Photo: 123RF
Computer chip manufacturer Rakon is lifting its profit outlook by $2 million with continued global demand for its products.
The company expected its underlying profit to be in a range of $40m-$44m for the full year ending 31 March, compared with the previous guidance of between $38m-$44m, subject to currency fluctuations.
"We are encouraged by the continued growth in our core business, which has offset the tail-off in the short-term chip shortage business that gave us a significant boost in revenue in FY22, and partially in FY23," chief executive Sinan Altug said.
"Continued growth in global demand for our industry-leading products has meant we are on track to deliver a solid full year result."
The company said it was still closely monitoring its inventory levels along with cost inflation, which had the potential to affect revenue and profit in the short-term.
"Our technology and industry leading products position us well to increase market share in our core high growth sectors - telecommunications, space and defence, and positioning," Altug said, adding the company was accelerating its growth plans.
Rakon's new manufacturing facility in Bengaluru, India, was on schedule to open in mid-2023. It was expected to improve manufacturing capacity and capability and lower production costs.