Rubicon Tech shares sink after hours on 1Q loss
Rubicon Tech posts 1Q loss, predicts another tough quarter ahead and shares sink after hours
BENSENVILLE, Ill. (AP) -- Rubicon Technology Inc.'s shares sank in after-hours trading Tuesday after the company reported a loss for its first quarter and said it expects another unprofitable quarter ahead.
The company, based in Bensenville, Ill, provides sapphire substrates and products to semiconductor makers, the optical industry and the LED, or light-emitting diode, market.
Rubicon's net loss was flat by comparison to the prior year at $3.4 million, or 15 cents per share. Its revenue for the quarter fell 19 percent to $8.3 million from $10.2 million, and the company attributed the decline to reduced wafer orders from a key customer.
On average, analysts surveyed by FactSet forecast a quarterly loss of 11 cents per share on revenue of $7.9 million.
Rubicon said while demand is improving in the LED market and its sapphire capacity its being absorbed at a more rapid rate, it will take more time for the company's pricing to improve. The company said it faces challenges ahead as it expects wafer orders will remain weak in the second quarter as its customers work through their remaining inventory.
It expects to post a loss of 19 to 23 cents per share for the quarter on revenue between $10 million and $12 million.
Analysts expect a quarterly loss of 8 cents per share on revenue of $10.5 million.
Shares sank $1.17, or more than 16 percent, to $5.99 in after-hours trading on the news. Its shares fell 17 cents to close regular trading at $7.16.
