US-based sapphire substrate firm, Rubicon Technology, has announced financial performance for first-quarter 2011. Compared with the previous quarter, revenues increased to US$37.97 million with diluted earnings per share (EPS) of US$0.80 and an astonishing gross margin of 63%. Forecasting the performance for the second quarter, Rubicon said revenues will likely increase but gross margin might contract due to the falling prices for sapphire substrates.

Taiwan-based sapphire substrate makers also predict the prices to fall in second quarter, but revenues will continue to show an upward trend, according to industry sources in Taiwan. USI Optronics (USIO), a Taiwan-based sapphire ingot producer, stated their prices have been less solid than previous quarters due to low penetration of LED TV, but USIO currently has clear order visibility, and will run at full capacity until end of June 2011.

Wafer Works, a Taiwan-based wafer firm which also produces sapphire substrates, announced April revenues of NT$71 million, a slight 5.3% decrease from March revenues. Capacity expansion has been planned to meet anticipated growing demand at the downstream end, said Wafer Works.