Andrew Abrams's questions to Rubicon Technology (RBCN) leadership • Q1 2016
Question
Andrew Abrams of SCMR LLC inquired about Rubicon's future strategy for four-inch core sales if pricing remains flat, the potential for linearity in the PSS business after the projected Q3 ramp, and the remaining opportunities for cost reductions in crystal growth and polishing operations.
Answer
President and CEO Bill Weissman responded that core sales volume would likely remain consistent in the near term to retain key talent and maintain readiness for new opportunities. He anticipates a significant step-up in PSS business in the latter half of the year, which would likely max out current capacity. Weissman also confirmed that the primary focus for cost reduction remains on the polishing operations in Malaysia, supplemented by ongoing improvements in crystal growth yields and SG&A.