Welcome!

Microsoft Cloud Authors: Lori MacVittie, Elizabeth White, Yeshim Deniz, Serafima Al, Janakiram MSV

News Feed Item

Rubicon Technology, Inc. Reports Third 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 third quarter ended September 30, 2012.

The Company reported that third quarter revenue increased to $19.9 million from $17.0 million in the prior quarter driven by strong six-inch sapphire wafer sales. Revenue from six-inch wafer sales increased 62 percent sequentially as demand increased from both the Silicon-on-Sapphire and LED markets. Due to low industry pricing for two through four inch core products, the Company decided to sell a limited quantity of those products in the quarter. Raja Parvez, President and CEO of Rubicon Technology, commented, “We saw strong demand for our six-inch polished wafers in the quarter from both key markets, SoS and LED. While the recovery of the LED market is slower than expected, the strength of our technology has allowed us to outperform our peers by enabling us to take a leadership position in supporting emerging technologies like Silicon-on-Sapphire, large diameter LED substrates and large area optical windows.”

Gross margin in the third quarter increased to 12.3 percent, up from break-even in the prior quarter. The Company’s operating loss for the third quarter was reduced to $1.1 million from $3.1 million in the prior quarter, and earnings per share were $0.01 after recording a foreign currency gain and additional income tax credits.

Mr. Parvez continued, “While the LED market in general continues to remain fairly weak, we are seeing signs of improvement, and the SoS market remains strong. During the current LED industry cycle we continue to focus on enhancing our competitive position by developing new products, adding intellectual property and reducing our cost structure.”

Fourth Quarter 2012 Guidance

Commenting on the outlook for the fourth quarter of 2012, William Weissman, Rubicon’s Chief Financial Officer said, “For the fourth quarter we expect revenue to be similar to that of the third quarter with most of our revenue again coming from six-inch polished wafer sales. Pricing for two-through-four inch cores has not yet started to rebound, so we will likely sell limited volume of these products again in the fourth quarter. Gross margin will likely be in the high single digits as average pricing for six-inch wafers will be somewhat lower in the fourth quarter. The down cycle in the LED market has certainly delayed broader adoption of six inch substrates among LED chip manufacturers, and six-inch usage remains limited at this time. We are now beginning to see some chip manufactures re-engage their development work on six inch and expect strong growth in the six-inch market in the second half of next year. However, in the near term we expect to see some pricing pressure on six-inch given the limited demand and competitors trying to qualify for that business. Consequently, we expect a loss per share between $(0.02) and $(0.05) in the fourth quarter based on 22.5 million shares outstanding and a 50 percent tax benefit.”

Conference Call Details

Rubicon will host a conference call at 5:00 p.m. Eastern time on November 6, 2012 to review the third quarter 2012 results and the fourth quarter 2012 outlook. The conference call will be available to the public through a live audio web broadcast via the Internet. Log on through the Investor Relations section of Rubicon's website at http://www.rubicon-es2.com/index.html. An audio replay of the call will be available approximately two hours after the conclusion of the call. The audio replay will remain available until 11:59 p.m. Eastern time on November 13, 2012, and can be accessed by dialing (888) 286-8010 or (617) 801-6888 (international). Callers should reference conference ID 27970698. The webcast will be archived on the Company's website.

About Rubicon Technology, Inc.

Rubicon Technology, Inc. is an advanced electronic materials provider that is engaged in developing, manufacturing and selling monocrystalline sapphire and other crystalline products for light-emitting diodes (LEDs), radio frequency integrated circuits (RFICs), blue laser diodes, optoelectronics and other optical applications. The Company applies its proprietary crystal growth technology to produce very high-quality sapphire in a form that allows for volume production of various sizes and orientations of substrates and windows. Rubicon is a vertically-integrated manufacturer with capabilities in crystal growth, high precision core drilling, wafer slicing, surface lapping, large-diameter polishing and wafer cleaning processes, which the Company employs to convert the bulk crystal into products with the quality and precision specified by its customers. The Company is the world leader in larger diameter sapphire products to support next-generation LED, RFIC and optical window applications.

Further information is available at http://www.rubicon-es2.com.

Forward-Looking Statements

Certain of the statements in this release, particularly those preceded by, followed by or including the words “believes,” “expects,” “anticipates,” “intends,” “should,” “estimates,” or similar expressions, or those relating to or anticipating financial results for periods beyond the end of the third quarter of 2012, constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. For those statements, the company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by us. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, the statements. These risks and uncertainties include market acceptance of LED lighting, our ability to adapt to future changes in the LED industry, our successful development and market acceptance of RFIC and other new products, changes in the average selling prices of sapphire products, dependence on key customers, potential disruptions in our supply of electricity, changes in our product mix, our ability to protect our intellectual property rights, the competitive environment, the availability and cost of raw materials, the cost of compliance with environmental standards, the ability to make effective acquisitions and successfully integrate newly acquired businesses into existing operations and other risks and uncertainties described in the company's most recent Form 10-K and other filings with the Securities and Exchange Commission. For these reasons, readers are cautioned not to place undue reliance on the company's forward-looking statements. Any forward-looking statement that the company makes speaks only as of the date of such statement, and the company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data.

   
Rubicon Technology, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
         
September 30, September 30,
2012 2011
Assets (unaudited) (unaudited)
Cash and cash equivalents $ 7,601 $ 18,357
Restricted cash 171 514
Short-term investments 36,570 53,713
Accounts receivable, net 12,445 29,285
Inventories 45,811 16,705
Other current assets 18,315 16,233
Deferred tax assets   2,619   1,990
Total current assets 123,532 136,797
 
Property and equipment, net 121,358 116,318
Investments - 2,000
Other assets   1,583   1,276
Total assets $ 246,473 $ 256,391
 
Liabilities and Stockholders' Equity
Accounts payable $ 7,781 $ 6,765
Accrued and other current liabilities   3,151   5,940
Total current liabilities 10,932 12,705
 
Deferred tax liability   9,547   12,266
Total liabilities 20,479 24,971
 
Stockholders' equity   225,994   231,420
Total liabilities and stockholders’ equity $ 246,473 $ 256,391
 
       
Rubicon Technology, Inc.
Condensed Consolidated Statements of Operations (unaudited)
(in thousands except share and per share amounts)
                 
Three months ended September 30, Nine months ended September 30,
  2012     2011     2012     2011  
 
Revenue $ 19,942 $ 33,637 $ 47,152 $ 114,635
Cost of goods sold   17,497     17,516     48,104     47,339  
Gross profit (loss) 2,445 16,121 (952 ) 67,296
 
General and administrative expenses 2,530 3,251 6,880 9,228
Sales and marketing expenses 417 519 1,346 1,284
Research and development expenses 639 466 1,712 1,303
(Gain) loss on disposal of assets   -     -     (5 )   7  
Total operating expenses   3,586     4,236     9,933     11,822  
Income (loss) from operations (1,141 ) 11,885 (10,885 ) 55,474
 
Other income (expense):
Interest income and other, net   297     (110 )   384     35  
Income (loss) before income taxes (844 ) 11,775 (10,501 ) 55,509
Income tax benefit (expense)   1,116     (3,589 )   6,094     (18,311 )
Net income (loss) $ 272   $ 8,186   $ (4,407 ) $ 37,198  
 
Net income (loss) per common share:
Basic $ 0.01 $ 0.36 $ (0.20 ) $ 1.62
Diluted $ 0.01 $ 0.35 $ (0.20 ) $ 1.57
 

Weighted average common shares outstanding used in computing net income per common share:

Basic 22,524,611 22,822,286 22,519,171 22,948,980
Diluted 23,050,618 23,410,525 22,519,171 23,760,859
 
         
Rubicon Technology, Inc.
Condensed Consolidated Statements of Cash Flows (unaudited)
(in thousands)
                 
Three months ended September 30, Nine months ended September 30,
  2012       2011     2012       2011  
Cash flows from operating activities
Net income (loss) $ 272 $ 8,186 $ (4,407 ) $ 37,198
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities
Depreciation and amortization 3,065 2,577 8,958 6,842
Other 496 900 1,479 2,657
Deferred taxes (671 ) 17,905 (5,574 ) 14,576
Excess tax benefits from stock-based compensation - 6,410 - (4,301 )
Changes in operating assets and liabilities
Accounts receivable (3,129 ) 1,958 20,199 (10,609 )
Inventories (6,748 ) (4,384 ) (22,726 ) (5,826 )
Other assets (657 ) (4,543 ) 3,700 (7,991 )
Accounts payable 685 (1,561 ) (5,150 ) (2,386 )
Accrued expenses and other current liabilities   (621 )   (11,408 )   (636 )   638  
Net cash (used in) provided by operating activities   (7,308 )   16,040     (4,157 )   30,798  
 
Cash flows from investing activities
Purchases of property and equipment, net proceeds from disposal of assets (3,019 ) (15,271 ) (9,380 ) (40,656 )
Proceeds from sales of investments, net purchases of investments   (3,544 )   9,224     17,098     12,337  
Net cash (used in) provided by investing activities   (6,563 )   (6,047 )   7,718     (28,319 )
 
Cash flows from financing activities
Excess tax benefits from stock-based compensation - (6,410 ) - 4,301
Purchase of treasury stock - (5,482 ) - (5,482 )
Other financing activities   3     28     30     760  
Net cash provided by (used in) financing activities   3     (11,864 )   30     (421 )
 
Net effect of currency translation (305 ) 255 (280 ) 226
 
Net increase (decrease) in cash and cash equivalents (14,173 ) (1,616 ) 3,311 2,284
Cash and cash equivalents, beginning of period   21,774     19,973     4,290     16,073  
Cash and cash equivalents, end of period $ 7,601   $ 18,357   $ 7,601   $ 18,357  

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
DXWorldEXPO LLC announced today that ICC-USA, a computer systems integrator and server manufacturing company focused on developing products and product appliances, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City. ICC is a computer systems integrator and server manufacturing company focused on developing products and product appliances to meet a wide range of ...
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
Michael Maximilien, better known as max or Dr. Max, is a computer scientist with IBM. At IBM Research Triangle Park, he was a principal engineer for the worldwide industry point-of-sale standard: JavaPOS. At IBM Research, some highlights include pioneering research on semantic Web services, mashups, and cloud computing, and platform-as-a-service. He joined the IBM Cloud Labs in 2014 and works closely with Pivotal Inc., to help make the Cloud Found the best PaaS.
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
DXWorldEXPO LLC announced today that All in Mobile, a mobile app development company from Poland, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. All In Mobile is a mobile app development company from Poland. Since 2014, they maintain passion for developing mobile applications for enterprises and startups worldwide.
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or per...
We are seeing a major migration of enterprises applications to the cloud. As cloud and business use of real time applications accelerate, legacy networks are no longer able to architecturally support cloud adoption and deliver the performance and security required by highly distributed enterprises. These outdated solutions have become more costly and complicated to implement, install, manage, and maintain.SD-WAN offers unlimited capabilities for accessing the benefits of the cloud and Internet. ...
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
Founded in 2000, Chetu Inc. is a global provider of customized software development solutions and IT staff augmentation services for software technology providers. By providing clients with unparalleled niche technology expertise and industry experience, Chetu has become the premiere long-term, back-end software development partner for start-ups, SMBs, and Fortune 500 companies. Chetu is headquartered in Plantation, Florida, with thirteen offices throughout the U.S. and abroad.
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...
I think DevOps is now a rambunctious teenager - it's starting to get a mind of its own, wanting to get its own things but it still needs some adult supervision," explained Thomas Hooker, VP of marketing at CollabNet, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessio...
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
No hype cycles or predictions of zillions of things here. IoT is big. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, Associate Partner at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He discussed the evaluation of communication standards and IoT messaging protocols, data analytics considerations, edge-to-cloud tec...