CEOs in Technology

Rubicon Technology, Inc. (NASDAQ:RBCN), a leading provider of sapphire substrates and products to the LED, RFIC, Semiconductor, and Optical industries, today reported financial results for its fourth quarter ended December 31, 2009.

The Company’s revenue increased forty nine percent sequentially to $8.5 million in the fourth quarter driven by strong demand from the LED market. The Company cited improved factory utilization, increased pricing and a shift in product mix as contributors to improved gross margin, which reached twelve percent in the quarter. Diluted loss per share for the fourth quarter was $0.04 compared to $0.10 per share in the previous quarter.

Raja Parvez, President and CEO noted, “Demand from the LED market continues to strengthen, particularly the demand for LED backlighting. With LED backlighting becoming more cost competitive and with the enhanced performance, thin profile and energy efficiency they provide, we expect LED backlighting to continue to rapidly gain market share over traditional backlighting solutions.”

William Weissman, Rubicon’s Chief Financial Officer commented, “With the increasing demand from the LED market, the pricing environment is rapidly improving. Pricing increased approximately seven percent sequentially in the fourth quarter and we expect an increase of at least fifteen percent sequentially in the first quarter of 2010. While pricing is not yet back to pre-recession levels, we are seeing considerable improvement.”

The Company also reported an increase in revenue from large diameter substrates in the quarter. Mr. Parvez continued, “Certain LED chip manufacturers have been adding significant capacity using four inch wafers. In addition, orders for six inch wafers from major LED chip manufacturers for use in R&D have nearly doubled in the quarter.”

First Quarter 2010 Guidance

Commenting on the outlook for the first quarter, Mr. Weissman said, “We estimate revenue for the first quarter will be approximately $10.5 million. We expect continued improvement in profitability in the first quarter with gross margin in the mid-twenties and a return to profitability with an expected diluted earnings per share of approximately $0.03, based on a projected diluted share count of 21.5 million share.”

Conference Call Details

Rubicon will host a conference call at 8:30 a.m. Eastern time on February 9, 2010 to review the highlights of the fourth quarter 2009 results and the first quarter 2010 outlook. The conference call will be available to the public through a live audio web broadcast via the Internet. Log on to Rubicon's website at http://www.rubicon-es2.com/index.html. An audio replay of the call will be available approximately two hours after the conclusion of the call. The audio replay will remain available until 11:59 p.m. February 16, 2010, and can be accessed by dialing (888) 286-8010 or (617) 801-6888 (international). Callers should reference conference ID 78129965. The webcast will be archived on the Company's website.

About Rubicon Technology, Inc.

Rubicon Technology, Inc. is an advanced electronic materials provider that is engaged in developing, manufacturing and selling monocrystalline sapphire and other crystalline products for light-emitting diodes (LEDs), radio frequency integrated circuits (RFICs), blue laser diodes, optoelectronics and other optical applications. The Company applies its proprietary crystal growth technology to produce very high-quality sapphire in a form that allows for volume production of various sizes and orientations of substrates and windows. Rubicon is a vertically-integrated manufacturer with capabilities in crystal growth, high precision core drilling, wafer slicing, surface lapping, large-diameter polishing and wafer cleaning processes, which the Company employs to convert the bulk crystal into products with the quality and precision specified by its customers. The Company is actively developing larger diameter products to support next-generation LED, RFIC and optical window applications.

Further information is available at http://www.rubicon-es2.com.

Forward-Looking Statements

Certain of the statements in this release, particularly those preceded by, followed by or including the words “believes,” “expects,” “anticipates,” “intends,” “should,” “estimates,” or similar expressions, or those relating to or anticipating financial results for periods beyond the end of the fourth quarter of 2009, constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended. For those statements, the company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by us. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, the statements. These risks and uncertainties include managing the expansion of our manufacturing capacity, market acceptance of LED lighting, our ability to adapt to future changes in the LED industry, our successful development and market acceptance of RFIC and other new products, changes in the average selling prices of sapphire products, dependence on key customers, potential disruptions in our supply of electricity, changes in our product mix, our ability to protect our intellectual property rights, the competitive environment, the availability and cost of raw materials, the cost of compliance with environmental standards, the ability to make effective acquisitions and successfully integrate newly acquired businesses into existing operations and other risks and uncertainties described in the company's most recent Form 10-K and other filings with the Securities and Exchange Commission. For these reasons, readers are cautioned not to place undue reliance on the company's forward-looking statements. Any forward-looking statement that the company makes speaks only as of the date of such statement, and the company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data.