Chip maker Rakon has made a full year loss. Photo: 123RF
Chip maker Rakon has made a full year loss on the back of restructuring costs and axing a Chinese customer which along with a slow market cut revenue.
KEY NUMBERS FOR THE YEAR ENDED MARCH 2025 COMPARED WITH A YEAR AGO:
- Net loss $5.8m vs profit $4.25m
- Revenue $104m vs $128m
- Operating earnings $9.5m vs $13.4m
- No dividend.
The company, which makes specialist systems for satellites, telecommunications, and computing companies, said the past year had been one of its most demanding on record.
It said the first half of the year had been a struggle because of changing geo-political policies and commercial headwinds, but there had been a rebound in the second half.
It restructured its business as it looked for growth in the aerospace and defence sectors, and terminated business with a Chinese customer after the US administration changed trade policies and targeted China with hefty tariffs.
The restructuring cost $3.6m and the Chinese business accounted for five percent of its annual revenue.
Chief executive Sinan Altug said business was recovering in its basic telecommunications division, but it was looking to stronger growth growth in new areas.
"Our Space business is growing at record pace, and our AI & Cloud Computing Infrastructure products are already being included in next-generation designs and securing orders."
He said the coming year should see a meaningful revenue from the new divisions.
The company makes much of its hardware in India but said it did not have any material impact from US tariffs this year.
The company did not offer any earnings guidance for the new year, and did not declare a dividend as it looked to save cash.
A prospective $391m take-over offer from an unnamed buyer was scrapped last year when the two parties could not resolve differences.
