Rubicon Technology, Inc. (RBCN) saw its loss narrow to $24.80 million, or $0.94 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $48.20 million, or $1.84 a share.
Revenue during the quarter surged 32.55 percent to $7.09 million from $5.35 million in the previous year period.
Operating loss for the quarter was $24.77 million, compared with an operating loss of $47.37 million in the previous year period.
Bill Weissman, the Company's chief executive officer, said, "While margin pressure in the LED and mobile device segments of the sapphire market continue to be severe, there remains good margin opportunity in the optical and industrial segments. We believe that the actions we are taking will improve our operating results, strengthen our cash position and allow us to grow in strategic markets that are better aligned with our strengths while offering stronger margin potential. Once the changes are fully implemented, our revenue will be smaller for a period of time, but the optical and industrial sapphire markets are growing with potential new applications for sapphire emerging."
Operating cash flow remains negative
Rubicon Technology, Inc. has spent $11.48 million cash to meet operating activities during the nine month period as against cash outgo of $11.90 million in the last year period.
Cash flow from investing activities was $8.50 million for the nine month period, up 19.65 percent or $1.39 million, when compared with the last year period.
The company has spent $1.51 million cash to carry out financing activities during the nine month period as against cash inflow of $0.01 million in the last year period.
Cash and cash equivalents stood at $16.37 million as on Sep. 30, 2016, down 23.60 percent or $5.06 million from $21.43 million on Sep. 30, 2015.
Working capital drops significantly
Rubicon Technology, Inc. has witnessed a decline in the working capital over the last year. It stood at $30.99 million as at Sep. 30, 2016, down 51.45 percent or $32.84 million from $63.83 million on Sep. 30, 2015. Current ratio was at 7.21 as on Sep. 30, 2016, down from 15.01 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 79 days for the quarter from 297 days for the last year period. Days sales outstanding went down to 64 days for the quarter compared with 97 days for the same period last year.
Days inventory outstanding has decreased to 26 days for the quarter compared with 225 days for the previous year period. At the same time, days payable outstanding went down to 12 days for the quarter from 25 for the same period last year.
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