Chief Executive Sinan Altug. Photo: Supplied / Rakon
Chip maker Rakon slashed its half-year loss on the back of increased revenue.
Key numbers for half year ended in September compared with a year ago:
- Net loss $2.95m vs $10.4m loss
- Revenue $54.2m vs $41.7m
- Operating loss $4.1m vs $15.8m loss
- No dividend.
Rakon said the first half year marked a clear return to growth for Rakon as it posted growth in sales of its specialist systems for satellites, telecommunications, and computers.
It said it increased market share in core segments, increased capacity globally, and benefited from cost cutting at its New Zealand, India and France operations.
Chief Executive Sinan Altug said the company was recovering with a 30 percent rise in revenue, and increase in its margins and underlying operating earnings, which more than doubled.
He said the restructuring of the past two years were delivering tangible results, with its India operation focusing on volume production and its France facility focusing on aerospace and defence.
"This shift continues to free New Zealand to focus on innovation and new product introductions while India scales to meet global demand."
It expects margins to improve in the second half year as production scales up.
Rakon maintained its 2026 full year underlying profit guidance at between $15 to $25 million, saying earnings were typically skewed towards the second half of its financial year.
The company is targeting revenue of $250 million and an underlying profit of $75 million by 2030.
The company went through a boardroom tussle in August as a dominant shareholder moved to replace most directors, causing the Stock Exchange to suspend the stock until it complied with rules about the number of independent directors.
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