For the fourth quarter ended December 31, 2008, the company reported revenue of $4 million, a net loss of $1.8 million, and a $0.09 diluted loss per share. The quarter was dramatically affected by the impact of a slowdown in consumer spending, particularly in consumer electronics, where much of company’s products are currently used. The results were within the company’s guidance range.
Raja Parvez, chief executive officer of Rubicon, stated, 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.”
During the quarter, the company repurchased about 731,000 shares under its share repurchase program at a total cost of about $3.1 million and purchased $2 million in preferred equity in Peregrine Semiconductor, one of the company’s customers. Year-end cash and investments totaled $58 million and the company had no debt.
Parvez added, “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.”
First Quarter 2009 Outlook:
Commenting on the 2009 outlook, Parvez stated, “The first quarter will be challenging, with reduced LED orders as inventory levels come down. As a result, we currently expect revenue in the first quarter to be between $2 million and $3 million. Based on this level of revenue, we expect a net loss for the quarter of between $3 million and $4 million. Until we have further clarity on the longer term outlook for our product sales, we believe it’s prudent to refrain from giving full year estimates,” he added.
