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- Release Date: 13/02/13 10:53
- Summary: FORECAST: RAK: Rakon Market update 13 February 2013
- Price Sensitive: No
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RAK
13/02/2013 08:53
FORECAST
REL: 0853 HRS Rakon Limited
FORECAST: RAK: Rakon Market update 13 February 2013
RAKON MARKET UPDATE
13 FEBRUARY 2013 (RAK)
Rakon has just completed a reforecast for the FY13 year ending 31 March and
wishes to adjust the previous guidance provided to the market on 20 December
2012. The previous guidance of an EBITDA range of $8m-$12m is now adjusted to
$5m-$7m.
The downward adjustment comes as a result of the Smart Wireless Device
market's sudden & aggressive price reductions demanded of all key component
suppliers.
The Directors of Rakon are very disappointed to have to accept this downward
reforecast, but wish to emphasise that the planned permanent cost reductions
of $10m p.a. ($7m which take effect from 1 April 2013) are still intact and
on train. The Company is compliant with its bank covenants.
The Balance Sheet of Rakon has been the subject of extensive review over past
months and even though strong (Net Assets of $189m & Net Tangible Assets of
$0.80 per share, as at 30-Sep-12), will be the subject of actions to ensure
it is properly aligned to a future for Rakon that allows the Company to
profit from its strengths.
-ends-
Contact:
Brent Robinson
Rakon (09) 571 9202
www.rakon.com
End CA:00232862 For:RAK Type:FORECAST Time:2013-02-13 08:53:39
