In a release on
The Company reported progress in growing the wafer side of its business. They received their first production order for their recently introduced patterned sapphire substrates which will be delivered in the second quarter. They also received their first production order of four-inch polished wafers which started in the latter part of the first quarter.
However, costs in the wafering operations were high in the quarter resulting in an increase in pre-tax loss from
The Company's net loss in the first quarter was
Second Quarter 2014 Guidance
Commenting on the outlook for the second quarter of 2014, Parvez said, "We expect the LED market to continue to strengthen in the second quarter resulting in some pricing improvement, particularly for four-inch material."
Parvez continued, "Core sales volumes in the second quarter will decline somewhat as we have exhausted our excess boule inventory. We also believe we will see meaningfully higher wafer revenue in the second quarter which will improve utilization but, in the near- term, will not improve margins. With reduced core revenue offsetting increased wafer revenue, we expect total revenue in the second quarter to be similar to the first quarter. We expect our loss per share in the second quarter to be between
Parvez said, "We are building momentum in the wafer business and with increasing volume and experience, and as customer specifications are defined, we will reduce our idle plant costs and our wafer product cost. The higher wafer sales mix will allow us to generate significant growth without adding crystal growth capacity and improve margins as our utilization and efficiency increase."
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In a release on