News

2 December 2008

 

Rubicon amends Peregrine agreement to provide relief

Rubicon Technology Inc of Franklin Park, IL, USA, which makes sapphire substrates and products for the LED, RFIC, semiconductor and optical industries, has amended its sapphire supply agreement with its key silicon-on-sapphire (SoS) RFIC customer, Peregrine Semiconductor Corp of San Diego, CA, USA.

Peregrine’s obligation to purchase material from Rubicon in 2008 and first-half 2009 has been replaced by a multi-year agreement under which Peregrine has committed to source at least 50% of its sapphire purchases from Rubicon through 2011.

“This amendment to our agreement provides some relief to our customer as they work through their inventory and re-affirms our long-term position as a key supplier to this global market,” says Rubicon’s CEO Raja Parvez. Following nearly $7m of order push-outs from 2008 into first-half 2009 (including $4.3m of SoS substrates for Peregrine), at the end of October Rubicon reported third-quarter 2008 revenue up just 2% to $11.8m (down on original guidance of $12.5m) and lowered Q4/2008 guidance from $8-8.5m to just $4-6m.

Rubicon also says that it has participated in Peregrine’s recent financing round, purchasing $2m in the firm’s preferred stock. “Our strong financial position provides us the flexibility to reinforce our relationship with Peregrine through this investment, validating the strength of our valued business partnership as industry-leading innovators, and demonstrating our commitment and belief in the long-term growth opportunities in the global SoS RFIC market,” adds Parvez.

See related items:

Rubicon slashes Q4 revenue guidance; expects loss

Peregrine cuts off sapphire deliveries due to falling consumer electronics demand

Sapphire substrate market to grow at 21% to $400m by 2012

Search: Rubicon Sapphire substrates Peregrine

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