This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Rubicon Technology, Inc. Reports First Quarter 2012 Results Of Operations

Rubicon Technology, Inc. (NASDAQ:RBCN), a leading provider of sapphire substrates and products to the LED, RFIC, semiconductor, and optical industries, today reported financial results for its first quarter ended March 31, 2012.

The Company reported revenue of $10.2 million and a loss of $0.15 per share for the first quarter. While the LED market is beginning to rebound, demand for sapphire substrates from that market remained weak in the quarter, resulting in a sequential decrease in revenue. Rubicon reported a sequential increase in revenue from the Silicon-on- Sapphire (“SoS”) market as SoS technology appears to be gaining market share.

Gross profit in the first quarter was negative, at $3.4 million, primarily as a result of the previously disclosed scrap expense of $1.8 million and underutilization of the Company’s fabrication and polishing operations. The Company’s operating loss was partially offset by a tax benefit, resulting in a first-quarter after-tax loss of $0.15 per share.

Raja Parvez, President and CEO of Rubicon Technology, commented, “As expected, market conditions remained challenging in the first quarter. Orders for two- through four-inch diameter products improved during the quarter but pricing remained low. For six-inch wafers, the SoS business was strong but, shipments to the LED market were limited due to excess inventory at a key customer. As we previously disclosed, shipments to this customer are scheduled to resume at the end of the second quarter.”

The Company ended the first quarter with $55.0 million in cash and short-term investments and no debt, unchanged from the prior quarter end, due to strong accounts receivable collections and limited capital expenditures.

Second Quarter 2012 Guidance

Commenting on the outlook for the second quarter of 2012, Mr. Parvez said, “We expect revenue in the second quarter of between $15 and $18 million. With the improvement in the LED market, we expect to ship a record volume of two- through four-inch cores into that market in the second quarter. However, we expect core pricing to remain low in the second quarter and to begin to improve in the second half as sapphire inventory levels decline. Revenue from six-inch polished wafers should begin to improve in the second quarter, and we have good visibility on stronger six-inch polished wafer growth in both the LED and SoS markets in the second half. However, underutilization of our slicing and polishing operations and low core pricing will pressure margins in the second quarter, and we expect a loss of $0.10 to $0.14 per share for the quarter, assuming a share count of 22.5 million and a tax benefit at a rate of approximately 40%.”

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.24 0.00%
FB $117.81 0.00%
GOOG $701.43 0.00%
TSLA $211.53 0.00%
YHOO $36.94 0.00%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs