RAK Rakon

[Sideshow Bob]

Full Year results:
https://www.nzx.com/announcements/411943
I'm glad to see they've announced a maiden dividend, will be positive for the share price.

Di...
Div....
Divi.....

What's a Rakon dividend??

That must be 17 years since listing to pay its maiden divvy??

Good things take time as they say....

[moimoi]

Quite remarkable lack of input from those that have been harping for a dividend for years..

Now there is one...silence.

Fantastic effort to complete the Bengaluru manufacturing facility on time and on budget.

[SPC]

Ok me here. I liquidated recently (and walked away in the black) reinvested the proceeds into other holdings with proven track records. I haven't looked actually as I don't look back.
But I noticed that forward look is the typical ' we're in for a tougher year next year story with reduced expectations.' so imo to prevent the SP from probably tanking completely the BoD decided to throw a few crumbs on the table to arrest the slide.
Any thoughts?

[Walter]

Glad that they have a div reinvestment scheme.

[Mel]

Ok me here. I liquidated recently (and walked away in the black) reinvested the proceeds into other holdings with proven track records. I haven't looked actually as I don't look back.
But I noticed that forward look is the typical ' we're in for a tougher year next year story with reduced expectations.' so imo to prevent the SP from probably tanking completely the BoD decided to throw a few crumbs on the table to arrest the slide.
Any thoughts?

Yes, you could say it is more of the same, however,
I think the new manufacturing facility could open up some new opportunities in that region.
Whilst the dividend is immaterial, it illustrates that they can fund it and there is a passing consideration to shareholders (which has been sadly lacking in the past).
The dividend will also be positive for a (new) set of investors, who have increased confidence with a co that pays a dividend.
I am a current shareholder - and may come to regret not selling when the SP was in the $2 range around Jan-22 - which would have yielded me a tidy profit. I'll prob sell at the next 'peak', as I'm over the rollercoaster ride!

[Rawz]

https://www.nzx.com/announcements/413283

19 June 2023
On Wednesday 14 June 2023, global high-tech manufacturer Rakon (RAK) inaugurated its state of the art research and manufacturing Centre of Excellence, located in the SEZ Aerospace Park, Bengaluru (Bangalore).
Rakon is a world leader in the design and manufacture of advanced frequency control and timing products, which enable connectivity for thousands of electronic systems worldwide – from 5G networks and satellites, to autonomous vehicles and emergency beacons.
Rakon has been operating in India for over 15 years, and the new facility represents an important milestone for the company. It is one of the world's largest and most sophisticated research and manufacturing sites for advanced frequency control and timing solutions, with a total built-up area of 100,000 square feet across three levels (the building design also allows for two additional levels to be added in future).
Shri M Sankaran, Director, URSC (U R Rao Satellite Centre, India’s lead Centre for ISRO’s satellite design and development) and Graham Rouse (NZ Trade Commissioner & Consul General - India & South Asia) were present to inaugurate the new facility, which replaces Rakon’s former leased sites in Bengaluru, and both futureproofs its India operations and signals Rakon’s long-term commitment to growing its India operations.
Rakon’s long-term growth strategy includes increasing production in India to service global customers and meet product demand arising from its position as a strategic supplier, under the Indian Government’s ‘Make in India’ initiative, to key agencies and leading companies across India’s telecom, aerospace and defence industries. The long-term strategy also includes transferring some of Rakon’s product lines that are currently manufactured at sites in New Zealand and France to the new facility. As this transfer occurs the company expects to see a positive effect on margins due to lower manufacturing overheads. In line with this, Rakon has enabled future expansion for its proprietary XMEMS® resonators and nanotechnology manufacturing process within the new facility. The added capacity of the facility and production diversification will lower Rakon’s global production risk and provide additional supply chain certainty for customers.
In future, Rakon anticipates that the annual revenue from its India operations may rise from 25-35% of all revenues currently, to around 50%.
To date, Rakon has invested NZ$15m in the land, building and equipment for the Centre of Excellence and the company intends to invest a further NZ$55 million over the next 5 years. Rakon currently employs around 500 people in India and expects to employ a further 300 people over the next 5 years.
The new facility was designed in accordance with sustainable building practices regarding the use of water and energy and is expected to attain a Leadership in Energy and Environmental Design (LEED) certification.
-ends-

[Sideshow Bob]

https://www.nzx.com/announcements/414749

Rakon Limited (NZX: RAK), a high technology manufacturer of frequency control and timing solutions for the telecommunications, space and defence, and positioning sectors, has provided an update for the three months ended 30 June 2024 (Q1 FY24) and FY24 outlook. Key points are:
• Q1 FY24 performance slightly above expectations across all three core markets
• Temporary slowdown in telecoms sector represents risk to FY24 EBITDA1 guidance (up to $10 million)
• Space and defence demand outlook remains strong with healthy order book to FY25
• Initiatives underway to improve efficiency and recalibrate resources and cost structures globally
• Strategic direction on track with good progress on FY24 milestones

[winner69]

Reads like a profit downgrade …..$10m of about $30m FY24 ebitda guidance at risk

That’s pretty significant if I’ve read it right

No worries otherwise all going well but we just have to wait a bit longer for the really good times to arrive.

No mention of having any stuff on the Indian moon landing thing ….surely they would have been involved

[Rawz]

Reads like a profit downgrade …..$10m of about $30m FY24 ebitda guidance at risk

That’s pretty significant if I’ve read it right

No worries otherwise all going well but we just have to wait a bit longer for the really good times to arrive.

No mention of having any stuff on the Indian moon landing thing ….surely they would have been involved

I agree they are saying 1/3 of ebitda guidance could disappear in a puff of smoke.. crazy

[winner69]

I agree they are saying 1/3 of ebitda guidance could disappear in a puff of smoke.. crazy

But things are tracking ‘slightly above expectations’

Suppose writing market announcements is an art form