Rubicon Technology (RBCN) reported results this morning that weren’t all that impressive.  With Cree Inc (CREE) continuing to do extremely well in the LED space, I expected a bit better results.  The company reported a loss of .10/share which matched analyst estimates on revenues of $5.7 million which was a bit above what Wall St expected.  The CEO commented on the strength in the LED market , but it doesn’t appear they’re capitalizing just yet.

The company indicated they are adding an additional crystal growth facility in the US and a post crystal growth processing plant in Asia, but those plants are at least two years away from being operational. 

The CEO commented on the expansion plans: “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.” In my opinion, they reacted too slow to LED demand and aren’t going to capitalize as quickly as they should.

For next quarter, the company expects in incremental improvement with revenues increasing to $7 million and a paring of the loss per share to .05/share.