Rubicon Technology, a provider of sapphire substrates and products to the LED, RFIC, semiconductor, and optical industries, reported that second quarter (ended June 30, 2012) revenue increased to US$17.0 million from US$10.2 million in the prior quarter with sales increasing for both six-inch sapphire wafers and smaller diameter core. Revenue from six-inch wafer sales increased 84% sequentially to US$10.1 million and represented 59% of revenue for the quarter.
Gross profit in the second quarter was break-even, a sequential improvement of 33 points, driven by a number of factors including increased revenue from higher margin wafer sales and improved utilization of the firm's polishing operations. Rubicon indicated that the weak pricing environment, particularly for two- through four-inch sapphire cores, continues to be a drag on margins but indicated that they expect pricing to improve once inventory levels at sapphire producers are reduced.
Commenting on the outlook for the third quarter of 2012, William Weissman, Rubicon's CFO, said, "We expect revenue in the third quarter of between US$18-21 million. Pricing for two-through-four inch cores will likely remain low for another quarter or two as sapphire inventory levels continue to get worked down at a slower pace than originally expected. Gross margin should continue to improve in the third quarter but will not likely cover all of our operating expenses. We expect a loss per share between negative US$0.02-0.05 in the third quarter."
