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NEWPORT REPORTS OPERATING RESULTS FOR THE SECOND QUARTER AND FIRST HALF OF FISCAL 1992

 NEWPORT REPORTS OPERATING RESULTS FOR THE SECOND QUARTER
 AND FIRST HALF OF FISCAL 1992
 FOUNTAIN VALLEY, Calif., March 16 /PRNewswire/ -- Newport Corp. (NASDAQ: NEWP) today announced second quarter results which for the first time included full consolidation of the company's acquisition of Micro-Contrale S.A., headquartered in Evry, France.
 Second quarter consolidated sales totaled $25,413,000 which included $12,320,000 related to Micro-Controle. Excluding sales contributed by Micro-Controle, sales were $13,093,000 compared with $14,691,000 in the prior year.
 Net income for the period totaled $471,000, equal to 7 cents per share, compared with $1,063,000, or 15 cents per share, for the corresponding 1991 period which was prior to the acquisition. The current quarter includes a pre-tax gain of $480,000 from the sale of securities. The effective tax rate for this year's quarter was 40 percent, compared with 27 percent last year.
 Richard E. Schmidt, chairman and chief executive officer, said: "For the first time, quarterly results included the full consolidation of all the Micro-Controle operations acquired last year. While we are pleased with our progress in integrating the two companies, prolonged economic weakness in both the United States and in Europe has been much more severe than we earlier anticipated. Although we had expected the acquisition to be non-dilutive based upon historical sales performance, at current levels of sales by Micro-Controle, the acquisition is dilutive.
 "Domestic sales including Newport and Klinger (Micro-Controle's U.S. subsidiary), decreased 11 percent on a comparable basis from the prior year, reflecting primarily lower levels of research funding and weakness in the domestic laboratory market which we serve. The shortfall in both domestic and foreign sales is putting pressure on margins. Results also reflected a loss of interest income and substantially higher interest expense due to the acquisition."
 For the first half, consolidated sales advanced to $42,719,000 from $29,554,000 in the prior year primarily as a result of including $16,382,000 for Micro-Controle. Excluding sales contributed by Micro-Controle, sales for the six-month period declined $3,217,000 when compared with the first half of 1991. Net income totaled $626,000, equal to 9 cents per share, as against $1,603,000, or 23 cents per share, one year ago.
 Schmidt continued: "We are working to eliminate duplication of effort and enhance efficiency throughout the combined company. In the United States, we have already created a unified national sales organization for Newport and Klinger and the integration of our European distribution system is moving forward at a rapid pace.
 "We also intend to integrate our product lines and worldwide manufacturing to capitalize on the many potential synergies between Newport and Micro-Controle. For example, we have gained new skills from Micro-Controle in providing engineered solutions that we believe will help expand our customer base in the OEM/industrial area.
 "Entry into the life sciences market continues to be a priority. We have established the U.S. distribution network for our confocal microscope and recently signed an agreement with Olympus, a major German microscope manufacturer, for the European distribution of this product.
 "We expect continued difficult operating conditions in this period of transition. However in the second half, we anticipate some positive effects from the publication of a new Newport catalog, our first in three years. The catalog continues to be a highly effective marketing tool and the major vehicle for the introduction of numerous new products and significant product line enhancements.
 "Despite current challenges, we remain enthusiastic about our long-term opportunity and intend to build further on the significant management, technical and financial strengths of the combined company."
 Newport Corp. is the leading worldwide manufacturer and marketer of precision laboratory equipment for scientists and engineers who develop and apply technology involving lasers and optics. Customers include Fortune 500 corporations, national research laboratories, government and educational institutions and diverse small businesses.
 NEWPORT CORP.
 Consolidated Financial Highlights
 (Amounts in thousands, except per share)
 Quarter ended Jan. 31, Percent
 1992 1991 Change
 Net sales $25,413 $14,691 73 pct.
 Net income 471 1,063 (56) pct.
 Earnings per share $0.07 $0.15 (53) pct.
 Weighted average common
 and equivalent shares 7,050 6,998 1 pct.
 Six months ended Jan 31, Percent
 1992 1991 Change
 Net sales $42,719 $29,554 45 pct.
 Net income 626 1,603 (61) pct.
 Earnings per share $0.09 $0.23 (61) pct.
 Weighted average common
 and equivalent shares 7,050 7,070 0 pct.
 -0- 3/16/91
 /CONTACT: Robert Hewitt, senior VP-finance of Newport Corp., 714-965-5405/
 (NEWP) CO: Newport Corp. ST: California IN: SU: ERN


EH-KJ -- LA009 -- 8115 03/16/92 08:33 EST
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Date:Mar 16, 1992
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