Rakon Cuts Half-Year Loss with 30% Revenue Surge

Chip manufacturer Rakon has significantly reduced its half-year loss, reporting a 30 percent increase in revenue for the period ending in September 2023. The company attributed this positive shift to a resurgence in sales of its specialized systems, which cater to the satellite, telecommunications, and computer sectors.

During this half-year period, Rakon highlighted a clear return to growth as it expanded its market share in core segments. The company has also increased its production capacity globally while implementing cost-cutting measures across its operations in New Zealand, India, and France. According to Chief Executive Sinan Altug, these efforts have resulted in improved margins and a more than doubling of underlying operating earnings.

Strategic Focus and Future Outlook

Altug emphasized that the restructuring initiatives undertaken over the past two years are yielding tangible results. Rakon’s operation in India has shifted its focus to volume production, while the facility in France is concentrating on the aerospace and defense sectors. As Altug noted, “This shift continues to free New Zealand to focus on innovation and new product introductions while India scales to meet global demand.”

The company anticipates further improvements in margins during the second half of the financial year as production continues to scale up. Rakon has maintained its full-year underlying profit guidance for 2026, projecting earnings between $15 million and $25 million. The company noted that earnings typically skew towards the latter half of its financial year.

Looking ahead, Rakon is targeting a revenue of $250 million and an underlying profit of $75 million by 2030. These ambitious goals underscore the company’s commitment to growth and innovation in the rapidly evolving technology landscape.

Rakon’s recent performance comes in the wake of a boardroom tussle that occurred in August, when a dominant shareholder sought to replace the majority of the board of directors. This led to the suspension of Rakon’s stock on the Stock Exchange until it complied with regulations regarding independent directors.

As Rakon navigates the challenges and opportunities ahead, its recent results reflect a positive trajectory, signaling the company’s potential for sustained growth in the coming years.