Rakon cuts full-year guidance on delayed sales, thinner consumer margins

Rakon 5-year NZX performance (S&P Capital IQ; click to zoom)
Rakon 1-year NZX performance (S&P Capital IQ; click to zoom)

Rakon, which makes crystal oscillators used in mobile phones and navigation systems, cut its full-year earnings guidance because of sales delays and thinner margins.

Earnings before interest, tax, depreciation and amortisation would be $8 million to $12 million in the year ending March 31, down from its August guidance of $14 million to $16 million.

The downgrade is "due to a delayed sales programme in the High Reliability and Smart Wireless Device segments of its business, plus a forecast decline in margin from some consumer products," managing director Brent Robinson says in a statement to the NZX today.

Rakon shares fell 2.4% to 40 cents after the statement and have declined 8.9% this year. The stock is rated 'outperform' based on four recommendations compiled by Reuters with a price target of 55 cents.

The former tech darling of the market reached $5.80 a May 2007, a year after its listing.

Mr Robinson says the company is on track with its cost cutting efforts aimed at saving $10 million a year. It said 70% of the changes would be in place by April 1 next year.

Last month Rakon said it would cut up to 60 New Zealand jobs as it shifts more manufacturing to China and India in a bid to lower costs and widen profit margins.


1 · Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

1 Comment & Question

Commenter icon key: Subscriber Verified

At least they are consistent.

  • 0
  • 0

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot


Sym Price Change
USD 0.6648 0.0118 1.81%
AUD 0.9122 0.0050 0.55%
EUR 0.6275 0.0115 1.87%
GBP 0.4404 0.0065 1.50%
HKD 5.1524 0.0896 1.77%
JPY 81.8240 1.6750 2.09%


Commodity Price Change Time
Gold Index 1065.8 6.790 2015-11-30T00:
Oil Brent 44.7 -0.510 2015-11-30T00:
Oil Nymex 41.6 -0.130 2015-11-30T00:
Silver Index 14.1 0.076 2015-11-30T00:


Symbol Open High Last %
NZX 50 6107.5 6150.7 6100.1 0.83%
NASDAQ 5139.6 5141.4 5127.5 -0.37%
DAX 11422.5 11430.4 11382.2 -0.20%
DJI 17802.8 17837.2 17798.5 -0.44%
FTSE 6356.1 6401.4 6356.1 0.59%
HKSE 22197.8 22477.5 21996.4 1.75%
NI225 19799.1 20012.4 19747.5 1.34%