Rubicon Technology, Inc. Reports First Quarter 2013 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 first quarter ended
March 31, 2013.
The Company reported first quarter revenue of $8.3 million as compared
with $20.0 million in the prior quarter. Revenue was lower sequentially
due to reduced six-inch wafer orders as our key customers had excess
inventory of wafers going into the quarter. Raja Parvez, President and
CEO of Rubicon Technology, commented, “We will have another difficult
quarter for six-inch sales in the second quarter due to high customer
inventory levels, but we expect to begin seeing orders improve in the
second half of the year.”
Overall demand from the LED market is improving, driven by increasing
adoption of LEDs for general lighting applications. The Company reported
that its orders for two- through four-inch core products sold into the
LED market will increase significantly in the second quarter. Mr. Parvez
said, “We will likely ship 50 percent more two- through four-inch cores
in the second quarter than in any other quarter in our history.” Despite
the increased volumes that Rubicon has committed to supply for the
second quarter, pricing for two- through four-inch cores is increasing,
which we believe is evidence of the stronger LED demand. William
Weissman, CFO of Rubicon Technology, said, “Pricing for two- through
four-inch cores thus far in the second quarter is up around 10% over the
first quarter. This is a small dollar amount given the extremely low
pricing in the current market, but it is the first time we have seen
sapphire prices increase in the past two years, so that is encouraging.”
The Company reported a net loss of $0.15 per share in the first quarter
as compared to a net loss of $0.05 in the prior quarter. The weaker
six-inch sales and resulting lower utilization of operations resulted in
additional pressure on margins in the period.
Second Quarter 2013 Guidance
Commenting on the outlook for the second quarter of 2013, Mr. Parvez
said, “While the LED market is strengthening and sapphire capacity is
being absorbed at a more rapid rate, it will take a while longer for
pricing to materially improve. In addition, six-inch wafer orders will
remain weak in the second quarter as our customers continue to work down
remaining inventory. As a result, we expect second quarter demand for
large-diameter products to be very light, making for a challenging
quarter. We will be selling a considerable amount of two- through
four-inch cores in the second quarter, but selling prices remain below
our total cost and our utilization rates will remain low in the quarter.”
The Company expects revenue in the second quarter to be between $10 and
$12 million with a loss per share between $(0.19) and $(0.23) based on
22.5 million shares outstanding and a 46 percent tax benefit.
Conference Call Details
Rubicon will host a conference call at 5:00 p.m. Eastern time on May 7,
2013 to review the first quarter 2013 results and the second quarter
2013 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 May 14, 2013, and can be accessed by
dialing (888) 286-8010 or (617) 801-6888 (international). Callers should
reference conference ID 68906447. 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 first quarter of 2013, 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 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.
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Rubicon Technology, Inc.
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Condensed Consolidated Balance Sheets
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(in thousands)
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March 31,
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March 31,
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2013
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2012
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(unaudited)
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(unaudited)
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Assets
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Cash and cash equivalents
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$
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21,506
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$
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14,571
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Restricted cash
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171
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146
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Short-term investments
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14,339
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40,398
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Accounts receivable
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9,530
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12,292
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Inventories
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49,535
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32,510
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Other current assets
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15,902
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17,663
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Deferred taxes
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4,833
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3,078
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Total current assets
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115,816
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120,658
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Property and equipment, net
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116,932
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122,560
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Investments
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-
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2,000
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Other assets
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1,204
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1,312
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Total assets
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$
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233,952
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$
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246,530
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Liabilities and Stockholders' Equity
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Accounts payable
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$
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2,312
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$
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6,213
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Accrued and other current liabilities
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2,548
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2,589
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Total current liabilities
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4,860
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8,802
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Deferred tax liability
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7,278
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12,327
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Total liabilities
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12,138
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21,129
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Stockholders' equity
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221,814
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225,401
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Total liabilities and stockholders’ equity
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$
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233,952
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$
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246,530
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Rubicon Technology, Inc.
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Condensed Consolidated Statements of Operations (unaudited)
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(in thousands except share and per share amounts)
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Three months ended March 31,
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2013
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2012
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Revenue
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$
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8,307
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$
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10,207
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Cost of goods sold
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11,682
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13,615
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Gross loss
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(3,375
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)
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(3,408
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)
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General and administrative expenses
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2,190
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2,306
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Sales and marketing expenses
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349
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456
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Research and development expenses
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382
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476
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Total operating expenses
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2,921
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3,238
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Loss from operations
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(6,296
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)
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(6,646
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)
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Other income:
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Interest (expense) income and other, net
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(122
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375
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Loss before income taxes
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(6,418
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)
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(6,271
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)
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Income tax benefit
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3,042
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2,904
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Net loss
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$
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(3,376
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)
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$
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(3,367
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)
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Net loss per common share:
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Basic
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($0.15
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)
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($0.15
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)
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Diluted
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($0.15
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)
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($0.15
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)
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Weighted average common shares outstanding used in computing net
income per common share:
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Basic
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22,550,378
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22,514,539
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Diluted
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22,550,378
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22,514,539
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Rubicon Technology, Inc.
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Condensed Consolidated Statements of Cash Flows (unaudited)
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(in thousands)
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Three months ended March 31,
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2013
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2012
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Cash flows from operating activities
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Net loss
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$
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(3,376
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)
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$
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(3,367
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)
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Adjustments to reconcile net loss to net cash (used in) provided by
operating activities
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Depreciation and amortization
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3,110
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2,941
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Other
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406
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494
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Deferred taxes
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(3,048
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)
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(2,794
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)
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Changes in operating assets and liabilities
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Accounts receivable
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3,139
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20,352
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Inventories
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(2,253
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)
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(9,431
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)
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Other assets
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2,541
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4,630
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Accounts payable
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(6,609
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)
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(6,731
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Accrued expenses and other current liabilities
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(876
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)
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(1,200
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Net cash (used in) provided by operating activities
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(6,966
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)
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4,894
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Cash flows from investing activities
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Purchases of property and equipment
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(192
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)
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(4,570
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)
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Proceeds from sales of investments net of purchases of investments
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9,014
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10,172
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Net cash provided by investing activities
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8,822
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5,602
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Cash flows from financing activities
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Other financing activities
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2
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47
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Net cash provided by financing activities
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2
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47
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Net effect of currency translation
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75
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(262
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)
|
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Net increase in cash and cash equivalents
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1,933
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|
|
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10,281
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Cash and cash equivalents, beginning of period
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|
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19,573
|
|
|
|
4,290
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Cash and cash equivalents, end of period
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|
$
|
21,506
|
|
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$
|
14,571
|
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