Rubicon Plans To Shut Down Malaysia Facility - Quick Facts

(RTTNews) - Rubicon Technology, Inc. (RBCN), a provider of sapphire substrates and products to the LED, optical and semiconductor industries, announced Tuesday its plans to cease all production activities and shut down its Penang, Malaysia facility. The decision was made in order for the company to focus on the optical and industrial sapphire market for the foreseeable future.

Production activities at the Penang facility are expected to cease by November 30, 2016, with the shutdown of the facility to be completed by the end of the year. The company noted that its Malaysia facility has been primarily engaged in producing polished and patterned substrates for the LED market.

According to the company, its high quality crystal, strong and developing U.S. customer base, and optical finishing capability are strong differentiators in the optical and industrial sapphire market. The company believes that there are emerging applications in that market which will drive revenue and margin growth in coming years.

Bill Weissman, the Company's CEO, said, "The sapphire industry continues to be very challenging with pricing for LED sapphire products continuing to decline throughout this year. G....While we made significant progress on that front, the continual decline of prices has made the prospects of becoming profitable in the LED substrate market unlikely for the foreseeable future. As a result, we have decided to focus on the optical and industrial sapphire market at this time."