Rakon upgrades earnings guidance

Rakon Limited
T +64 9 573 5554
8 Sylvia Park Road, Mt Wellington, Auckland 1060, New Zealand
Private Bag 99943, Newmarket, Auckland 1149, New Zealand
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12 November 2021

Rakon upgrades earnings guidance
Rakon (NZX: RAK), a world leader in the provision of advanced frequency control and timing
solutions, today announces a further upgrade to its earnings guidance for the year ending 31 March
2022 (FY2022).
Rakon now expects to achieve Underlying EBITDA
1
of $44 million to $49 million in FY2022. This is an
upgrade to the guidance of $39 million to $44 million provided on 29 September 2021.
Managing Director Brent Robinson said the increase in Rakon’s FY2022 expected revenue and
earnings reflects the certainty of two additional months of good performance, a strong order book
for the remainder of FY2022 and some narrowing of the supply chain risk window affecting the
availability of materials and parts.
Mr Robinson said Rakon was able to work through the considerable uncertainties regarding
manufacturing capacity, procurement of raw materials and parts, adapting design specifications and
other resource requirements it faced in the first half and has delivered greater than expected
volumes of higher margin product in September and October.
For the remaining period, we have an increased level of orders from Tier One telecommunications
customers for Rakon products for 5G network equipment and continued delivery against the
significant long term orders previously secured due to the world-wide chip shortage. However, the
prevailing supply volatility and cost pressures facing the global electronics industry mean there is still
significant risk in securing raw materials and parts to meet orders. These challenges are requiring
management on a month-to-month basis.
The business is expected to perform well through FY2022 provided Rakon is able to manage the
supply chain risks and maintain capacity and avoid COVID-19 related disruptions at its manufacturing
sites.
Rakon will provide its financial results for the half year ended 30 September 2021 on Thursday 25
November 2021.
Investor contact: Media contact:
Brent Robinson Richard Inder
Managing Director the Project
+649 573 5554 +64 21 645 643

Anand Rambhai
Chief Financial Officer
+64 9 571 9225

1
Refer to Note 5 of the 2021 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.

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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, 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 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