The revenue jump was tied to a rebound in the largest market for Rakon’s frequency control crystals: telecommunications infrastructure, where upgrades have been delayed with the global economic slowdown. Telco revenue rose 49% to $25.0m.

Rakon said there had been 50% growth in its “AI and data centre” segment of telecommunications (its frequency control technology helps data centres stay in sync via telco networks), but it did not break out a figure.

Aerospace and defence was another standard out, with 20% year-on-year growth to $20.1m.

There was now a “record” advance order book of $75m for the sector. Rakon would expand its facility in France to address the backlog, which aerospace and defence managing director Chloé Gautrin said was tied to the “fast-growing demand for Rakon’s cutting-edge products”. That demand was “driven to a significant extent by the rapid expansion of commercial low-earth-orbit satellite constellations and government space and defence programmes”.

Gross margin improved 11 points to 48.8%, which Rakon said was driven by “scale, mix and India cost efficiencies”.

“India production is now in full volume for transferred product lines, already delivering approximately $2m of margin uplift from the first 25% of the planned NZ-to-India transfer,” Rakon said in a statement to the NZX.

“As around 80% of total production migrates over the next three quarters, these benefits are expected to expand substantially, underpinning Rakon’s long-term margin and capacity strategy.”

Last November, after revealing it had laid off 22% of its workforce, Rakon announced a plan “to accelerate the transfer of high-priority space and telco products from France and New Zealand into the new Indian facility” – a reference to its facility in Bengaluru.

Today, Rakon said it had received a $3.5m grant from an Indian Government scheme to expand its operations in that country.

In May, Rakon said it made 15 to 20% of its revenue from US sales.

Its market announcement and an investor presentation today made no reference to Trump administration tariffs.

Eventful half-year

An eventful half-year for Rakon saw it drop an unnamed Chinese telecommunications infrastructure customer, which accounted for about 5% of its revenue.

That move followed the unnamed party – reportedly Nasdaq-listed semiconductor manufacturer Skyworks – withdrawing a $1.70 per share ($390m) non-binding, indicative takeover offer on concerns about Rakon’s compliance with US technology export controls.

In November, Brett Robinson, a member of Rakon’s founding family, was named the new head of Rakon’s board, replacing the retiring Lorraine Witten.

In July, independent director and former IBM executive Mark Bregman was named chairman-elect by the board.

Bregman initially tried to fight off a challenge from Robinson, but withdrew after Robinson said he had gained the backing of major shareholders, including Siward Crystal Technology.

The NZX’s compliance unit, NZRegCo, said it had noted a 9% spike in Rakon’s shares on Tuesday and a 12% jump on Wednesday to 86c, but was not initiating a price inquiry.

NZRegCo said it would review trading in the days leading up to Rakon’s half-year result as part of its standard operating procedure for any NZX-listed company’s earnings report.

If the review identified anomalous trading, it would refer that to the Financial Markets Authority (FMA) for further investigation, “given its statutory mandate in relation to trading that may constitute market misconduct”. Separately, in August, the FMA confirmed it was investigating trading in Rakon shares.

Rakon shares closed yesterday at 84c. The stock is up 40% for the year, which is still some distance from the $2.22 it hit in early 2022 during the pandemic tech boom, or its all-time high of $5.60.

Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.