Rubicon Technology, Inc.

Revenue in the first quarter was $4.3 million, up from $2.5 million in the prior quarter. GAAP loss per share was $0.28 versus $0.49 in the fourth quarter; the fourth-quarter non-GAAP loss per share was $0.38. Wafer revenue increased by $1.5 million sequentially, including $1.1 million from PSS wafers. Core sales were $440,000, and optical/R&D revenue was $1.5 million, up $400,000. Idle plant cost remained high at $2.3 million, while operating expenses fell to $2.7 million from $3.3 million. Cash and short-term investments totaled $25 million at March 31, with DSO at 41 days. For Q2, management expects revenue and GAAP loss per share to be similar to Q1, and for Q3 expects revenue growth to resume and PSS wafer sales to step up significantly.

Bill Weissman said the sapphire market remains very challenging because of excess capacity, low pricing, and inventory fluctuations, so Rubicon is focusing on differentiated products like optical parts and large-diameter PSS wafers. He emphasized new application opportunities in consumer electronics and medical devices, calling them important potential new demand sources that could help rebalance supply and demand. His tone was cautious but constructive: near-term conditions are weak, but he repeatedly pointed to long-term margin improvement, cost reductions, and product diversification.

Mardel Graffy detailed the quarter’s financials, noting revenue of $4.3 million, a sequential increase of $1.8 million, and wafer revenue of $1.5 million higher, with $1.1 million of that from PSS wafers. She highlighted that core sales were $440,000, optical and R&D revenue was $1.5 million, idle plant cost stayed at $2.3 million, and operating expenses declined to $2.7 million due to lower G&A, professional fees, and bad debt expense. On liquidity, she said cash and short-term investments were $25 million at March 31, inventory fell by $500,000, and the company expects minimal capex for the rest of the year after the SapphirEX payment.

Analysts asked about core sales, PSS linearity, and remaining cost reductions. Management said it expects to keep selling roughly the same amount of four-inch core in the next quarter to maintain furnace utilization and key talent, and said PSS should step up in the back half of the year and then hold until more capacity is added. On costs, Bill Weissman said most remaining reductions are still in polishing, especially in Malaysia, but the company is also looking at crystal growth yields and SG&A.