RUBICON TECHNOLOGY, INC. (RBCN, Financial) filed Quarterly Report for the period ended 2009-03-31.
RUBICON TECHNOLOGY is an advanced electronic materials provider that develops manufactures and sells monocrystalline sapphire and other innovative crystalline products. Rubicon's products are used in light emitting diodes and blue laser diodes for solid state lighting and electronics applications in radio frequency integrated circuits and in products for military aerospace sensor and other applications. Rubicon is headquartered in Franklin Park Illinois. RUBICON TECHNOLOGY, INC. has a market cap of $183.6 million; its shares were traded at around $9.16 with and P/S ratio of 4.9.
As of March 31, 2009, we had cash and short term investments totaling $39.4 million, including cash of $386,000 held in deposits at a major bank, $5.2 million invested in money market funds and short term investments in commercial paper, state and local bonds, and U.S. treasury securities of $33.8 million. Our long term investments of $12.7 million are municipal auction-rate securities and related put options of $10.7 million and a $2.0 million investment in Peregrine Semiconductor, Corp. (one of our customers) Series D1 preferred stock. In February 2008, we began experiencing failed auctions of our entire auction-rate securities portfolio, resulting in our inability to sell these securities in the short term. All of the auction-rate securities are AAA rated by one or more of the major credit rating agencies and have contractual maturities from 2036 to 2045. Further, all of these securities are collateralized by student loans, and approximately 99% of the collateral qualifies under the Federal Family Education Loan Program and is guaranteed by the US government. We are receiving the underlying cash flows on all of our auction-rate securities. The auction-rate securities have been classified as long-term investments as of March 31, 2009.
$996,000 as sales declined, a decrease in accounts payable of $1.2 million as purchases declined and a decrease in spare parts of $678,000 primarily due to not replenishing stock used due to lower production volumes. We also experienced a decrease in accrued payroll of $301,000 due to pay outs of bonuses earned in the first half of 2008 and a decrease in corporate income and franchise taxes of $183,000 due to payment of 2008 taxes due.
Cash provided by operating activities was $1.7 million for the three months ended March 31, 2008. During such period, we generated net income of $2.3 million and we incurred non-cash expenses of $1.1 million, including depreciation and amortization expense of $945,000 and stock-based compensation expense of $188,000. We experienced an increase during such period in accounts receivable of $928,000 on increased sales, an increase in accounts payable of $696,000 and an increase in spare parts of $448,000 due primarily to an increase in safety stock of raw material and furnace material inventory. We also experienced a decrease in accrued payroll of $518,000 due to pay outs of bonuses earned in 2007 and a decrease in deferred revenue of $250,000 due to recognition of revenue deferred on a contract research project.
Net cash provided by (used in) investing activities was $2.8 million and ($1.8) million for the three months ended March 31, 2009 and 2008, respectively. During the three months ended March 31, 2009, we used approximately $456,000 to add crystal growth furnaces and approximately $57,000 to upgrade existing capacity in other areas. This was partially offset by sales of investments of $3.4 million which were used to fund operations, capital spending and our stock repurchases. During the three months ended March 31, 2008, we used approximately $3.1 million to purchase components used to construct additional crystal growth furnaces, approximately $488,000 for infrastructure changes needed to commence operations in our facility in Bensenville, Illinois and approximately $1.1 million to purchase various equipment used to expand our production capacity in support of our sales growth. This was partially offset by sales of investments of $2.8 million. Because of the current economic environment, it is difficult to predict capital expenditures needed to support or enhance our current operations, but we anticipate it will be approximately $10.0 million in 2009. These expenditures will be primarily focused on research and development and cost savings initiatives and will be incurred mostly in the second half of 2009.
Net cash provided by (used in) financing activities was ($2.6) million and $20,000 for the three months ended March 31, 2009 and 2008, respectively. Net cash used in financing activities for the three months ended March 31, 2009 reflects stock repurchases of $2.6 million. Net cash provided from financing activities for the three months ended March 31, 2008 reflects $61,000 from proceeds from stock option exercises partially offset by remaining costs of $10,000 from our IPO and $29,000 of payments made on a capital lease.
Read the The complete ReportRBCN is in the portfolios of Ron Baron of Baron Funds.
RUBICON TECHNOLOGY is an advanced electronic materials provider that develops manufactures and sells monocrystalline sapphire and other innovative crystalline products. Rubicon's products are used in light emitting diodes and blue laser diodes for solid state lighting and electronics applications in radio frequency integrated circuits and in products for military aerospace sensor and other applications. Rubicon is headquartered in Franklin Park Illinois. RUBICON TECHNOLOGY, INC. has a market cap of $183.6 million; its shares were traded at around $9.16 with and P/S ratio of 4.9.
Highlight of Business Operations:
General and administrative expenses. G&A expenses were $1.1 million for the three months ended March 31, 2009 and $1.9 million for the three months ended March 31, 2008, a decrease of $800,000. The decrease was primarily due to $398,000 from lower bonus costs due to no performance bonus anticipated for 2009, lower bad debt expense of $148,000 on collection of an over 90 day past due receivable, and $36,000 in lower recruiting costs. In addition, follow-on public offering costs of $181,000 were incurred in 2008 but not in 2009.As of March 31, 2009, we had cash and short term investments totaling $39.4 million, including cash of $386,000 held in deposits at a major bank, $5.2 million invested in money market funds and short term investments in commercial paper, state and local bonds, and U.S. treasury securities of $33.8 million. Our long term investments of $12.7 million are municipal auction-rate securities and related put options of $10.7 million and a $2.0 million investment in Peregrine Semiconductor, Corp. (one of our customers) Series D1 preferred stock. In February 2008, we began experiencing failed auctions of our entire auction-rate securities portfolio, resulting in our inability to sell these securities in the short term. All of the auction-rate securities are AAA rated by one or more of the major credit rating agencies and have contractual maturities from 2036 to 2045. Further, all of these securities are collateralized by student loans, and approximately 99% of the collateral qualifies under the Federal Family Education Loan Program and is guaranteed by the US government. We are receiving the underlying cash flows on all of our auction-rate securities. The auction-rate securities have been classified as long-term investments as of March 31, 2009.
$996,000 as sales declined, a decrease in accounts payable of $1.2 million as purchases declined and a decrease in spare parts of $678,000 primarily due to not replenishing stock used due to lower production volumes. We also experienced a decrease in accrued payroll of $301,000 due to pay outs of bonuses earned in the first half of 2008 and a decrease in corporate income and franchise taxes of $183,000 due to payment of 2008 taxes due.
Cash provided by operating activities was $1.7 million for the three months ended March 31, 2008. During such period, we generated net income of $2.3 million and we incurred non-cash expenses of $1.1 million, including depreciation and amortization expense of $945,000 and stock-based compensation expense of $188,000. We experienced an increase during such period in accounts receivable of $928,000 on increased sales, an increase in accounts payable of $696,000 and an increase in spare parts of $448,000 due primarily to an increase in safety stock of raw material and furnace material inventory. We also experienced a decrease in accrued payroll of $518,000 due to pay outs of bonuses earned in 2007 and a decrease in deferred revenue of $250,000 due to recognition of revenue deferred on a contract research project.
Net cash provided by (used in) investing activities was $2.8 million and ($1.8) million for the three months ended March 31, 2009 and 2008, respectively. During the three months ended March 31, 2009, we used approximately $456,000 to add crystal growth furnaces and approximately $57,000 to upgrade existing capacity in other areas. This was partially offset by sales of investments of $3.4 million which were used to fund operations, capital spending and our stock repurchases. During the three months ended March 31, 2008, we used approximately $3.1 million to purchase components used to construct additional crystal growth furnaces, approximately $488,000 for infrastructure changes needed to commence operations in our facility in Bensenville, Illinois and approximately $1.1 million to purchase various equipment used to expand our production capacity in support of our sales growth. This was partially offset by sales of investments of $2.8 million. Because of the current economic environment, it is difficult to predict capital expenditures needed to support or enhance our current operations, but we anticipate it will be approximately $10.0 million in 2009. These expenditures will be primarily focused on research and development and cost savings initiatives and will be incurred mostly in the second half of 2009.
Net cash provided by (used in) financing activities was ($2.6) million and $20,000 for the three months ended March 31, 2009 and 2008, respectively. Net cash used in financing activities for the three months ended March 31, 2009 reflects stock repurchases of $2.6 million. Net cash provided from financing activities for the three months ended March 31, 2008 reflects $61,000 from proceeds from stock option exercises partially offset by remaining costs of $10,000 from our IPO and $29,000 of payments made on a capital lease.
Read the The complete ReportRBCN is in the portfolios of Ron Baron of Baron Funds.
