Wellington, May 27 NZPA - Rakon reported a 59 percent fall in full year net profit to $4.5 million as global economic troubles hit sales.

The quartz crystal components company today said the result for the year to the end of March took into account higher depreciation and a higher effective tax rate.

Revenue was down 20 percent from a year earlier to $139.5m, while earnings before interest, tax, depreciation and amortisation (ebitda) fell 27 percent to $18.5m.

A strong focus on working capital delivered an operating cash flow of $16.6m, up from $1.4m in the prior year, Rakon said.

That had enabled the company to maintain its investment in product development for future revenue growth and maintain a healthy balance sheet with substantial unused debt facilities.

Managing director Brent Robinson said the company was pleased with its achievements in "a very challenging" economic environment.

"Our decision to diversify into non-consumer markets has helped insulate us from the slowdown in certain retail sectors and puts us in a strong position as consumer confidence returns."

Revenue from the New Zealand business, which is largely focused on sales into consumer GPS products, was significantly affected by the global economic climate in the second half of the year.

As a result New Zealand revenue for the full year was down 27 percent to $80m, Rakon said.

Selling prices for high volume products fell 20 percent over the year with half of that concentrated in the final quarter. Total sales volume was also down 25 percent.

Rakon was seeing some demand returning in consumer markets, but the company remained cautious in the current economic climate, Mr Robinson said.

No dividend was declared.

NZPA