".

The company, which makes microwave radio equipment that is used for transmitting data wirelessly over long distances, turned around a $2.4 million loss to post a $525,000 profit in the year to March, according to accounts filed with the Companies Office.

Revenues were up 3.8 per cent to $19.1 million despite the stronger Kiwi dollar. But 4RF remains in negative equity to the tune of $3.3 million, having rung up a total of $33.7 million in accumulated losses since its incorporation in 1998.

Mr Troughton said in a report to shareholders that it had been a good year for the company. The Government had agreed to commit $1.8 million in research funding for the new product, which is aimed at 4RF's existing customer base and should be ready to trial in about a year.

"The specification and target pricing have been developed in close cooperation with some of the company's largest customers."

The Aprisa XE microwave radios, which it now sells, can transmit data, point to point, over distances of up to 100 kilometres at speeds of up to 65 megabits per second. Almost all are exported to overseas utilities, oil and gas companies and aid agencies. The company was named ANZ Wellington Exporter of the Year in 2007.

4RF is on the look-out for new investors, Mr Troughton said.

But the process has been hampered by the deteriorating world economy.

- © Fairfax NZ News