Rakon Update of FY2021 Earnings Guidance

Rakon Limited
T +64 9 573 5554, F +64 9 573 5559
8 Sylvia Park Road, Mt Wellington, Auckland 1060, New Zealand
Private Bag 99943, Newmarket, Auckland 1149, New Zealand
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18 January 2020


RAK Update of FY2021 Earnings Guidance
The Rakon Board of Directors is pleased to provide an update to the market on its earnings guidance
for the year ending 31 March 2021 (FY2021).
Rakon expects to achieve Underlying EBITDA
1
of between $20 million and $22 million. This compares
to Underlying EBITDA
1
of $14.8 million reported for the prior period and is an update of our previous
guidance for FY2021 of $16 million to $18 million.
This new guidance follows Rakon’s financial performance to 31 December 2020 and updated view of
demand forecast, firm orders and expected expenditure for the balance of FY2021. Demand from the
Telecommunications sector has been higher than expected. Globally, the roll-out of 5G networks is
continuing, resulting in greater demand for Rakon products. There is also greater demand for Rakon
products for synchronising datacentres and enhancing optical communications reflecting growth in
global data volumes and cloud-based applications.
The October 2020 fire at Asahei Kasei Microdevices (AKM) in Japan, the world’s largest semiconductor
manufacturer of TCXO Integrated Circuits (IC), created a world-wide shortage of TCXOs which are used
in a wide variety of applications. Rakon is meeting some of this shortfall due to its good inventory
levels, agile manufacturing operations and its proprietary TCXO IC, resulting in higher revenue forecast
for Q4 FY2021.
Factors under-pinning Rakon’s good performance are expected to continue, particularly 5G
deployment. This guidance is dependent on the management of usual supply chain and operational
risks as well as risks arising from the ongoing COVID-19 pandemic and geopolitical issues for Rakon’s
operations and those of its customers and suppliers.
-Ends-

Contact:
Anand Rambhai
Chief Financial Officer
+64 9 571 9225


1
Refer to Note 4 of the 2020 audited consolidated financial statements for an explanation of how ‘Non-GAAP Financial Information’ is used,
including a definition of ‘Underlying EBITDA’ and reconciliation to NPAT.

About Rakon
Rakon is a global high technology company and a world leader in its field. The company designs and
manufactures advanced frequency control and timing solutions. Its three core markets are
Telecommunications, Global Positioning and Space and Defence. Rakon products are found at the
forefront of communications where speed and reliability are paramount. The company’s products
create extremely accurate electric signals which are used to generate radio waves and synchronise

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time in the most demanding communication applications. Rakon has three manufacturing plants, and
has six research and development centres. Customer support personnel are located in sixteen offices
worldwide. Rakon is proud of its New Zealand heritage; it was founded in Auckland in 1967. It is a
public company listed on the New Zealand stock exchange, NZX, ticker code RAK.
www.rakon.com