RUBICON TECHNOLOGY, INC. (RBCN, Financial) filed Quarterly Report for the period ended 2010-06-30.
Rubicon Technology, Inc. has a market cap of $597.3 million; its shares were traded at around $29.34 with and P/S ratio of 30.2. RBCN is in the portfolios of Ron Baron of Baron Funds, Louis Moore Bacon of Moore Capital Management, LP.
Gross profit (loss). Gross profit was $7.2 million for the three months ended June 30, 2010 compared to a gross loss of $1.7 million for the three months ended June 30, 2009, an increase of $8.9 million. The increase in gross profit is primarily attributable to higher revenue of $12.6 million and better utilization of equipment and staff, which led to improved operating leverage and higher throughput. In addition, sales of larger diameter products, which have a higher gross profit margin, increased by $9.8 million. In 2009, with the decrease in orders, we experienced lower utilization of equipment and staff which resulted in under absorbed manufacturing costs of approximately $1.7 million.
General and administrative expenses. G&A expenses were $2.4 million for the three months ended June 30, 2010 and $1.0 million for the three months ended June 30, 2009, an increase of $1.4 million. The increase was due in part to increased employee compensation costs of $806,000, of which $375,000 was from increased bonus accrual as no bonus was earned in 2009. Bad debt expense increased by $250,000 as 2009 included a reduction of our reserve on collection of an over 90 day past due receivable. Directors fees increased $92,000 due to $65,000 of costs associated with accelerating vesting of certain restricted shares for a director who recently resigned from our board and an increase in compensation in 2010. Also, legal expenses increased $74,000, travel expenses increased $52,000 and we incurred $37,000 in human resources costs associated with the recruiting and training of employees for the Malaysia facility.
Other income. Other income was $30,000 for the three months ended June 30, 2010 and $186,000 for the three months ended June 30, 2009, a decrease in other income of $156,000. The decrease was primarily due to lower interest income of $94,000 as a result of lower daily averages of investment principal and lower interest rates, a decrease in realized gains on investments of $43,000 and a $19,000 loss as a result of currency translation not incurred in 2009.
Gross profit (loss). Gross profit was $11.4 million for the six months ended June 30, 2010 and gross loss was $4.3 million for the six months ended June 30, 2009, an increase of $15.7 million. The increase in gross profit is primarily attributable to higher revenue of $21.8 million and better utilization of equipment and staff, which led to improved operating leverage and higher throughput. In addition, sales of larger diameter products, which have a higher gross profit margin, increased by $14.9 million. In 2009, with the decrease in orders, we experienced lower utilization of equipment and staff which resulted in under absorbed manufacturing costs of approximately $4.5 million.
General and administrative expenses. G&A expenses were $4.6 million for the six months ended June 30, 2010 and $2.2 million for the six months ended June 30, 2009, an increase of $2.4 million. The increase was primarily due to an increase in employee compensation costs of $1.4 million, $735,000 of which was increased bonus costs as no bonus was earned in 2009 and $709,000 was in annual salary increases and expenses associated with the issuance and exercise of employee stock options. Bad debt expense increased $427,000 as 2009 included a reduction of our reserve on collection of an over 90 day past due receivable. Directors costs increased $136,000 due to $65,000 of costs associated with accelerating vesting of certain restricted shares for a director who recently resigned from our board and an increase in compensation in 2010. Also, legal expenses increased $136,000 and we incurred $64,000 in human resources costs associated with the recruiting and training of employees for the Malaysia facility.
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Rubicon Technology, Inc. has a market cap of $597.3 million; its shares were traded at around $29.34 with and P/S ratio of 30.2. RBCN is in the portfolios of Ron Baron of Baron Funds, Louis Moore Bacon of Moore Capital Management, LP.
Highlight of Business Operations:
Other income (expense) consists of interest income and expense and realized gains and losses on investments and currency translation. For the three and six months ended June 30, 2010, interest income was $56,000 and $153,000 partially offset by a realized loss on currency translation of $19,000 and $59,000. For the three and six months ended June 30, 2009, interest income was $150,000 and $407,000.Gross profit (loss). Gross profit was $7.2 million for the three months ended June 30, 2010 compared to a gross loss of $1.7 million for the three months ended June 30, 2009, an increase of $8.9 million. The increase in gross profit is primarily attributable to higher revenue of $12.6 million and better utilization of equipment and staff, which led to improved operating leverage and higher throughput. In addition, sales of larger diameter products, which have a higher gross profit margin, increased by $9.8 million. In 2009, with the decrease in orders, we experienced lower utilization of equipment and staff which resulted in under absorbed manufacturing costs of approximately $1.7 million.
General and administrative expenses. G&A expenses were $2.4 million for the three months ended June 30, 2010 and $1.0 million for the three months ended June 30, 2009, an increase of $1.4 million. The increase was due in part to increased employee compensation costs of $806,000, of which $375,000 was from increased bonus accrual as no bonus was earned in 2009. Bad debt expense increased by $250,000 as 2009 included a reduction of our reserve on collection of an over 90 day past due receivable. Directors fees increased $92,000 due to $65,000 of costs associated with accelerating vesting of certain restricted shares for a director who recently resigned from our board and an increase in compensation in 2010. Also, legal expenses increased $74,000, travel expenses increased $52,000 and we incurred $37,000 in human resources costs associated with the recruiting and training of employees for the Malaysia facility.
Other income. Other income was $30,000 for the three months ended June 30, 2010 and $186,000 for the three months ended June 30, 2009, a decrease in other income of $156,000. The decrease was primarily due to lower interest income of $94,000 as a result of lower daily averages of investment principal and lower interest rates, a decrease in realized gains on investments of $43,000 and a $19,000 loss as a result of currency translation not incurred in 2009.
Gross profit (loss). Gross profit was $11.4 million for the six months ended June 30, 2010 and gross loss was $4.3 million for the six months ended June 30, 2009, an increase of $15.7 million. The increase in gross profit is primarily attributable to higher revenue of $21.8 million and better utilization of equipment and staff, which led to improved operating leverage and higher throughput. In addition, sales of larger diameter products, which have a higher gross profit margin, increased by $14.9 million. In 2009, with the decrease in orders, we experienced lower utilization of equipment and staff which resulted in under absorbed manufacturing costs of approximately $4.5 million.
General and administrative expenses. G&A expenses were $4.6 million for the six months ended June 30, 2010 and $2.2 million for the six months ended June 30, 2009, an increase of $2.4 million. The increase was primarily due to an increase in employee compensation costs of $1.4 million, $735,000 of which was increased bonus costs as no bonus was earned in 2009 and $709,000 was in annual salary increases and expenses associated with the issuance and exercise of employee stock options. Bad debt expense increased $427,000 as 2009 included a reduction of our reserve on collection of an over 90 day past due receivable. Directors costs increased $136,000 due to $65,000 of costs associated with accelerating vesting of certain restricted shares for a director who recently resigned from our board and an increase in compensation in 2010. Also, legal expenses increased $136,000 and we incurred $64,000 in human resources costs associated with the recruiting and training of employees for the Malaysia facility.
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