Rakon releases lower FY25 guidance, cites slow recovery

Frequency control and timing solutions manufacturer Rakon has released its full-year guidance for FY25.

The company expects underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) to be in the range of $5 million to $15m for the financial year ending in March 2025.

This is a decrease from FY24's underlying EBITDA of $13.5m.

Rakon attributed the lower guidance to the slow recovery in the telecommunications and positioning segments despite positive market indications in telecommunications.

However, it expects product orders in the telecommunications segment to improve in the third and fourth quarters of FY25.

Rakon also highlighted the growth potential of its space and AI computing hardware segments, with the latter anticipated to rival the current telecommunications segment revenues in the next five years.

The company said it has maintained a near 100% design win rate and has been focusing on cost-cutting and driving efficiencies.

It is also in the process of transferring select product lines to its new India facility.