Rakon Posts First-Half Profit as Sales Increase
Stock Chart for Rakon Ltd (RAK)
Rakon Ltd., a New Zealand-based supplier of crystal oscillators for global positioning systems, posted a first-half profit after sales and market share rose.
Net income totaled NZ$5.6 million ($4.4 million) in the six months ended Sept. 30 compared with a NZ$6.2 million loss in the same period a year ago, the Auckland-based company said in a statement. Sales gained 31 percent to NZ$94.6 million.
Rakon is expanding production in response to demand for oscillators which are used in smartphones and are a key component of femtocells, used by companies such as Vodafone Group Plc and AT&T Inc. to improve mobile network coverage. The company will open a new plant in Chengdu in mid-2011 while its plants in India and the U.K. have doubled capacity.
The first-half result extends a recovery from 12 months ago when sales were hit by the global financial crisis, Chief Executive Officer Brent Robinson said in the statement.
The company is well-positioned in all markets and is comfortable with analysts’ estimates that operating profit, or earnings before interest, tax, depreciation and amortization will be NZ$25 million to NZ$30 million in the year ending March 31, he said.
Operating profit was NZ$13.5 million in the first half and NZ$4.3 million in the year ended March 31.
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