News Article
Rubicon reaffirms Q2 2011 guidance
The firm has had another solid quarter and estimates that revenue in the second quarter should come in at the high end of the $40 million and $43 million range of its previously provided guidance.
Rubicon Technology, a provider of sapphire substrates and products to the LED, RFIC, semiconductor and optical industries has reaffirmed its previously issued second quarter 2011 revenue and earnings guidance and clarified its projected tax rate for the second quarter and remainder of the year.
The Company reported that it is having another solid quarter and estimates that revenue in the second quarter should come in at the high end of the $40 million and $43 million range of its previously provided guidance. Pre-tax earnings are also expected to be at the high end of the previous estimates. The Company’s second quarter EPS guidance of $0.82 to $0.86 assumed a diluted share count of 24 million shares and a tax rate of 7 %, which represents accrual for state income taxes only.
When providing this guidance, the management indicated that a determination might be made to begin accruing for federal income tax as soon as the second quarter due to a number factors, including the dramatic increase in earnings of the Company. William Weissman, Rubicon’s Chief Financial Officer, has confirmed that the Company will begin accruing for federal income tax beginning the second quarter of this year, which will bring the Company’s effective tax rate up to approximately 40 % for the second quarter and for the remainder of this year. Weissman also confirmed that the projected effective tax rate for 2012 remains at 30 to 35 %. Factoring in the higher tax rate adjusts previously issued EPS guidance to between $0.53 and $0.55.
Weissman said, “We are having another strong quarter and expect our revenue and earnings to come in at the high end of our previous estimates. We indicated in our last earnings call that we might begin accruing for federal income tax in the second quarter and, based on our continued strong earnings, it has been determined that accruing for federal tax in the second quarter is appropriate. The high end of our EPS guidance, adjusted for the higher tax rate is $0.55.”
