Auckland-based GPS crystal and component manufacturer Rakon has returned to profit in the year to 31 March.
Rakon, which has had a roller coaster ride on the NZX in recent years, reported strong preliminary earnings with a net profit after tax of $10 million compared with a net loss of $13.6 million in 2017.
Underlying EBITDA came to $12.1 million compared with $4 million in 2017 and was in line with guidance of between $10.7 million and $12.7 million.
Revenue was up seven per cent with growth coming from space and defence, up 29 per cent, and global positioning revenue, up nine per cent.
However, results in Rakon's core telecommunications market were flat on a US currency basis.
The results also include non-recurring gains of nearly $8.8 million from the sale of property and the partial sale of IoT network company Thinxtra and a subsequent capital raising which lifted that unit's value.
Rakon managing director Brent Robinson said the company had achieved growth in two of its three core markets,
“It is pleasing to see our revenue growing again, with the increase in space and defence coming from an improved product offering to both new and existing markets," he said.
Robinson said the $5.5 million buyout of Centum Rakon India last month was a "pivotal strategic decision" that gives Rakon the opportunity to grow profits.
"Having total ownership and full decision-making control means that we can leverage the benefits that this established low cost manufacturing platform offers," he said.
Positive operating and investing cash flows also saw the balance sheet moved from net debt to having $7.4 million in net cash, enabling the buyout after balance date.
“The technology and solution design requirements for next generation 5G telecommunication networks and applications is becoming clearer, with Rakon well positioned with its product and technology offering," Robinson said of the telco segment.
The company also announced that chair Bryan Mogridge would retire at the upcoming shareholders meeting to be replaced by director Bruce Irvine.