Menu
Rakon engineers a return to profit

Rakon engineers a return to profit

GPS component maker spies a market turnaround after years of subdued gowth.

After reported tough trading conditions in its 2017 financial year, 2018 has delivered a promising tail-wind for Rakon.

After reported tough trading conditions in its 2017 financial year, 2018 has delivered a promising tail-wind for Rakon.

Credit: Supplied

GPS component developer Rakon is engineering a performance turnaround, returning to profit in the six months to 30 September.

After a tough 2017 year, the company has reported an unaudited net profit after tax of $0.9 million, up from a net loss of $5.7 million in the same six months of last year.

Rakon also reported underlying EBITDA of $3.8 million, an increase of $3.2 million in the same period. Revenue of $48.3 million was up 5 per cent.

Gross profit of $20.1 million increased 21 per cent, while gross margin percentage increased to 42 per cent, up from 36 per cent.

Operating expenses decreased by $1.2 million and the company generated positive operating cash flow of $4.9 million for the half.

Rakon said it has continued its focus on technology development with the release of two world-first product platforms, which are attracting strong interest from customers. These compnents are now being sampled into high speed networks and 5G applications.

Data centre demand, in particular the growing requirement for time synchronisation in data centres, contributed strongly to the improved performance, Rakon said.

"As applications move into the cloud, the need for extremely accurate timing increases."

Global positioning revenue was up 13 per cent. Growth also continued in the higher margin industrial markets such as agriculture, surveying and avionics.

"Current run rates and forecasts support the view that this market is returning to growth after years of decline, resulting from smartphones cannibalising the market for traditional personal navigation devices," Rakon said.

Space and defence revenue was up 8 per cent, largely driven by improved sales of New Zealand-manufactured products into the US defence market.

Delivery of open orders from France will generate higher revenue from the defence market in the second half of the current year, Rakon said.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags NetworkingGPSComponentsRakjon

Events

Why experience is the new battleground for partners

Join us for an exclusive webinar, in association with Hewlett Packard Enterprise and Technology Services Industry Association (TSIA) and learn about the latest industry insights and how technology services continue to evolve to deliver differentiated value, and how partners can be successful in 2021 and beyond.

Featured

Slideshows

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

Hundreds of leaders from the New Zealand IT industry gathered at the Hilton in Auckland on 17 November to celebrate the finest female talent in the Kiwi channel and recognise the winners of the Reseller News Women in ICT Awards (WIICTA) 2020.

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards
Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

The leading female front runners of the New Zealand ICT industry joined together for the annual Reseller News Women in ICT Awards event at the Hilton in Auckland, during which hundreds of guests celebrated 13 outstanding individuals who won awards, chosen from more than 50 finalists representing over 30 organisations.

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards
Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Show Comments