Click here to close now.

Welcome!

Microsoft Cloud Authors: Aleksei Gavrilenko, Elizabeth White, Liz McMillan, Pat Romanski, Jaynesh Shah

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
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, will explore the IoT cloud-based platform technologies driving this change including privacy controls, data transparency and integration of real time context wi...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of robomq.io, and Fred Yatzeck, principal architect leading product development at robomq.io, discussed how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at the same time reduce Time to Market (TTM) by using plug and play capabilities offered by a robust IoT ...
To many people, IoT is a buzzword whose value is not understood. Many people think IoT is all about wearables and home automation. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed some incredible game-changing use cases and how they are transforming industries like agriculture, manufacturing, health care, and smart cities. He will discuss cool technologies like smart dust, robotics, smart labels, and much more. Prepare to be blown away with a glimpse of the future.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.
SYS-CON Events announced today that BMC will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. BMC delivers software solutions that help IT transform digital enterprises for the ultimate competitive business advantage. BMC has worked with thousands of leading companies to create and deliver powerful IT management services. From mainframe to cloud to mobile, BMC pairs high-speed digital innovation with robust IT industrialization – allowing customers to provide amazing user experiences with optimized IT per...
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will addresses this very serious issue of profound change in the industry.
Business as usual for IT is evolving into a "Make or Buy" decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud business applications and services across multiple cloud delivery models.
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, investigated three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud environment, and we must architect and code accordingly. At the very least, you'll have no problem fillin...
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sectors.
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
SYS-CON Events announced today that the "Second Containers & Microservices Conference" will take place November 3-5, 2015, at the Santa Clara Convention Center, Santa Clara, CA, and the “Third Containers & Microservices Conference” will take place June 7-9, 2016, at Javits Center in New York City. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
SYS-CON Events announced today that the "First Containers & Microservices Conference" will take place June 9-11, 2015, at the Javits Center in New York City. The “Second Containers & Microservices Conference” will take place November 3-5, 2015, at Santa Clara Convention Center, Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal an...
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, 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 strategy. Meanwhile, 94% of enterprises are using some form of XaaS – software, platform, and infrastructure as a service.
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!