21 Dec 2012

Rakon shares fall after earnings warning

7:44 am on 21 December 2012

Shares in Rakon have fallen a tenth after the listed electronics company issued an earnings warning.

The listed electronics company is picking gross earnings of $8 - $12 million for the year to March, compared with the $14 -$16 million it forecast in August.

It's blaming the decline on delayed sales and reduced margins on some of its products.

The listed electronics company reported a $3.9 million loss in the six months to the end of September, and is axing jobs in Auckland by shifting some production to China, resulting in savings of about $10 million a year.

The company says it remains on track to have 70% of those savings in place by the end of March.

Rakon's share price fell 4 cents to 37 cents each on Thursday.