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Rakon downgrades guidance as inventory and 5G issues linger

Telco and Positioning segments suffer but products for Space & Defence and AI industries find favour.

Rakon's headquarters and production facility is at Mount Wellington in Auckland.

Will Mace Thu, 23 Nov 2023
Key points
  • Revenue: Down 30% to $61.3m
  • Profit: Down 97% to $500,000. 
  • Main takeaway: Telco customers still burning through existing inventory as 5G roll-out slows, but Space & Defence sector grows.

Rakon has downgraded its full-year underlying earnings guidance after the ‘inventory correction’ that it has referred to for several periods continues to bite, while global telecommunications operators also defer parts of their 5G roll-out.

The NZX-listed oscillator manufacturer said underlying

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Key points
  • Revenue: Down 30% to $61.3m
  • Profit: Down 97% to $500,000. 
  • Main takeaway: Telco customers still burning through existing inventory as 5G roll-out slows, but Space & Defence sector grows.
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Rakon downgrades guidance as inventory and 5G issues linger
Investment,
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