Rubicon Technology (RBCN) Beats Expectations, But Still Seeing Red

Rubicon Technology (RBCN), which makes components for LED’s, swung to a loss in the 2nd quarter vs a profit in the year ago quarter of .12/share.  While the company did beat expectations for revenue and EPS by reporting an EPS loss of .15 and revenues of $3.2 million, this is a company that continues to struggle after showing some promise last year.  You certainly wouldn’t know it by its stock price!  I suppose on the bright side, the company did post results that were a bit better than last quarter and they are bringing more manufacturing capacity back online.

Raja Parvez, CEO of Rubicon commented, “We saw an improvement in the LED market in the second quarter. This improvement has initially been focused in the Taiwan and Korea markets and is driven primarily by the increased rate of adoption of LED backlighting for notebook and netbook computers as well as a rush to bring LED backlit LCD televisions to market by some of the large consumer electronics companies.”

The company expects a bit more improvement in the 3rd quarter as well, but still far from 2008 levels.  They expect revenue of $4.5 million and a narrower loss $2.5 million.

Shares of Rubicon are trading down about 6% today and moving back to support of the 50 day moving average following yesterday’s surge higher ahead of earnings.


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