WASHINGTON (dpa-AFX) - Rubicon Technology Inc. (RBCN), Wednesday lowered its earnings guidance range for the second quarter, to reflect higher tax rate as the company will begin accruing for federal income tax beginning the second quarter.
Rubicon currently expects second-quarter earnings to be $0.53 to $0.55 per share, compared to previously provided estimate of $0.82 to $0.86 per share, as the company will begin accruing for federal income tax beginning the second quarter.
Analysts polled by Thomson Reuters currently expect earnings of $0.74 per share for the second quarter.
The company had provided the previous earnings guidance of $0.82 to $0.86 per share on a tax rate of 7 percent, but while providing it the management indicated that a determination might be made to begin accruing for federal income tax as soon as the second quarter due to a number factors, including the increase in earnings.
Rubicon's Chief Financial Officer William Weissman confirmed that the company will begin accruing for federal income tax beginning the second quarter of this year, which will bring the company's effective tax rate up to about 40 percent for the second quarter and for the remainder of this year.
According to the company, it is having another solid quarter and estimates that revenue in the second quarter should come in at the high end of the $40 million and $43 million range of its previously provided guidance.
Analysts currently expect revenues of $43.03 million for the second quarter.
In addition, Rubicon also confirmed that the projected effective tax rate for 2012 remains at 30 to 35 percent
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