While the LED market in general continues to remain fairly weak

Gross margin in the third quarter increased to 12.3 percent, up from break-even in the prior quarter. The Company’s operating loss for the third quarter was reduced to $1.1 million from $3.1 million in the prior quarter, and earnings per share were $0.01 after recording a foreign currency gain and additional income tax credits.While the LED market in general continues to remain fairly weak, we are seeing signs of improvement, and the led flood light market remains strong. During the current LED industry cycle we continue to focus on enhancing our competitive position by developing new products, adding intellectual property and reducing our cost structure.

Commenting on the outlook for the fourth quarter of 2012, William Weissman, Rubicon’s Chief Financial Officer said, “For the fourth quarter we expect revenue to be similar to that of the third quarter with most of our revenue again coming from six-inch polished wafer sales. Pricing for two-through-four inch cores has not yet started to rebound, so we will likely sell limited volume of these products again in the fourth quarter. Gross margin will likely be in the high single digits as average pricing for six-inch wafers will be somewhat lower in the fourth quarter. The down cycle in the LED market has certainly delayed broader adoption of six inch substrates among LED chip manufacturers, and six-inch usage remains limited at this time. We are now beginning to see some chip manufactures re-engage their development work on six inch and expect strong growth in the six-inch market in the second half of next year. However, in the near term we expect to see some pricing pressure on six-inch given the limited demand and competitors trying to qualify for that business. Consequently, we expect a loss per share between $(0.02) and $(0.05) in the fourth quarter based on 22.5 million shares outstanding and a 50 percent tax benefit.

Wherever there is light, you will also find semiconductor light sources from Osram Opto Semiconductors: in the automotive sector, the entertainment industry and even the security environment. At this year’s electronica fair (booth 107 in Hall A3) the company will therefore be highlighting its role as a complete supplier of semiconductor lighting solutions. This leading international exhibition of components, systems and applications will provide an opportunity to see the new Displix LED for the first time. This led high bay light has been designed specifically for outdoor displays. Osram will also be showcasing the Oslon LX LED, which is intended for daylight running lights for small automobiles, and a prototype of the smallest ever LED for vehicle forward lighting, the Oslon Compact.