Business keeps getting better for NZX-listed GPS component maker Rakon after a major fire destroyed the plant of Japanese rival AKM.
Both manufacture temperature-compensated crystal oscillator (TCXO) integrated circuits used in wireless applications in telecommunications, IoT, GPS and numerous consumer products.
Auckland-based Rakon upgraded its outlook today, telling shareholders it expected to achieve underlying EBITDA of between NZ$27 million and NZ$32 million for the new financial year ending 31 March, 2022.
Rakon’s guidance for the same measure in the 2021 year just closed remained at $20 million to $22 million.
The guidance followed Rakon’s announcement in February that it had secured significant orders that were expected to increase revenue for the 2022 year by at least 20 per cent year-on-year and also to flow over into 2023.
"Rakon has seen increasing demand for its products which are used in a range of applications, compounded by the global shortage caused by a factory fire at the world’s largest TCXO integrated circuits manufacturer," the company said.
The shortage was expected to stabilise in the later part of the year.
Rakon said it continued to experience increasing demand from the telecommunications sector, particularly for the roll-out of 5G, and growth in all its core business sectors including for datacentre, industrial positioning, high-reliability and new space applications, under-pinning sound performance expectations.
Meeting the increased business activity and performance was, however, subject to global supply chain and operational risks as well as risks arising from the ongoing COVID-19 pandemic and geopolitical issues.