Rakon expects revenues from its new range of AI components to offset weaker activity in the global telecommunications sector.

Auckland-based Rakon, a manufacturer of frequency control and timing technologies, today released its full-year guidance, telling shareholders that it expects adjusted EBITDA in the range of $5 million to $15 million for the year to 31 March 2025, compared to $13.5 million in 2024.

“This reflects growth in the space and AI computing hardware sectors, offset by a slow recovery in the telecommunications sector and positioning, although positive market indicators are currently evident in the telecommunications sector,” the company said.

The first half of 2025 remained challenging for the telecommunications and positioning segments as customers coped with the more difficult macroeconomic conditions and reduced their inventories.

Although there has been a decline in orders and sales in the first half of the year, an improvement was expected, with the market possibly stabilising in the second half of the year.

Rakon said its new AI computer hardware products, called MercuryX, are already generating sales and strong customer interest from some of the largest global computer hardware companies.