KEY POINTS:
Rakon's first half net profit has fallen 66 per cent to $1.98 million.
The quartz crystal components company today said the result was affected by an increase in depreciation and financing costs plus a higher effective tax rate, due to French operating losses.
For the six months to the end of September sales revenues were down 12 per cent to $79.4m, which the company said was linked to the global economic situation.
Earnings before interest, tax, depreciation and amortisation (ebitda) for the half year were down 16 per cent on the corresponding period last year to $10.4m.
Shortly after the sharemarket opened with an overall strong rise, Rakon's share price was down 38c, or 22.5 percent, to a year-low $1.31.
Managing director Brent Robinson said uncertainty and volatility in customer orders and forecast, and the short lead times Rakon operated in, made it difficult to forecast a result for the second half of the 2009 financial year.
But he expected the second half result to be in line with, or slightly below that achieved in the first half of this year.
The company said it had retained its share in key markets, with customer relationships remaining strong.
Global efforts to develop new opportunities in consumer and infrastructure markets were going well, and the company was confident they would translate into good business in the 2010 financial year.
"Rakon's world consumer markets are in a tough space but our close relationships with market leaders means that we expect to grow strongly again as their markets recover," Rakon said.
The directors remained confident of the growth plan for Rakon and expected the 2010 financial year to produce strong growth as world markets returned to a more steady state, and the company's investment in telecom infrastructure and mobile phones began to find real market traction.
- NZPA
