News Article
Q1 2010 Results Rosy for Rubicon with Revenue up 35%
Strong LED demand for substrates greater than 2” major factor in improved financial results
Rubicon Technology, a provider of monocrystalline sapphire and other crystalline products for LEDs and optoelectronic applications announces its Strong First Quarter 2010 Results of Operation
First Quarter 2010 Financial Highlights include
* Revenue rose to $11.5 million, up 35% sequentially
* Gross margin increased from 12% in last quarter to 36% in Q1 2010
* Average selling price of substrates increases 20% sequentially
* Diluted earnings per share of $0.07 as compared to a loss per share of $0.04 in the Q4 2009
Raja Parvez, President and CEO commented, "We started the year with a strong quarter as a combination of increased pricing, improved product mix, and operational efficiency enabled us to dramatically increase gross margin and earnings per share in the quarter."
The Company's revenue increased 35% sequentially to $11.5 million in the current quarter mainly driven by strong demand from the LED market. The strong demand enabled the Company to increase pricing on its sapphire substrates by 20 percent over prices in the prior quarter. The Company also reported sales to the SoS RFIC and Optical markets up significantly in the quarter.
It was noted that LED chip manufacturers continue to migrate away from 2” substrates towards larger wafers. Mr. Parvez added, "We expect increased orders for 6” polished wafers in the second half of the year and are gearing up our polishing operation to accommodate the increased demand."
Q2 2010 Outlook
William Weissman, Rubicon's CFO said, "Demand remains strong and we estimate revenue for the second quarter will increase to approximately $14.0 million. We expect diluted earnings per share of approximately $0.14, based on a projected diluted share count of 21.5 million share."
Conference Call Details
Rubicon is hosting a conference call at 5:00 p.m. E.T. on April 29, 2010 to review the highlights of the first quarter 2010 results and the second quarter 2010 outlook.
The conference call is available through a live audio web broadcast by logging on to the company website via 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 and will remain available until 11:59 p.m. May 6, 2010.
The replay may be accessed by dialing
(888)-286-8010
or (617) 801-6888 (international)
Callers should reference conference ID 36847834.
The webcast will be archived on the Company's website