15 June 2011

Rubicon forecasts Q2/2011 revenue at high end of $40–43m guidance

Rubicon Technology Inc of Bensenville, IL, USA, which makes monocrystalline sapphire substrates and products for the LED, RFIC, semiconductor and optical industries, has reaffirmed its second-quarter 2011 revenue and earnings guidance (given on 5 May) and clarified its projected tax rate for Q2/2011 and remainder of the year.

The firm estimates that revenue should be at the high end of the $40–43m range of its guidance, up 13% on Q1’s $38m.

Pre-tax earnings are also expected to be at the high end of previous estimates. Its Q2 earnings per share (EPS) guidance of $0.82–0.86 assumed a diluted share count of 24 million shares and a tax rate of 7%, which represents accrual for state income taxes only.

When providing this guidance, management indicated that a determination might be made to begin accruing for federal income tax as soon as Q2 due to a number factors, including the dramatic increase in earnings. Chief financial officer William Weissman confirmed that the firm will begin accruing for federal income tax starting from Q2, which will bring the firm's effective tax rate up to about 40% for Q2 and the remainder of 2011. He also confirmed that the projected effective tax rate for 2012 remains at 30–35%. Factoring in the higher tax rate adjusts the previously issued EPS guidance to $0.53–0.55.

“We indicated in our last earnings call that we might begin accruing for federal income tax in the second quarter and, based on our continued strong earnings, it has been determined that accruing for federal tax in the second quarter is appropriate,” says Weissman.

Tags: Rubicon Sapphire substrates

Visit: www.rubicon-es2.com

Visit us at Linked In

See Latest IssueRSS Feed