Rubicon Technology, a US-based sapphire substrates provider, has reported financial results for its third quarter ended September 30, 2012.
The firm reported that third-quarter revenue increased to US$19.9 million from US$17 million in the prior quarter driven by strong 6-inch sapphire wafer sales. Revenue from 6-inch wafer sales increased 62% sequentially as demand increased from both the silicon-on-sapphire (SoS) and LED markets.
Due to low industry pricing for 2- to 4-inch core products, the firm decided to sell a limited quantity of those products in the quarter, said Rubicon. Raja Parvez, president and CEO of Rubicon Technology, commented, "Rubicon saw strong demand for our 6-inch polished wafers in the quarter from both key markets, SoS and LED. While the recovery of the LED market is slower than expected, the strength of the firm's technology has allowed us to outperform our peers by enabling us to take a leadership position in supporting emerging technologies like SoS, large diameter LED substrates and large area optical windows."
According to Rubicon, gross margin in the third quarter increased to 12.3%, up from breakeven in the prior quarter. The firm's operating loss for the third quarter was reduced to US$1.1 million from US$3.1 million in the prior quarter after recording a foreign currency gain and additional income tax credits.
Parvez continued, "While the LED market in general continues to remain fairly weak, Rubicon is seeing signs of improvement, and the SoS market remains strong. During the current LED industry cycle we continue to focus on enhancing our competitive position by developing new products, adding intellectual property and reducing our cost structure."
