Rubicon (RBCN) – Trading Lower After Poor Earnings Results

Rubicon Technology (RBCN), which makes components for LED lighting is off about 4% in after hours trading after missing analyst estimates with a wider loss than expected last quarter.  The company reported a loss of .09/share vs estimates of .06/share.  Revenues came in at 4 million vs the expectation of 4.82 million.  After growing rapidly over the past few years and producing its first profitable year last year, this is a company going backwards in a hurry with an expected loss of .09/share for FY2009.

The quarter was impacted by a slow down in consumer spending, particularly in consumer electronics where where most of Rubicon’s products are used.

Raja Parvez, CEO of RBCN, said, “The LED market continued to soften throughout the fourth quarter. It may take another quarter or two for inventory levels throughout the supply chain to realign and for orders to pick up again. In the meantime we continue to monitor costs very closely and have adjusted staffing levels and production schedules accordingly.  Rubicon’s products are integral to several emerging technologies and demand will resume when supply chain inventory levels are reduced. We also believe we can build on the success of our growing optical business with new applications in new market segments that require high quality sapphire in large diameters. In the meantime, our strong balance sheet allows us to continue to invest in advancing our technology, in projects that will lower our costs, and in improving our capital structure through our share repurchase program.”

The company expects another rough quarter this quarter with revenues falling to 2 – 3 million resulting in anearnings loss of $3 – 4 million.

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