UK’s Raspberry Pi expects stronger demand after first-half earnings drop

Audio By Carbonatix

By Paul Sandle

LONDON (Reuters) -Raspberry Pi, the single-board computer maker, said its second half started well, with earnings ahead of last year and demand strengthening, even after a 7% drop in adjusted earnings to $19.4 million for the six months to end-June.

The British company, which went public in June 2024, sold 3.6 million units in the period, slightly down on the year before. 

Shares in the group, which were priced at 280 pence in the IPO, were trading down 5% in early deals at 382 pence.

“We continued to build momentum in the half, with growing demand from our reseller channel and OEMs driving an 8% sequential increase in direct unit shipments and a significant customer order backlog at the end of June,” Chief Executive Eben Upton said. 

He said the company had sufficient DRAM memory supply for the rest of the year, alleviating any concerns around a surge in prices and tightening supply in the market.

“Twelve months ago people were asking me why do you want a year’s worth of DRAM? And the events of the last three-to-six months have probably illustrated why,” he told Reuters.

As well as selling computer boards to consumers, Raspberry Pi’s technology is used in manufacturing and other settings.

Upton said the company had experienced broad demand in industrial automation, energy management, aerospace and other sectors. 

Analysts expect the company to report adjusted core earnings of $43.1 million for the full year, according to a company-complied consensus of three analysts.

(Reporting by Paul Sandle; editing by Sarah Young and Barbara Lewis)