KEY POINTS:
Strong sales growth in the personal navigation market helped Rakon lift revenue 48 per cent to $50.46 million in the September half-year.
Earnings before interest, tax and depreciation rose 194 per cent, compared to the same period in 2005, to $10.14m, Rakon said today.
Earnings before interest and tax (ebit) were up 226 per cent to $8.54m, while net surplus after tax rose 300 per cent to $5.56m.
Underlying revenue growth was 33 per cent when the impact of currency movement was removed, Rakon said.
The increase resulted from strong sales growth, mainly in the consumer personal navigation market aided by a lower New Zealand dollar exchange rate against the United States currency.
Rakon, which makes quartz crystals for use in Global Positioning Satellites (GPS), mobile phones and missiles, generates most of its revenue in the US.
It said the substantial improvement in earnings was a result of the revenue growth, along with lower unit material costs, improved factory efficiency and lower interest costs.
The first half result left it well-placed to meet a full year ebit forecast of $14.8m.
As noted earlier, that would be a $3m improvement over the forecast in its prospectus, Rakon said.
The company debuted on the NZ sharemarket in May at a 50 per cent premium to its $1.60 per share issue price. Its shares closed yesterday at $3.46, just down from the high of $3.50 reached last Wednesday.
In June, the Government gave Rakon the all clear to continue the export of components that could end up in smart bombs and missiles manufactured in the US.
Disarmament Minister Phil Goff said foreign affairs officials and technical advisers were satisfied that the crystal oscillators Rakon exported were not covered by the Strategic Goods List and therefore did not require an export permit.
Mr Goff said that to make the strategic goods list an item had to be specifically designed for military use and Rakon said it was not doing that.
- NZPA
