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    Andrew Abrams

    Research Analyst at SCMR LLC

    Andrew Abrams's questions to Rubicon Technology (RBCN) leadership

    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.

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    Andrew Abrams's questions to Rubicon Technology (RBCN) leadership • Q3 2015

    Question

    Andrew Abrams from Supply Chain Market Research asked for an update on the PSS sharing partner's timeline for facility usage, the crystal growth utilization rate for Q4, and the expected PSS polishing utilization in Q1.

    Answer

    President and CEO Bill Weissman stated that the timing for the partner to use the facility is uncertain due to market struggles, but Rubicon has already benefited from the knowledge transfer. He confirmed the crystal growth operation will run at 40% capacity in Q4 and projected that PSS polishing utilization would be slightly higher in Q1 2016 as they produce for consignment inventory.

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    Andrew Abrams's questions to Rubicon Technology (RBCN) leadership • Q2 2015

    Question

    Andrew Abrams asked for more details on the new resource-sharing agreement, including process changes and cost implications, and questioned if the pricing pressure from Russian competitors had changed.

    Answer

    President and CEO Bill Weissman explained the agreement provides a lower-cost 4-inch polishing process, which could cut costs in half, in exchange for use of their under-utilized capacity, creating a 'win-win' with no new CapEx. He also stated that while Russian competitors still have a currency advantage, recent market weakness is more a function of soft demand. CFO Mardel Graffy added that the specific accounting for reclassified idle costs is still being finalized.

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