News Article
Rubicon Reports Record Q4 2010 Results
Revenue increased 44 % sequentially to $29.5 million due to a combination of increased sales volume and increased pricing resulting from strong demand from the LED market.
Rubicon Technology, a provider of sapphire substrates and products to the LED, RFIC, Semiconductor, and Optical industries, has reported financial results for its fourth quarter ended December 31, 2010.
Revenues for the quarter rose to $29.5 million, up 44 % sequentially and gross margin increased 9 percentage points sequentially to 63 %. Operating margin was 50 % and diluted earnings per share increased $0.29 sequentially to $0.64.
Commenting on the results, Raja Parvez, President and CEO said, "I am very pleased with the extraordinary finish to 2010 and look forward to what we expect to be a very strong 2011."
The Company's revenue increased 44 % sequentially to $29.5 million in the current quarter due to a combination of increased sales volume made possible by the additional capacity from its two new manufacturing facilities and increased pricing resulting from strong demand from the LED market.
The Company reported that its capacity expansion remains on schedule and also that there continues to be strong interest for its polished six inch wafers. Parvez continued, "Revenue from our 6 inch polished wafers increased over 70 % sequentially to $8.1 million in the fourth quarter. Demand for 6 inch wafers is increasing and we expect significant growth in this product in the second half of this year as more LED chip manufacturers have announced their intention to move into production on 6 inch wafers later this year."
Commenting on the outlook for the first quarter of 2011, William Weissman, Rubicon's CFO said, "We expect continued strong demand resulting in revenue growing approximately 20 percent sequentially to between $34 million and $36 million. We expect substrate pricing in the first quarter to be consistent with fourth quarter pricing and we expect to continue adding capacity on-schedule at our two new facilities.”
“Utilisation of newly added equipment and new hires will be lower in the first quarter, particularly in Malaysia, as we continue the qualification process with our customers. We anticipate gross margin, therefore, to be slightly lower in the first quarter but still in the high 50 % range. While we continue to have the benefit of net operating loss carry forwards for federal tax purposes, the Illinois State Legislature recently enacted changes to its tax code that, among other things, temporarily suspends the use of net operating loss carry forwards and increases the corporate tax rate. “
“Consequently, we estimate a 7 % effective tax rate for the first quarter. Based on a projected diluted share count of 24 million shares, we expect after-tax diluted earnings per share in the first quarter of between $0.62 and $0.65,"
Rubicon hosted a conference call to review the highlights of the fourth quarter 2010 results and the first quarter 2011 outlook. The conference call will be available to the public through a live audio web broadcast through the Investor Relations section of Rubicon's website
The audio replay will remain available until 11:59 p.m. Eastern time on February 22, 2011, and can be accessed by dialling
(888) 286-8010 (from the U.S.) or (617) 801-6888 (from outside the U.S.)
Callers should reference conference ID 35810165. The webcast will be archived on the Company's website.
