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- Release Date: 24/08/12 10:30
- Summary: FORECAST: RAK: Rakon Update on Current Trading
- Price Sensitive: No
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RAK
24/08/2012 08:30
FORECAST
REL: 0830 HRS Rakon Limited
FORECAST: RAK: Rakon Update on Current Trading
RAKON UPDATE ON CURRENT TRADING
Auckland: 24 August 2012 (RAK): Technology company Rakon is optimistic but
cautious about the 2013 financial year, with slowly strengthening demand
across its market sectors, said Managing Director Brent Robinson.
Speaking ahead of the company's Annual Shareholders' Meeting on September 7,
he said the consumer market, fuelled by growth in sales of smartphones and
tablets, has continued to grow and this is reflected in a corresponding
growth in those sales by Rakon. However the competitive market environment
means margins remain tight.
The telecommunications infrastructure market remains below expectation and
that of the prior year. Mr Robinson said Rakon experienced the beginnings of
a recovery in this market at the end of the last financial year, but it has
not continued to grow at the expected pace, as the global economic
environment causes operators to delay spending despite the growth in data.
In spite of this, Rakon remains optimistic for the future, continuing to
increase share within its existing customer basis due to its broadening
product range.
Mr Robinson also highlighted the recently- announced deal with Huawei as
providing significant future growth potential.
Reflecting on overall market conditions, Rakon expects FY13 EBITDA to be
ahead of FY12 with a likely EBITDA range of NZ$14 to NZ$16 million. "If we
achieve the midpoint of that range it will be an 18% increase in profit over
last year," Mr Robinson said. -ends-
More information:
Graham Leaming
Rakon 09 571 9202
www.rakon.com
End CA:00226404 For:RAK Type:FORECAST Time:2012-08-24 08:30:34
