Rakon, which makes crystal oscillators used in smart phones and navigation systems, plunged deeper into the red after writing down the value of its Chinese and New Zealand units, and posting underlying earnings at the bottom of its twice-downgraded guidance.
The Auckland-based company made a loss of $32.8 million, or 17.1 cents per share, in the 12 months ended March 31, from a loss of $420,000, or 0.2 cents, a year earlier, it said in a statement. Earnings before interest, tax, depreciation and amortisation sank 61 per cent to $5.1 million, the bottom end of the $5 million to $7 million range forecast in February. Sales slipped 1 per cent to $176.3 million.
"During the year under review Rakon's board has been reviewing various plans to ensure that the firm's balance sheet is property aligned to market opportunities and solid profit growth," it said. "The final plan will be available and released to the market in July."
The shares dropped 8 per cent to 23 cents yesterday, having plunged 32 per cent this year, valuing Rakon at just $47.8 million. The stock is rated an average 'hold' based on four analyst recommendations compiled by Reuters, with a median target price of 25 cents.
Last year Rakon announced plans to cut up to 60 jobs by shipping manufacturing to China in a bid to strip out $10 million in annual costs, while keeping research and development in New Zealand.