Rakon Secures Record NZ$17 million Contract for Satellite Subsystems

Highlights:

• Largest Contract: Rakon secures its biggest space contract to date, valued up to NZD$17 million over three years, with significant extension potential.
• Strategic Milestone: The contract propels Rakon towards its goal of becoming a top-3 supplier for NewSpace subsystem products, enhancing its market share.
• Technological Excellence: Rakon’s Master Reference Oscillator (MRO) subsystems will provide critical timing and frequency stability for a new Low Earth Orbit (LEO) satellite constellation.

Rakon Limited (NZX: RAK), a leader in frequency control and timing solutions, has announced a landmark achievement in its space business, securing a contract valued up to NZD$17 million over three years. This contract, the largest in Rakon's history, has the potential for substantial extensions beyond the initial period. It positions the company as a premier global supplier of space subsystems.

Awarded by a prominent global communications satellite leader, the contract involves the supply of Rakon's cutting-edge Master Reference Oscillator (MRO) subsystems. These subsystems will be integral to a new Low Earth Orbit (LEO) satellite constellation, a key component of the evolving NewSpace market. Deliveries will commence in FY26, with the contract expected to generate over NZD$3 million in revenue for Rakon in FY25.

Rakon's MRO subsystems are renowned for their high accuracy and stability in frequency references and precision timing, crucial for satellite communication and synchronization. The company’s ultra-stable oscillator technology ensures industry-leading reliability and timing holdover, maintaining uninterrupted frequency stability even when GPS signals are unavailable.

Sinan Altug, Rakon’s CEO, expressed immense pride in the contract win, attributing it to Rakon’s strategic push into the fast-growing LEO constellation and commercial satellite systems markets. "We are thrilled to contribute our world-leading oscillator and space subsystem technology to this exciting new constellation with a respected industry leader," Altug stated. "This contract is a significant milestone, confirming that our strategy and investments to become a key supplier in this rapidly growing ecosystem are yielding results."

Rakon's focus on diversifying its product offerings and increasing market share has led to the highest order book ever reported for its space business at the FY24 half-year results. This contract accelerates Rakon’s trajectory towards achieving its three-year growth strategy milestone of becoming a top-3 supplier of NewSpace subsystem products. The company is on track to double its serviceable addressable market in the next five years, driven largely by the growing demand for its subsystem products.

This significant contract win underscores Rakon's leadership and innovation in the space industry, positioning it strongly for future successes in the NewSpace sector.

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