Rakon

Last updated

Rakon Limited
Company type Public
NZX: RAK
IndustryFrequency Control, Quartz Crystal, Electronics, GPS, Wireless
Founded4 April 1967
Founder Warren Robinson
Headquarters Auckland, New Zealand
Number of locations
New Zealand, United Kingdom, France, India, China
Area served
Global
Products TCXO, OCXO, VCXO, Quartz crystal, Crystal oscillator
RevenueNZD $171 million (April 2022)
Website www.rakon.com

Rakon Limited is a technology company founded in 1967 that designs and manufactures frequency control products, primarily quartz crystals and temperature-compensated crystal oscillators (TCXO), [1] oven controlled crystal oscillators (OCXO) and voltage controlled crystal oscillators (VCXO). [2] Its head office is in Auckland, New Zealand with wholly owned subsidiaries in the United Kingdom and France with joint venture operations in India and China. [3] The company specialises in supplying frequency-control products to the GPS industry.

Contents

History

Rakon was founded on 4 April 1967 by Warren Robinson. [4] Robinson had previously operated a business manufacturing marine radios, Marlin Electronics. These marine radios required between 6-12 quartz crystals with each region within New Zealand requiring a different set of frequencies.

The only source for these crystals was the NZPO (New Zealand Post Office), and delivery times were often measured in months, which was an ongoing problem for Robinson in his ability to supply his radios. Warren Robinson realising there was an opportunity to compete with the NZPO sold Marlin Electronics to Autocrat Radio and went on to found Rakon Industries (RIL) a few years later (1967). Initially, the New Zealand government blocked Robinson's application to import crystal manufacturing equipment as they didn't wish there to be undue competition to the post office, however by 1967 Robinson was able to secure an import license for the equipment and started manufacturing quartz crystals, in his garage, to supply the local radio market.

Early growth

By 1971, Rakon had moved into its own premises and employed over 30 staff; it had also begun exporting the crystals to Australia and South East Asia. In 1972 Warren Robinson set up a second manufacturing plant in Singapore to supply the growing markets of Thailand, Malaysia, Philippines and Taiwan.

Crystal crash

Around 1980, Warren Robinson's eldest son, Brent Robinson, joined Rakon as managing director. Brent was made responsible for the crystal manufacturing business, while Warren focused on his other expanding business, Rakon Computers, which at the time owned the distribution rights for Unix in Australia and New Zealand.

Around this time, a new technology began being widely adopted in radio designs, frequency synthesis. This meant that rather than a radio requiring a pair of crystals for every frequency (one for transmit and a second for receive), only one single crystal was required. The impact of this was that Rakon's core crystal business was in rapid decline, with the total market size shrinking to 10% of its previous size.

TCXO development

In the mid-1980s, Brent came across a product type known as temperature-compensated crystal oscillators. These were mainly being manufactured in Japan at the time and were used, in particular, in cellular phones.

By the late 1980s, Rakon was supplying TCXOs to NEC Australia's Melbourne factory. The supply of these products became the main focus of Rakon's operations.

In order to increase the manufacturing volume, reduce the cost and improve the performance of the products, Rakon developed its manufacturing processes.

GPS market

In 1991, the company began supplying frequency references in the GPS industry.

Public listing

Rakon continued to focus on developing products for the GPS market. In 2006, they claimed to still hold over 50% market share in the autonomous GPS market (GPS which functions without assistance from the CDMA phone network).[ citation needed ]

In early 2006, Rakon announced they would list on the New Zealand stock exchange, and on 13 April, released their IPO prospectus.

Overseas expansion and recent financial performance

In March 2007, Rakon acquired the frequency-control products division of C-MAC Microtechnology. This acquisition gave Rakon a European-based operation, including 2 factories located in the UK and France. The new business unit specialised in other forms of wireless communications and allowed Rakon to become less dependent on the GPS market, and expanded Rakon's product range to include oven-controlled crystal oscillators (OCXO), voltage-controlled crystal oscillators (VCXO), the Pluto ASIC and a range of low performance commodity products.

In 2008 Rakon formed a joint venture with (Centum Electronics) to manufacture high value telecommunications infrastructure products and to commercialise Rakon France's R&D programme. Also in 2008, Rakon formed a joint venture with (Timemaker) to vertically integrate quartz crystal supply.

In 2011 Rakon opened a joint venture facility, Rakon Crystal Chengdu, in China. The investment was an unsuccessful one, with Rakon exiting from its 80% stake in the Chengdu factory in July 2013. [5]

Between 2012 and 2014, Rakon suffered a drop in revenue and margins and made a series of losses, shedding up to 86% of its market capitalisation compared to five years prior. [6]

In August 2013, the NZ Shareholders Association demanded the resignation of Rakon's Chairman, Bryan Mogridge, and another director, Darren Robinson (son of founder Warren Robinson), after the company announced poor results and a $30m write down of assets. [7]

Rakon was also fined $30,000 by the NZX after it failed to maintain continuous disclosure obligations over selling 80% of its shareholding in its Chengdu factory. [8]

Rakon returned to a small profit in November 2015 but with much reduced revenues compared to pre-GFC levels. [9]

Weapons components controversy

Since 2005, Rakon has been the subject a number of allegations relating to the use of their products in military applications. Rakon has never denied that they supply products into military applications and have, at various times, stated this accounts for 1% of their output, or 10% of their revenue.

In August 2005, the New Zealand Herald quoted Rakon Marketing Director, Darren Robinson, as saying that the company's technology went into "smart bombs and missiles" used by the US military. [10] Rakon denied the claims, stating the company was not privy to the "end-use systems, equipment or applications used by its customers." [10]

In May 2006 the New Zealand Herald [11] ran a large expose around Rakon products being supplied to Rockwelll for incorporation in United States Armed Forces 'smart bombs'. [1] The claims were based around the facts that Rakon had known of the end-use of their products since 1994 and may in fact be in breach of New Zealand export restrictions.

In July 2006, Rakon was the target of by Global Peace and Justice Auckland (GPJA). [12] During the Israeli attacks on Lebanon in July 2006, GPJA issued a media release [13] appealing "to the Prime Minister to close the loophole which allows New Zealand's Rakon Industries to export parts for Israeli bombs being dropped on Lebanon and Palestine.".

Rakon continues to maintain that their products had not been designed for military use and the question of where they were used was up to their customers to answer. Rakon listed Rockwell Collins as a customer in their IPO prospectus. In June 2006, the New Zealand Ministry of Foreign Affairs and Trade cleared Rakon products for export, stating that they were unlikely to have been specifically designed for military use. [14] [15]

The Rakon share price saw a significant rise after the Herald story went to press. However, various peace activist groups have maintained calls for Rakon to be prohibited from supplying any products to companies involved in the manufacture of weapons or weapons-related systems. [16]

Related Research Articles

An electronic oscillator is an electronic circuit that produces a periodic, oscillating or alternating current (AC) signal, usually a sine wave, square wave or a triangle wave, powered by a direct current (DC) source. Oscillators are found in many electronic devices, such as radio receivers, television sets, radio and television broadcast transmitters, computers, computer peripherals, cellphones, radar, and many other devices.

<span class="mw-page-title-main">Crystal oscillator</span> Electronic oscillator circuit

A crystal oscillator is an electronic oscillator circuit that uses a piezoelectric crystal as a frequency-selective element. The oscillator frequency is often used to keep track of time, as in quartz wristwatches, to provide a stable clock signal for digital integrated circuits, and to stabilize frequencies for radio transmitters and receivers. The most common type of piezoelectric resonator used is a quartz crystal, so oscillator circuits incorporating them became known as crystal oscillators. However, other piezoelectric materials including polycrystalline ceramics are used in similar circuits.

<span class="mw-page-title-main">Radio clock</span> Type of clock which self-synchronizes its time using dedicated radio transmitters

A radio clock or radio-controlled clock (RCC), and often colloquially referred to as an "atomic clock", is a type of quartz clock or watch that is automatically synchronized to a time code transmitted by a radio transmitter connected to a time standard such as an atomic clock. Such a clock may be synchronized to the time sent by a single transmitter, such as many national or regional time transmitters, or may use the multiple transmitters used by satellite navigation systems such as Global Positioning System. Such systems may be used to automatically set clocks or for any purpose where accurate time is needed. Radio clocks may include any feature available for a clock, such as alarm function, display of ambient temperature and humidity, broadcast radio reception, etc.

<span class="mw-page-title-main">Real-time clock</span> Circuit in a computer that maintains accurate time

A real-time clock (RTC) is an electronic device that measures the passage of time.

<span class="mw-page-title-main">Frequency counter</span>

A frequency counter is an electronic instrument, or component of one, that is used for measuring frequency. Frequency counters usually measure the number of cycles of oscillation or pulses per second in a periodic electronic signal. Such an instrument is sometimes called a cymometer, particularly one of Chinese manufacture.

<span class="mw-page-title-main">Seiko</span> Japanese manufacturing company

Seiko Group Corporation, commonly known as Seiko, is a Japanese maker of watches, clocks, electronic devices, semiconductors, jewelry, and optical products. Founded in 1881 by Kintarō Hattori in Tokyo, Seiko introduced the world's first commercial quartz wristwatch in 1969.

<span class="mw-page-title-main">Tuner (radio)</span> Frequency selection subsystem for various receiver systems

In electronics and radio, a tuner is a type of receiver subsystem that receives RF transmissions, such as AM or FM broadcasts, and converts the selected carrier frequency into a form suitable for further processing or output, such as to an amplifier or loudspeaker. A tuner is also a standalone home audio product, component, or device called an AM/FM tuner or a stereo tuner that is part of a hi-fi or stereo system, or a TV tuner for television broadcasts. The verb tuning in radio contexts means adjusting the receiver to detect the desired radio signal carrier frequency that a particular radio station uses. Tuners were a major consumer electronics product in the 20th century but in practice are often integrated into other products in the modern day, such as stereo or AV receivers or portable radios.

<span class="mw-page-title-main">Crystal oven</span> Temperature-controlled chamber for a quartz crystal

A crystal oven is a temperature-controlled chamber used to maintain the quartz crystal in electronic crystal oscillators at a constant temperature, in order to prevent changes in the frequency due to variations in ambient temperature. An oscillator of this type is known as an oven-controlled crystal oscillator. This type of oscillator achieves the highest frequency stability possible with a crystal. They are typically used to control the frequency of radio transmitters, cellular base stations, military communications equipment, and for precision frequency measurement.

Oscilloquartz, a company of ADVA Optical Networking, is a manufacturer of frequency sources, such as GPS& GLONASS receivers or caesium clocks for telecommunications applications and has been producing similar products for about 60 years. It also providers synchronization solutions for turnkey synchronization projects in e.g. PDH, SDH, SONET and all kind of mobile telecom networks e.g. GSM, X-CDMA, TETRA, 2.xG, 3G, 4G, UMTS, WiMAX.

Carter Holt Harvey Limited is a privately-owned New Zealand–based company controlled by Rank Group Limited, the corporate vehicle of the country's richest man, Graeme Hart. Based in Auckland, New Zealand, the company has three main divisions: Woodproducts New Zealand and Woodproducts Australia, which are both major Australasian manufacturers of wood-based building products; and Carters, a New Zealand chain of trade-focused building supply stores.

<span class="mw-page-title-main">Electric clock</span> Clock powered by electricity

An electric clock is a clock that is powered by electricity, as opposed to a mechanical clock which is powered by a hanging weight or a mainspring. The term is often applied to the electrically powered mechanical clocks that were used before quartz clocks were introduced in the 1980s. The first experimental electric clocks were constructed around the 1840s, but they were not widely manufactured until mains electric power became available in the 1890s. In the 1930s, the synchronous electric clock replaced mechanical clocks as the most widely used type of clock.

<span class="mw-page-title-main">Nihon Dempa Kogyo</span> Japanese electronic components manufacturing company

Nihon Dempa Kogyo Co., Ltd. or NDK is one of the world's largest quartz crystal companies, based in Shibuya, Tokyo, Japan.

Walter Guyton Cady was a noted American physicist and electrical engineer. He was a pioneer in piezoelectricity, and in 1921 developed the first quartz crystal oscillator.

<span class="mw-page-title-main">Quartz clock</span> Clock type

Quartz clocks and quartz watches are timepieces that use an electronic oscillator regulated by a quartz crystal to keep time. This crystal oscillator creates a signal with very precise frequency, so that quartz clocks and watches are at least an order of magnitude more accurate than mechanical clocks. Generally, some form of digital logic counts the cycles of this signal and provides a numerical time display, usually in units of hours, minutes, and seconds.

<span class="mw-page-title-main">JSC Meteor Plant</span> Russian-based producer of Frequency Control Products

JSC Meteor Plant is a Russian-based producer of Frequency Control Products.

Crystal oscillators can be manufactured for oscillation over a wide range of frequencies, from a few kilohertz up to several hundred megahertz. Many applications call for a crystal oscillator frequency conveniently related to some other desired frequency, so hundreds of standard crystal frequencies are made in large quantities and stocked by electronics distributors. Using frequency dividers, frequency multipliers and phase locked loop circuits, it is practical to derive a wide range of frequencies from one reference frequency.

Microelectromechanical system oscillators are devices that generate highly stable reference frequencies used to sequence electronic systems, manage data transfer, define radio frequencies, and measure elapsed time. The core technologies used in MEMS oscillators have been in development since the mid-1960s, but have only been sufficiently advanced for commercial applications since 2006. MEMS oscillators incorporate MEMS resonators, which are microelectromechanical structures that define stable frequencies. MEMS clock generators are MEMS timing devices with multiple outputs for systems that need more than a single reference frequency. MEMS oscillators are a valid alternative to older, more established quartz crystal oscillators, offering better resilience against vibration and mechanical shock, and reliability with respect to temperature variation.

Two independent clocks, once synchronized, will walk away from one another without limit. To have them display the same time it would be necessary to re-synchronize them at regular intervals. The period between synchronizations is referred to as holdover and performance under holdover relies on the quality of the reference oscillator, the PLL design, and the correction mechanisms employed.

<span class="mw-page-title-main">GPS disciplined oscillator</span> Combination of a GPS receiver and a stable oscillator

A GPS clock, or GPS disciplined oscillator (GPSDO), is a combination of a GPS receiver and a high-quality, stable oscillator such as a quartz or rubidium oscillator whose output is controlled to agree with the signals broadcast by GPS or other GNSS satellites. GPSDOs work well as a source of timing because the satellite time signals must be accurate in order to provide positional accuracy for GPS in navigation. These signals are accurate to nanoseconds and provide a good reference for timing applications.

<span class="mw-page-title-main">SiTime</span> American micro-electromechanical systems chipmaker

SiTime Corporation is a publicly traded fabless chipmaker based in Santa Clara, California that develops micro-electromechanical systems (MEMS), used for timing devices in electronics.

References

  1. 1 2 "Rakon Ltd". Rakon Ltd | Items | National Library of New Zealand | National Library of New Zealand. Retrieved 27 July 2022.
  2. "Rakon – Frequency Control Products and Timing Solutions". www.rakon.com. Retrieved 27 July 2022.
  3. "Contact us | Rakon". www.rakon.com. Retrieved 17 May 2024.
  4. "Rakon celebrates 50 year history in hi-tech industry". www.rakon.com. Retrieved 27 July 2022.
  5. Walters, Laura (5 July 2013). "Rakon sells Chinese subsidiary stake". Stuff.co.nz. Retrieved 1 January 2016.
  6. "Rakon loss doubles on writedowns, restructure". New Zealand Herald. 22 May 2014. ISSN   1170-0777 . Retrieved 1 January 2016.
  7. "Shareholders' Assoc challenge Rakon leaders". Stuff.co.nz. 30 August 2013. Retrieved 1 January 2016.
  8. "Rakon censure timely reminder, says Shareholders Assn". New Zealand Herald. 5 March 2014. ISSN   1170-0777 . Retrieved 1 January 2016.
  9. "Rakon turns to profit but annual earnings likely to be flat". The National Business Review. 19 November 2015. Retrieved 1 January 2016.
  10. 1 2 Booker, Jarrod (25 August 2005). "NZ firm denies weapons claim". The New Zealand Herald . Retrieved 4 November 2011.
  11. "NZ Herald - Breaking news, latest news, business, sport and entertainment - NZ Herald". The New Zealand Herald .
  12. "Protestors target Rakon - Newstalk ZB". Archived from the original on 29 September 2007. Retrieved 7 August 2006.
  13. "Appeal to freeze Rakon exports for Israeli bombs | Scoop News".
  14. "Rakon's exports lawful, says Goff - National - NZ Herald News". The New Zealand Herald. 16 June 2006.
  15. "IT news, careers, business technology, reviews".
  16. "Government bombs out over Rakon - Green Party". www.greens.org.nz. Archived from the original on 17 June 2006.