- Release Date: 19/05/16 08:45
- Summary: FLLYR: RAK: FY2016 Preliminary Results Announcement
- Price Sensitive: No
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RAK 19/05/2016 08:45 FLLYR PRICE SENSITIVE REL: 0845 HRS Rakon Limited FLLYR: RAK: FY2016 Preliminary Results Announcement Results for announcement to the market Date: 19 May 2016 Rakon Limited (RAK) Reporting period 12 months to 31st March 2016 Previous reporting period 12 months to 31st March 2015 COMMENTS Telcos' infrastructure investment delays reduce earnings for Rakon o Net loss after tax of NZ$1.7m vs Net profit after tax of NZ$3.2m in FY2015 o Revenue NZ$112.7 million (FY2015 NZ$131.4 million) o 25% decrease in revenue from Telecommunications major contributor to decrease in total sales volumes and revenue o Growth in margin dollars (and % of revenue) from consolidated subsidiarie FY2016 NZ$47.9 million (43%) vs NZ$41.8 million (32%) in FY2015 o Increase in operating cash flow: FY2016 NZ$7.3 million vs NZ$3.6 million operating cash flow loss in FY2015 o New investment in Thinxtra opens up opportunities in Internet of Things (IoT) NZD Millions, Audited FY2016 FY2015 % Change Revenue 112.7 131.4 (14.2) Underlying EBITDA1 9.0 15.4 (41.4) Net profit/(loss) after tax(1.7)3.2 (>100.0) Gross Profit 47.9 41.8 14.6 Operating expenses 47.8 46.2 (3.3) Operating cash flow 7.3 (3.6) >100.0 Net debt 12.6 13.4 6.0 1 A detailed reconciliation of Underlying EBITDA to net profit/(loss) after tax, is included at Note B1 of the Audited Financial Statements. Reduced capital expenditure by telecommunications companies around the world has seen global high technology company Rakon Limited post a net loss after tax of NZ$1.7 million on revenue of NZ$112.7 million for the year ended 31 March 2016. The company's Underlying EBITDA of NZ$9.0 million was in line with forecasts issued earlier this year. Rakon Managing Director Brent Robinson said major network operators around the world had continued to delay infrastructure investment. This had affected sales in Rakon's telecommunications market segment, which remains the company's main source of revenue. "As we flagged earlier this year, major network operators continue to favour investment in 5G bandwidth and M&A activities over spending on base stations and other infrastructure," he said. Mr Robinson said the move to 5G would in itself create a need for increased infrastructure investment to cope with growing demand for an ever-expanding range of applications and faster network speeds. Rakon has strong relationships with both network equipment and original design manufacturers, meaning it was well-placed to benefit from an upturn in infrastructure investment, but remained cautious about forecasting exactly when demand would rebound. Mr Robinson said the increasing usage of GPS technology in a whole range of industries was generating significant opportunities for Rakon. Changing technologies, including the decline of the Personal Navigation Device in favour of other solutions, was helping to drive increased margins in Rakon's Global Positioning business, while the company's automotive customers were looking beyond GPS to address advanced connectivity applications for Smart Cars. Rakon's Space and Defence segment was also expecting increased sales in the coming year, with the introduction of new products following the completion of several key long-term development projects during FY2016. Rakon's move to diversify into the Internet of Things (IoT) business via a cornerstone shareholding in Thinxtra, which will develop and operate the SIGFOX global network in Australia and New Zealand, made the company part of a worldwide network of potential customers for its innovative component technology, said Mr Robinson. "The SIGFOX network is the only global network designed with the IoT in mind. It has the lowest deployment-and-maintenance costs of any system proposed, making it viable for a huge number of applications that will revolutionise the way we work and live, and Rakon is excited to be involved in bringing it to this part of the world," he said. "It will also generate massive amounts of data, which will in turn require new infrastructure. Rakon's track record as an innovator in semiconductors equips it to be a supplier of choice to customers around the world." Overall, Rakon was maintaining a strong focus on continuous improvement in operational excellence and efficiency. In the past year, it has been standardising its global quality systems to ensure best in class quality and customer service. The Directors confirm that this FY2016 preliminary results announcement is based on audited results. Brent Robinson Chief Executive Officer & Managing Director -ends- Media Enquirie Louise Howe (Media Liaison) 021 206 0985 www.rakon.com About Rakon Rakon is a global high technology company and a world leader in its field. The company designs and manufactures advanced frequency control and timing solutions for telecommunications, global positioning and space and defence applications. Rakon products are found at the forefront of communications where speed and reliability are paramount. The company's products create extremely accurate electric signals which are used to generate radio waves and synchronise time in the most demanding communication applications. Rakon has five manufacturing plants including two joint venture plants and has five research and development centres. Customer support centres are located in ten offices worldwide. Rakon is proud of its New Zealand heritage; it was founded in Auckland in 1967. It is a public company listed on the New Zealand stock exchange, NZSX, ticker code RAK. End CA:00282616 For:RAK Type:FLLYR Time:2016-05-19 08:45:27
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