Rakon Slumps Most in Seven Months After Loss: Wellington Mover
Rakon Ltd. (RAK), a maker of crystal oscillators for global positioning systems, fell the most in seven months in Wellington after reporting a full-year loss as New Zealand currency gains curbed revenue.
The loss was NZ$420,000 ($321,600) in the year ended March 31 compare with a NZ$8.5 million profit a year ago, the Auckland-based company said in a statement. The shares fell 9.3 percent, their biggest tumble since Nov. 15, 2011.
Rakon products are used in smartphones, cameras, military equipment and telecommunications networks globally. Revenue and earnings from exports and its overseas manufacturing sites have been curbed by a slower world economy and the New Zealand dollar’s 7.5 percent gain in the year through March, it said.
“When you are involved in high growth markets, there is always going to be some variability,” Chief Executive Officer Brent Robinson said in the statement. “We have never felt better about the business’s overall position, the market opportunity and our customers.”
The stock fell 5 cents to 49 cents at the 5 p.m. closing in Wellington, after earlier trading as low as 46 cents.
Full-year earnings before interest, tax, depreciation and amortization dropped to NZ$13.1 million from NZ$24.8 million a year earlier, the company said. In August, the company forecast earnings of NZ$14 million to NZ$18 million.
Assuming a constant currency, earnings would have fallen by about NZ$2.5 million, it said.
Full-year revenue fell 6 percent after conversion to New Zealand dollars. Revenue in U.S. dollars rose 4 percent.
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