Rakon says it's heading towards second-best ever profit

Rakon expects to report strong earnings in 2023. Photo / File

Electronic components maker Rakon says it's on track for its second-best ever operating profit.

Rakon specialises in frequency control and timing solutions and expects underlying ebitda to range from $36 million to $44 million.

"Even at the bottom of this range, the result would represent the second-best ever reported by the company," it said of expectations for the year to March 2023.

Rakon said the guidance ahead of its annual meeting today was consistent with market expectations.

The result would compare to the record $54.4m underlying ebitda achieved in the 2022 financial year, a result lifted by short-term opportunities created by a global chip shortage after a fire at one of the world's largest chip manufacturers.

Chief executive Sinan Altug said the current financial year is an "inflection point" for the company.

"Core business is growing, and we are accelerating investment for the future where we see significant opportunities," he said.

"These investments, the transition to the new Bengaluru, India facility and inflation pressures will moderate underlying ebitda in the current year."

Altug said the final outcome for the year is subject to uncertainties including the global economic outlook and its impact on global demand, the ongoing raw materials and supply chain challenges and the execution of the transition to the new facility in India.

Rakon's net profit for the March 2022 year came to $33.1m, up from $9.6m in the previous year.

The company's shares last traded at $1.57, having gained 68 per cent over the last 12 months.