Rubicon Technology Earnings: Here’s Why Investors are Not Happy Now

Rubicon Technology, Inc. (NASDAQ:RBCN) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 16.20%.

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Rubicon Technology, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.15 in the quarter versus EPS of $-0.15 in the year-earlier quarter.

Revenue: Decreased 18.71% to $8.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Rubicon Technology, Inc. reported adjusted EPS loss of $0.15 per share. By that measure, the company missed the mean analyst estimate of $-0.11. It beat the average revenue estimate of $7.93 million.

Quoting Management: The Company reported first quarter revenue of $8.3 million as compared with $20.0 million in the prior quarter. Revenue was lower sequentially due to reduced six-inch wafer orders as our key customers had excess inventory of wafers going into the quarter. Raja Parvez, President and CEO of Rubicon Technology, commented, “We will have another difficult quarter for six-inch sales in the second quarter due to high customer inventory levels, but we expect to begin seeing orders improve in the second half of the year.”

Key Stats (on next page)…

Revenue decreased 58.69% from $20.09 million in the previous quarter. EPS increased to $-0.15 in the quarter versus EPS of $-0.05 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.04 to a loss $0.08. For the current year, the average estimate has moved down from a profit of $0.23 to a loss of $0.26 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]