Exhibit 99.1
RUBICON TECHNOLOGY, INC. REPORTS THIRD QUARTER
2009 RESULTS AND OUTLINES TWO YEAR EXPANSION PLAN
Franklin Park, Ill – November 3, 2009— 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 athttp://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 athttp://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.
CONTACT:
William Weissman
Chief Financial Officer
847-457-3610
Rubicon Technology, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
| | | | | | |
| | | September 30,
2009
(unaudited) | | December 31,
2008
(audited) |
Assets | | | | | | |
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 | |
| | | | | | | | | | | | | | | | |
