Rubicon Technology, Inc. (NASDAQ:RBCN), a leading provider of sapphire substrates and products to the LED, semiconductor, and optical industries, today reported financial results for its fourth quarter ended December 31, 2013.
The Company reported fourth quarter revenue of $11.5 million as compared with $11.1 million in the prior quarter. Overall demand for sapphire continued its rebound with the growing momentum of the general lighting segment of the LED market and demand from non-LED applications for mobile devices, such as the sapphire home button on the iPhone 5S, as well as the camera lens cover now being adopted by more smartphone manufacturers. Revenue from two and four-inch sapphire core sales increased twenty-eight percent sequentially to $9.2 million from $7.2 million in the prior quarter. Half of the sequential growth in core sales resulted from price increases and the other half resulted from increased volume. The Company was able to increase core volumes by adding some core fabrication capacity. This added capacity now allows the Company to fabricate and sell all crystals produced in a given period regardless of product mix. Higher revenue from two and four-inch cores was largely offset by a decrease in wafer and optical sapphire sales.
Raja Parvez, President and CEO of Rubicon, commented, “While wafer revenue was low in the fourth quarter, we continued to make good progress on our patterned sapphire substrate (“PSS”) and polished wafer initiatives. We are very pleased with the progress on the PSS product introduction. We announced the introduction of the PSS product in October and we have already received requests for samples from sixteen different customers, which we believe positions us to meet our 2014 revenue target for PSS wafers of at least $15 million.” Mr. Parvez continued, “In addition, we received our first production order of four-inch polished wafers for the first quarter and expect orders from existing customers of six inch LED wafers to begin picking up in the second quarter.”