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 second quarter ended June 30, 2012.
The Company reported that second quarter revenue increased to $17.0 million from $10.2 million in the prior quarter with sales increasing for both six-inch sapphire wafers and smaller diameter core. Revenue from six-inch wafer sales increased 84 percent sequentially to $10.1 million and represented 59 percent of revenue for the quarter. Raja Parvez, President and CEO of Rubicon Technology, commented, “I am pleased with the growth in our six-inch wafer business in the quarter and expect additional growth in the second half of the year.”
Gross profit in the second quarter was break-even, a sequential improvement of 33 percentage points, driven by a number of factors including increased revenue from higher margin wafer sales and improved utilization of the Company’s polishing operations. The Company indicated that the weak pricing environment, particularly for two- through four-inch sapphire cores, continues to be a drag on margins but indicated that they expect pricing to improve once inventory levels at sapphire producers are reduced. Loss per share decreased to $0.06 in the second quarter from a loss of $0.15 in the prior quarter.
Mr. Parvez continued, “We saw the beginning of a recovery of the LED market in the quarter along with continued strong demand from the SoS market. The strength of our technology in crystal growth, fabrication and large-diameter wafer polishing has allowed us to earn a leadership position in supporting emerging technologies like SoS and in the continued advancement of the LED market. We continue to focus on enhancing our existing platforms and developing new products. Projects like our in-house raw material production and the in-situ crystal alignment, which has just been patented, will allow us to improve quality while reducing cost.”