Electronics firm Rakon has reported a half-year loss as the global downturn and high New Zealand dollar hit its earnings.
The company makes components for global positioning systems, mobile phones and for aerospace industries.
Rakon lost $6.2 million in the six months to September, a turnaround from the $2 million profit in the same period a year ago.
Revenue fell 9% to $72. 2 million as intense competition drove down prices and the high New Zealand reduced returns from overseas sales.
Managing director Brent Robinson says demand has improved from the depths of the recession at the beginning of the year, though growth is subdued.
Rakon is predicting full year operating earnings of between $4 million and $8 million, underpinned by an ongoing recovery in the GPS market, including mobile smartphones, and growth in telecommunications.
In September, Rakon raised $45 million by issuing new shares to fund the expansion of its Chinese operations. It expects to start building its new facility early next year.