Rakon, a high-tech company listed on the New Zealand Exchange (NZX), is actively pursuing up to ten satellite constellation supply contracts as it ramps up production for two contracts it secured earlier this year.
The company is strategically shifting some of its production capabilities to a new facility in India, which CEO Sinan Altug believes will provide Rakon with a competitive edge in the rapidly evolving satellite market.
In addition to its new facility in India, Rakon maintains operational bases in France and Auckland, further diversifying its manufacturing and logistical capabilities.
The company produces products that serve as the “electronic heartbeat” for thousands of systems globally, including mobile phone networks. To counterbalance challenges in its primary telecommunications market, it is expanding into sectors such as space, defence, and artificial intelligence (AI).
In May, Rakon secured a contract worth $17 million with Canadian space technology firm MDA Space to supply components for a low-earth orbit satellite constellation intended for Telesat.
Following this, in June, the company achieved another contract win for a satellite project with an undisclosed client.
It has also provided components for deep space missions, such as the European Space Agency’s spacecraft designed to explore Jupiter’s moons in search of signs of life.
Rakon has introduced several new products, including Global Navigation Satellite System (GNSS) receivers, Master Reference Oscillators (MROs), and ultra-stable oscillators. In August, the company launched a groundbreaking semiconductor chip specifically designed for its space oscillator products.
Rakon’s Master Reference Oscillator (MRO) subsystems deliver highly precise and stable frequency references along with accurate timing essential for satellite communications and synchronisation.
Meanwhile, its ultra-stable oscillator technology is crucial for maintaining stability in situations where a Global Positioning Signal (GPS) might not be available.
Altug mentioned that the unnamed customer is in the initial phase of what could develop into a constellation comprising thousands of satellites. He described this contract as “secretive.”
“We are not able to talk about any part of it, but I expect quite big potential from that; that has a good potential for expansion.”
Altug stated that Rakon’s commercial satellite constellation clients are “very pleased” with the company’s facility in India and its manufacturing capabilities.
The Bengaluru facility has achieved full production capacity and has received certification from the Indian Space Agency.
He also mentioned that the volume demanded by their Canadian client was quite ambitious, and the second confidential contract was even more so.
“For both of those and for the others that are in train, we’re actually ramping up our capacity in France,” Altug stated.
Rakon’s aerospace and defence division achieved a record revenue of $16.8 million in the six months ending September 30. However, this growth in the space and defence sectors was insufficient to offset a 51% decline in telecommunications revenue during the same period.
Despite this setback, Rakon remains optimistic about the expanding opportunities in its space and defence segment, as well as the potential in artificial intelligence and cloud computing markets.
Rakon has announced its collaboration with leading players in AI hardware to support the development of next-generation platforms for new “AI factory” data centers.
This year, the company launched several products in this area, including the MercuryX product range specifically designed for AI and cloud data centres.
Rakon anticipates revenue contributions from cloud computing and AI in the first half of the 2026 financial year.
Some analysts believe that this development will further diversify Rakon’s revenue streams and bolster its earnings recovery. They project that Rakon’s earnings before interest, taxation, depreciation, and amortisation (EBITDA) for the 2025 financial year will be approximately $6.4 million.