19 May 2016

Rakon makes full year net loss - revenue falling

11:38 am on 19 May 2016

The chips are down for the electronic device manufacturer Rakon, which reported a full year loss against falling revenue, as global telecommunications company invest less in infrastructure.

Internet of things, Rakon, file photo

(File photo) Photo: 123RF

Rakon made a net loss of $1.7 million, swinging from a net profit of $3.2m the year earlier.

Revenue was down 14 percent to $112.7m, while underlying profit fell 41 percent to $9m.

The company's operating expenses rose just over 3 percent.

Rakon Managing Director Brent Robinson said major network operators around the world had continued to delay infrastructure investment, which affected Rakon's main source of revenue.

Rakon CEO Brent Robinson

Rakon chief executive Brent Robinson. Photo: RAKON

"As we flagged earlier this year, major network operators continue to favour investment in 5G bandwidth and (merger and acquisitions) over spending on base stations and other infrastructure," he said.

On the plus side, Mr Robinson said an increased usage of GPS technology has generated significant opportunities for Rakon, and he expected the growing Internet of Things to increase opportunities.

"It will also generate massive amounts of data, which will in turn require new infrastructure," he said.

The Internet of Things is a network of physical objects embedded with electronic sensors and software that allow them to interact and be remotely controlled via the internet.

Rakon has recently taken a cornerstone stake in Australia's Thinxtra, a communications network operator, which is the exclusive Australasian agent to roll out the new Internet of Things network for the global provider, Sigfox.

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