New Risk • May 12
New major risk - Revenue and earnings growth Earnings have declined by 37% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 37% per year over the past 5 years. Minor Risk Significant insider selling over the past 3 months (NZ$2.4m sold). New Risk • Mar 13
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: NZ$2.4m This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (15% average weekly change). Minor Risk Significant insider selling over the past 3 months (NZ$2.4m sold). Announcement • Jan 13
Bourns, Inc. proposed to acquire Rakon Limited (NZSE:RAK) from Siward Crystal Technology Co., Ltd (TWSE:2484), Wairahi Investments Limited and others for approximately NZD 350 million. Bourns, Inc. proposed to acquire Rakon Limited (NZSE:RAK) from Siward Crystal Technology Co., Ltd (TWSE:2484), Wairahi Investments Limited and others for approximately NZD 350 million on January 11, 2026. A cash consideration valued at NZD 1.55 per share will be paid by Bourns, Inc. As part of consideration, an undisclosed value is paid towards common equity and an undisclosed value is paid towards rights of Rakon Limited.
The transaction is subject to approval by the Overseas Investment Act 2005, the French Monetary and Financial Code, the UK National Security and Investment Act 2021 and Bourns receiving acceptances holding or controlling 90% or more of the voting rights in Rakon. An Independent Committee (IC) of the Rakon Board, comprising Independent Directors Chris Swasbrook and Greg Barclay, has been established to manage engagement with Bourns and respond to the Notice. Shareholders are advised to take no action until they have received and considered the formal offer documentation from Bourns and Rakon’s Target Company Statement, including the Independent Adviser’s Report.
Calibre Partners acted as financial advisor for Rakon Limited. Bell Gully acted as legal advisor for Rakon Limited. Board Change • Dec 18
High number of new and inexperienced directors There are 4 new directors who have joined the board in the last 3 years. The company's board is composed of: 4 new directors. No experienced directors. 1 highly experienced director. Chairman & Non-independent Director Brent Robinson is the most experienced director on the board, commencing their role in 1991. The company’s lack of experienced directors is considered a risk according to the Simply Wall St Risk Model. New Risk • Dec 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of New Zealander stocks, typically moving 5.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Reported Earnings • Nov 29
First half 2026 earnings released: NZ$0.013 loss per share (vs NZ$0.046 loss in 1H 2025) First half 2026 results: NZ$0.013 loss per share (improved from NZ$0.046 loss in 1H 2025). Revenue: NZ$54.2m (up 30% from 1H 2025). Net loss: NZ$2.95m (loss narrowed 72% from 1H 2025). Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Electronic industry in Oceania. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 102 percentage points per year, which is a significant difference in performance. New Risk • Nov 05
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: NZ$173.1m (US$97.8m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. This is currently the only risk that has been identified for the company. Announcement • Nov 05
Rakon Limited to Report First Half, 2026 Results on Nov 28, 2025 Rakon Limited announced that they will report first half, 2026 results on Nov 28, 2025 Announcement • Aug 22
Rakon Limited Announces Board Changes Rakon Limited announced that as previously announced resolutions 1, 2 and 3 were not put to the meeting following the decisions of Dr. Bregman, Dr. Lisbeth Jacobs and Jon Raby not to stand for election at the meeting. Announcement • Jun 11
Rakon Limited, Annual General Meeting, Aug 22, 2025 Rakon Limited, Annual General Meeting, Aug 22, 2025. Reported Earnings • May 29
Full year 2025 earnings released: NZ$0.026 loss per share (vs NZ$0.02 profit in FY 2024) Full year 2025 results: NZ$0.026 loss per share (down from NZ$0.02 profit in FY 2024). Revenue: NZ$103.7m (down 19% from FY 2024). Net loss: NZ$5.85m (down 230% from profit in FY 2024). Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Electronic industry in Oceania. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 73 percentage points per year, which is a significant difference in performance. Announcement • May 14
Rakon Limited to Report Fiscal Year 2025 Results on May 28, 2025 Rakon Limited announced that they will report fiscal year 2025 results on May 28, 2025 New Risk • Apr 28
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of New Zealander stocks, typically moving 7.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (7.5% average weekly change). Market cap is less than US$100m (NZ$111.6m market cap, or US$66.4m). Buy Or Sell Opportunity • Apr 02
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 16% to NZ$0.51. The fair value is estimated to be NZ$0.64, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 12% over the last 3 years. Meanwhile, the company became loss making. Announcement • Jan 08
Rakon Limited SHS to Be Deleted from OTC Equity Rakon Limited SHS (New Zealand) will be deleted from OTC Equity effective January 07, 2025, due to Inactive Security. Reported Earnings • Nov 30
First half 2025 earnings released: NZ$0.046 loss per share (vs NZ$0.002 profit in 1H 2024) First half 2025 results: NZ$0.046 loss per share (down from NZ$0.002 profit in 1H 2024). Revenue: NZ$41.7m (down 32% from 1H 2024). Net loss: NZ$10.4m (down NZ$10.9m from profit in 1H 2024). Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Electronic industry in Oceania. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 40 percentage points per year, which is a significant difference in performance. Announcement • Nov 01
Rakon Limited to Report First Half, 2025 Results on Nov 27, 2024 Rakon Limited announced that they will report first half, 2025 results on Nov 27, 2024 New Risk • Sep 17
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: NZ$159.4m (US$98.8m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (8.0% average weekly change). Profit margins are more than 30% lower than last year (3.5% net profit margin). Market cap is less than US$100m (NZ$159.4m market cap, or US$98.8m). Announcement • Aug 28
Rakon Limited Announces Board and Committee Changes Rakon Limited's Chair, Lorraine Witten will temporarily chair the Board committee until the company appoint a new Director. The vacancies have come about through the retirements of Steve Tucker (in March) and Sinead Horgan (in August). During on the Board, Sinead chaired Audit and Risk committee and also chaired the Independent Committee, which considered the takeover offer. Announcement • Jul 31
Rakon Limited, Annual General Meeting, Aug 28, 2024 Rakon Limited, Annual General Meeting, Aug 28, 2024. Location: great northern room, ellerslie event centre, ellerslie racecourse, 80 ascot avenue ,remuera, auckland New Zealand Reported Earnings • May 29
Full year 2024 earnings released: EPS: NZ$0.02 (vs NZ$0.10 in FY 2023) Full year 2024 results: EPS: NZ$0.02 (down from NZ$0.10 in FY 2023). Revenue: NZ$128.0m (down 29% from FY 2023). Net income: NZ$4.52m (down 81% from FY 2023). Profit margin: 3.5% (down from 13% in FY 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 19% p.a. on average during the next 2 years, compared to a 17% growth forecast for the Electronic industry in Oceania. Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Announcement • Jan 25
Rakon Limited Announces the Launch of Its Next Generation Mercuryx Product Range for Ai and Cloud Data Centres, and Next-Generation Telecom Networks Rakon Limited announced the launch of its next generation MercuryX™? product range for AI and cloud data centres, and next-generation telecom networks. The MercuryX Integrated Circuit - Oven Controlled Crystal Oscillator (IC-OCXO) product range combines Rakon's in-house designed Mercury+™? semiconductor chip with the company's XMEMS®?1 quartz crystal resonators. This fusion of proprietary Rakon technologies is setting new industry benchmarks for unparalleled performance in an ultra-compact design and enables market leading products in the smallest possible package. The launch of the MercuryX product range expands Rakon's AI computing hardware product portfolio. The ultra-high stability and performance characteristics of MercuryX IC-OCXOs make them an excellent fit to deliver the precise timing and synchronisation required by data centres to meet the additional demands created by AI workloads. The growth of Rakon's AI computing hardware products portfolio caters to an emerging core market for the company. Rakon continues to work closely with leading players in AI computing hardware to enable the next generation platforms, and is projecting tangible substantial benefits, in terms of design wins, collaborations, and potential revenue growth, within the next 12-15 months. In addition to AI computing, Rakon's MercuryX based products are designed to meet the needs of other demanding applications such as 5G, 5G Advanced and 6G telecommunications networks, and are also well suited to satellite terminal and instrumentation applications. The MercuryX product range is a direct result of Rakon's focused investments into strategic initiatives that fuel innovation and enhance the company's competitive edge. Initial samples of MercuryX products have already generated high interest from Rakon's tier 1 customers. The development of its own in-house resonator and chip technology allows Rakon to control its product roadmap, creating market-leading products like MercuryX that are independently manufactured in its factories in New Zealand and India, providing customers with high security of supply. Rakon is on track to release its next IC-OCXO product range towards the end of the year - incorporating a new in-house designed semiconductor chip, VulcanTM with its leading XMEMS®? technology. Valuation Update With 7 Day Price Move • Dec 11
Investor sentiment improves as stock rises 97% After last week's 97% share price gain to NZ$1.20, the stock trades at a forward P/E ratio of 34x. Average forward P/E is 20x in the Electronic industry in Oceania. Total returns to shareholders of 131% over the past three years. Reported Earnings • Nov 27
First half 2024 earnings released: EPS: NZ$0.002 (vs NZ$0.071 in 1H 2023) First half 2024 results: EPS: NZ$0.002 (down from NZ$0.071 in 1H 2023). Revenue: NZ$61.3m (down 30% from 1H 2023). Net income: NZ$499.0k (down 97% from 1H 2023). Profit margin: 0.8% (down from 18% in 1H 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Electronic industry in Oceania. Over the last 3 years on average, earnings per share has increased by 15% per year whereas the company’s share price has increased by 12% per year. Announcement • Oct 21
Rakon Limited Announces Resignation of Anand Rambhai as Chief Financial Officer, Effective Until 22 December 2023 Rakon Limited advises that, after close to 12 years with the company, its Chief Financial Officer, Anand Rambhai, has given notice of his resignation to pursue other opportunities. Mr. Rambhai will be stepping down from the role of Chief Financial Officer with immediate effect, but will continue to support the business until 22 December 2023. This will include supporting the transition of Rakon's finance function to its new Chief Financial Officer. Announcement • Oct 20
Rakon Limited Appoints Drew Davies as Chief Financial Officer, Effective 24 October 2023 Rakon Limited announced that Drew Davies will join the company as its Chief Financial Officer (CFO), effective 24 October 2023. Mr. Davies has previously held CFO roles, board directorships, and executive leadership roles during his 30-year career in the United States of America and New Zealand. Most recently, Mr. Davies served as the CFO of 2degrees, a mobile and fixed full-service Telecommunications company in New Zealand until the company's sale to two Australian Superfunds in 2022. He led a number of transformational projects including the IPO process for listing on the Australia and New Zealand Stock Exchanges. In the United States, he served as the CFO and Executive Vice President of Corporate Development for Trilogy International Partners, a multinational Mobile Telecommunications company doing business in the United States with operations in New Zealand, the Caribbean and South America. During his nine-year tenure with Trilogy, he conducted numerous High Yield Debt and Equity transactions globally, and also served as a Director and Board member for a number of Trilogy companies. Prior to his appointment at Trilogy, Mr. Davies held a number of senior financial and operational roles with T-Mobile US Incorporated, along with other mobile telecommunications companies in the United States. Announcement • Aug 18
Rakon Limited to Report Fiscal Year 2024 Results on May 23, 2024 Rakon Limited announced that they will report fiscal year 2024 results on May 23, 2024 New Risk • Aug 15
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: NZ$164.0m (US$98.1m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (24% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (5.7% average weekly change). Profit margins are more than 30% lower than last year (13% net profit margin). Market cap is less than US$100m (NZ$164.0m market cap, or US$98.1m). Announcement • Jul 14
Rakon Limited to Report First Half, 2024 Results on Nov 23, 2023 Rakon Limited announced that they will report first half, 2024 results on Nov 23, 2023 Announcement • Jun 15
Rakon Limited, Annual General Meeting, Aug 16, 2023 Rakon Limited, Annual General Meeting, Aug 16, 2023. Announcement • May 25
Rakon Limited Declares Dividend for the Fiscal Year 2023, Payable on 8 August 2023 Rakon Limited announced that the Board confirmed that Rakon will commence dividend distributions. The Board is declaring a fiscal year 2023 fully imputed dividend of 1.5 cents per share, with a record date of 24 July 2023 and payment date of 8 August 2023. The payment date of this dividend has been set to allow time for the introduction of a Dividend Reinvestment Plan. Reported Earnings • May 24
Full year 2023 earnings: EPS and revenues exceed analyst expectations Full year 2023 results: EPS: NZ$0.10 (down from NZ$0.15 in FY 2022). Revenue: NZ$180.3m (up 4.9% from FY 2022). Net income: NZ$23.2m (down 30% from FY 2022). Profit margin: 13% (down from 19% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.1%. Earnings per share (EPS) also surpassed analyst estimates by 18%. Revenue is forecast to grow 5.7% p.a. on average during the next 2 years, compared to a 16% growth forecast for the Electronic industry in Oceania. Over the last 3 years on average, earnings per share has increased by 51% per year but the company’s share price has increased by 61% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Nov 26
First half 2023 earnings released: EPS: NZ$0.071 (vs NZ$0.083 in 1H 2022) First half 2023 results: EPS: NZ$0.071 (down from NZ$0.083 in 1H 2022). Revenue: NZ$87.2m (up 2.0% from 1H 2022). Net income: NZ$16.0m (down 15% from 1H 2022). Profit margin: 18% (down from 22% in 1H 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Electronic industry in Oceania. Over the last 3 years on average, earnings per share has increased by 75% per year but the company’s share price has only increased by 63% per year, which means it is significantly lagging earnings growth. Announcement • Oct 31
Rakon Limited to Report First Half, 2023 Results on Nov 24, 2022 Rakon Limited announced that they will report first half, 2023 results on Nov 24, 2022 Valuation Update With 7 Day Price Move • Jun 14
Investor sentiment deteriorated over the past week After last week's 15% share price decline to NZ$1.27, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 15x in the Electronic industry globally. Total returns to shareholders of 370% over the past three years. Announcement • Jun 10
Rakon Limited, Annual General Meeting, Aug 11, 2022 Rakon Limited, Annual General Meeting, Aug 11, 2022. Board Change • May 29
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Director Keith Watson was the last independent director to join the board, commencing their role in 2018. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • May 27
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: NZ$0.15 (up from NZ$0.042 in FY 2021). Revenue: NZ$172.0m (up 34% from FY 2021). Net income: NZ$33.1m (up 244% from FY 2021). Profit margin: 19% (up from 7.5% in FY 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) also missed analyst estimates by 4.0%. Over the next year, revenue is forecast to grow 1.7%, compared to a 107% growth forecast for the industry in New Zealand. Over the last 3 years on average, earnings per share has increased by 85% per year but the company’s share price has only increased by 76% per year, which means it is significantly lagging earnings growth. Announcement • Feb 10
Rakon Limited to Report Fiscal Year 2022 Results on May 26, 2022 Rakon Limited announced that they will report fiscal year 2022 results on May 26, 2022 Board Change • Nov 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 1 highly experienced director. Independent Director Keith Watson was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • Oct 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 1 highly experienced director. Independent Director Keith Watson was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improved over the past week After last week's 20% share price gain to NZ$1.37, the stock trades at a trailing P/E ratio of 32.3x. Average trailing P/E is 27x in the Electronic industry in Oceania. Total returns to shareholders of 357% over the past three years. Valuation Update With 7 Day Price Move • Sep 07
Investor sentiment improved over the past week After last week's 19% share price gain to NZ$1.15, the stock trades at a trailing P/E ratio of 27.1x. Average trailing P/E is 27x in the Electronic industry in Oceania. Total returns to shareholders of 342% over the past three years. Reported Earnings • May 29
Full year 2021 earnings released: EPS NZ$0.042 (vs NZ$0.018 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: NZ$128.3m (up 7.8% from FY 2020). Net income: NZ$9.64m (up 142% from FY 2020). Profit margin: 7.5% (up from 3.3% in FY 2020). Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has increased by 62% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Feb 13
New 90-day high: NZ$0.84 The company is up 115% from its price of NZ$0.39 on 13 November 2020. The New Zealander market is up 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electronic industry, which is up 19% over the same period. Is New 90 Day High Low • Jan 05
New 90-day high: NZ$0.60 The company is up 56% from its price of NZ$0.39 on 07 October 2020. The New Zealander market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electronic industry, which is up 13% over the same period. Is New 90 Day High Low • Nov 30
New 90-day high: NZ$0.43 The company is up 12% from its price of NZ$0.39 on 01 September 2020. The New Zealander market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electronic industry, which is up 9.0% over the same period. Reported Earnings • Nov 22
First half 2021 earnings released: EPS NZ$0.02 The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: NZ$59.5m (up 4.6% from 1H 2020). Net income: NZ$4.64m (up 246% from 1H 2020). Profit margin: 7.8% (up from 2.4% in 1H 2020). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 15% per year whereas the company’s share price has increased by 20% per year. Announcement • Nov 10
Rakon Limited to Report First Half, 2021 Results on Nov 19, 2020 Rakon Limited announced that they will report first half, 2021 results on Nov 19, 2020 Is New 90 Day High Low • Oct 01
New 90-day high: NZ$0.41 The company is up 55% from its price of NZ$0.27 on 03 July 2020. The New Zealander market is up 3.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electronic industry, which is up 26% over the same period.