RAK-Rakon

[LoungeLizard]

Nice to finally get a return this week after many years. Took the DRP as see it as good buying.  Holding out for a big pay day.

You've got RAK and I've got PEB. Let's see who ends up drinking the wine and who ends up picking the grapes..

[Left Field]

Nice to see RAK getting some love on the leader board today on news that it has a new chip targeting the trendy AI market.

https://www.nzx.com/announcements/420756

"The launch of Niku™ as the first product in our AI computing product portfolio is an exciting first step towards AI computing becoming a brand new core market for Rakon. We expect to introduce more of our next-generation products in the coming year which will add to this AI portfolio."

According to a report by Bloomberg Intelligence the generative AI market is poised to grow to US$1.3 trillion over the next 10 years from a market size of just $40 billion in 2022.

Research firm, Data Bridge Market Research, projects spending in the global AI infrastructure market—including data centres, networks and other hardware —to reach US$422.55 billion by 2029, growing at a compound annual rate of 44% over the next six years.

Also hardly noticed on this site was the quiet departure of the current CFO after 12yrs and the very quick appointment of a new CFO ...... https://www.rakon.com/news/rakon-pleased-to-welcome-drew-davies-as-new-cfo

[BlackPeter]

Nice to finally get a return this week after many years. Took the DRP as see it as good buying.  Holding out for a big pay day.

Good luck, but lets face it - history is not on your side.

[Shareguy]

Good luck, but lets face it - history is not on your side.

Agree holding on may not of been the best move.  But hey its free carry apart from DRP that I took up, which has probably clouded things.  Still hopeful that a big pay day is coming but yes history is not on my side. 

[Shareguy]

Mike Daniel's increases holding.

https://www.nzx.com/announcements/420970

[Left Field]

Ouch..... not a good result.

https://www.nzx.com/announcements/422203

Financial Highlights (should be lowlights...)
• Revenue of $61.3 million (HY23: $87.2 million) reflects industry-wide challenges and the completion of one-off chip shortage contracts
• Telecommunications revenue down $13.4 million to $34.2 million and Positioning revenue down $9.2 million to $7.2 million, reflecting anticipated normalisation of customer inventory levels. Space and Defence recorded its highest revenue to date of $15.3 million, up 24% from HY23
• Gross margin of 42.7% (HY23: 49.9%) reflects non-recurring costs associated with workforce restructuring and lower production due to the move to the new India facility
• Operating expenses were relatively flat at $28.8 million (HY23: $28.4 million) reflecting both increased investment for future growth and inflationary pressures, and the offsetting effect of Rakon's focus on efficiency initiatives to improve long-term competitiveness
• Underlying EBITDA1 of $5.3 million (HY23: $28.1 million) reflects the fall in revenue, non-recurring costs and sustained investment for growth


.......... plus... a downgrade!!?? (....hard to understand RAK speak)

Overall, HY24 Underlying EBITDA1 performed in line with the July market update. However, market dynamics continue to evolve and following further dialogue with customers, and a number of recent peer and customer announcements, Rakon now believes the risk to FY24 guidance is higher than the $10 million (implied FY24 Underlying EBITDA1 of $16 million to $24 million) indicated to the market in July.

[LoungeLizard]

Terrible result - no other way of looking at it. There's always a complete disconnect between the awful financials and Rakons self-serving narrative about future growth. No talk of a dividend so normal service has been resumed. 

[Left Field]

Yikes..... not much interest in the buy side.... Could well slip below 60c. Ouch for holders.

Don't hold but morbid fascination has me watching this one.

[Shareguy]

Worse than expected result. 30 percent fall in revenue from 1H23. Margin fall from 50 percent to 42.6 percent.

Ebitda down 81 percent.

Net cash at $13m is good.

Very disappointing.  Oh what to do....

[LoungeLizard]

RAK in trading halt. I hope for holders it's a takeover and not another cap raise "to fund growth."

[Left Field]

Maybe  an acquisition by Rakon (with an associated cap raise.)

[LoungeLizard]

Maybe  an acquisition by Rakon (with an associated cap raise.)

Yes, could be, given this comment from their last set of results:

"Rakon continues to evaluate and consider acquisition opportunities to expand into the US market."

If I was a holder, I'd be despairing on news of an acquisition, as the SP will slip further and RAK will inevitably return to it's "no dividend" policy.

[Left Field]

RAK has  a sad track record with long suffering shareholders.

Can a leopard change its spots?

We will see tomorrow. 

[Shareguy]

Yes had to be released, when large shareholders are contacted to see if they would accept.

Nice Xmas present.

https://www.nzx.com/announcements/423277

[Left Field]

A takeover. Good price too.....$1.70.  At last some good news for holders!!