Rakon upgrades earnings guidance

12 November 2021 Rakon upgrades earnings guidance Rakon (NZX: RAK), a world leader in the provision of advanced frequency control and timing solutions, today announces a further upgrade to its earnings guidance for the year ending 31 March 2022 (FY2022). Rakon now expects to achieve Underlying EBITDA of $44 million to $49 million in FY2022. This is an upgrade to the earlier guidance of $39 million to $44 million provided on 29 September 2021. Managing Director Brent Robinson said the increase in Rakon's FY2022 expected revenue and earnings reflects the certainty of two additional months of good performance, a strong order book for the remainder of FY2022 and some narrowing of the supply chain risk window affecting the availability of materials and parts. Mr Robinson said Rakon was able to work through the considerable uncertainties regarding manufacturing capacity, procurement of raw materials and parts, adapting design specifications and other resource requirements it faced in the first half and has delivered greater than expected volumes of higher margin product in September and October. For the remaining period, we have an increased level of orders from Tier One telecommunications customers for Rakon products for 5G network equipment and continued delivery against the significant long term orders previously secured due to the world-wide chip shortage. However, the prevailing supply volatility and cost pressures facing the global electronics industry mean there is still significant risk in securing raw materials and parts to meet orders. These challenges are requiring management on a month-to-month basis. The business is expected to perform well through FY2022 provided Rakon is able to manage the supply chain risks and maintain capacity and avoid COVID-19 related disruptions at its manufacturing sites. Rakon will provide its financial results for the half year ended 30 September 2021 on Thursday 25 November 2021. Investor contact: Brent Robinson Managing Director +64 9 573 5554 Anand Rambhai Chief Financial Officer +64 9 571 9225 Media Contact Richard Inder the Project +64 21 645 643 End CA:00382746 For:RAK Type:MKTUPDTE Time:2021-11-12 08:57:06