Rubicon Technology, Inc. Reports Third Quarter 2009 Results and Outlines Two Year Expansion Plan
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FRANKLIN PARK, Ill.--(Business Wire)--
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, 2009.
The Company`s revenue increased $2.5 million sequentially to $5.7 million in the
third quarter driven by increased sales into the LED market. Diluted loss per
share for the third quarter was $0.10 compared to $0.15 per share in the
previous quarter. The Company cited the continued adoption of LED backlighting
for LCD televisions and notebook and netbook computers as drivers for growth in
the LED market.
Raja Parvez, President and CEO, noted, "The LED market continued to strengthen
in the third quarter and pricing of sapphire substrates stabilized in the
quarter as global capacity for sapphire production began to tighten."
The Company also provided commentary on their expansion plans, which includes
adding an additional crystal growth facility in the U.S. and building a low cost
post crystal growth processing facility in Asia. The Company is currently
working to finalize its plans, but it would be expected that both new facilities
would be open within twelve months and be fully operational, meaning all
equipment installed and operational, within 24 months.
Mr. Parvez continued, "We believe we are at the beginning of a long term growth
cycle in the LED industry. These expansion initiatives would be designed to
ensure Rubicon maintains its global leadership in high quality, large diameter
sapphire substrates and ensure our pricing remains competitive while maximizing
our revenue and margins generated from our existing and new manufacturing
facilities."
Fourth Quarter 2009 Guidance
Commenting on the outlook for the fourth quarter, William Weissman, Rubicon`s
Chief Financial Officer said "We estimate revenue for the fourth quarter will
further improve to approximately $7.0 million. We expect pricing to begin to
increase in the fourth quarter and also expect to see an increase in the
percentage of revenue from large diameter substrates. Based on the expected
pricing and mix, gross margin should turn positive with a reduction in diluted
loss per share to approximately $0.05."
Conference Call Details
Rubicon will host a conference call at 8:30 a.m. Eastern time on November 3,
2009 to review the highlights of the third quarter 2009 results and the fourth
quarter 2009 outlook. The conference call will be available to the public
through a live audio webcast via the Internet. Log on to 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. November 10, 2009, and can be
accessed by dialing (888)-286-8010 or (617) 801-6888 (international). Callers
should reference conference ID 98862346. 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 actively developing larger diameter
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 2009, constitute "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, 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 managing the expansion
of our manufacturing capacity, 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, December 31,
2009 2008
Assets (unaudited) (audited)
Cash and cash equivalents $ 3,816 $ 7,629
Restricted cash 10 5
Short-term investments 41,594 37,328
Accounts receivable, net 3,395 2,542
Inventories, net 7,247 7,882
Other current assets 2,794 4,926
Total current assets 58,856 60,312
Property and equipment, net 38,585 39,337
Investments 2,000 12,696
Total assets $ 99,441 $ 112,345
Liabilities and Stockholders' Equity
Accounts payable $ 868 $ 2,440
Accrued and other current liabilities 998 1,512
Total liabilities 1,866 3,952
Stockholders' equity 97,575 108,393
Total liabilities and stockholders` equity $ 99,441 $ 112,345
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,
2009 2008 2009 2008
Revenue $ 5,737 $ 11,758 $ 11,280 $ 33,796
Cost of goods sold 6,143 7,514 15,956 21,351
Gross profit (loss) (406 ) 4,244 (4,676 ) 12,445
General and administrative expenses 1,264 1,356 3,424 5,301
Sales and marketing expenses 310 218 799 699
Research and development expenses 216 179 566 679
Loss on disposal of assets - 1,215 - 1,215
Total operating expenses 1,790 2,968 4,789 7,894
Income (loss) from operations (2,196 ) 1,276 (9,465 ) 4,551
Other income (expense):
Interest income (expense) and other, net 134 392 590 1,691
Income (loss) before income taxes (2,062 ) 1,668 (8,875 ) 6,242
Income tax expense - 49 - 173
Net income (loss) $ (2,062 ) $ 1,619 $ (8,875 ) $ 6,069
Net income (loss) per common share:
Basic $ (0.10 ) $ 0.08 $ (0.44 ) $ 0.29
Diluted $ (0.10 ) $ 0.07 $ (0.44 ) $ 0.27
Weighted average common shares outstanding used in computing net income (loss) per common share:
Basic 20,032,470 21,222,321 20,112,967 20,891,128
Diluted 20,032,470 22,084,570 20,112,967 22,262,889
Rubicon Technology, Inc.
Condensed Consolidated Statements of Cash Flows (unaudited)
(in thousands)
Three months ended September 30, Nine months ended September 30,
2009 2008 2009 2008
Cash flows from operating activities
Net income (loss) ($2,062 ) $ 1,619 ($8,875 ) $ 6,069
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities
Depreciation and amortization 1,362 1,187 3,976 3,236
Net loss on disposal of equipment - 1,215 - 1,215
Other 242 195 646 571
Changes in operating assets and liabilities
Accounts receivable, net (1,121 ) (626 ) (853 ) (3,364 )
Inventories 723 (2,195 ) 635 (3,080 )
Other current assets 596 (293 ) 2,132 (1,509 )
Accounts payable (448 ) (1,683 ) (1,572 ) 1,341
Accrued expenses and other current liabilities 207 175 (514 ) (1,245 )
Net cash (used in) provided by operating activities (501 ) (406 ) (4,425 ) 3,234
Cash flows from investing activities
Purchases of property and equipment (1,610 ) (4,935 ) (3,224 ) (15,807 )
Proceeds from sale of investments 2,904 5,985 6,382 12,716
Net cash provided by (used in) investing activities 1,294 1,050 3,158 (3,091 )
Cash flows from financing activities
Purchase of treasury stock - - (2,577 ) -
Other financing activities 30 18 31 538
Net cash provided by (used in) financing activities 30 18 (2,546 ) 538
Net increase (decrease) in cash and cash equivalents 823 662 (3,813 ) 681
Cash and cash equivalents, beginning of period 2,993 4,399 7,629 4,380
Cash and cash equivalents, end of period $ 3,816 $ 5,061 $ 3,816 $ 5,061
Rubicon Technology, Inc.
William Weissman
Chief Financial Officer
847-457-3610
Copyright Business Wire 2009
