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 IRVINE, Calif., Oct. 26 /PRNewswire/ -- Newport Corp. (NASDAQ: NEWP) today reported that operations were essentially at the breakeven level in the third quarter of 1993 before a gain on the sale of securities.
 In January, as previously announced, Newport made the change to a calendar fiscal year from its previous July 31 fiscal year-end. Because prior year financials were stated on the basis of a July 31 year-end, directly comparable quarterly results are not available. This press release presents financial information for the three and nine months ended Sept. 30, 1993, as well as the three and nine months ended Oct. 31, 1992.
 For the third quarter ended Sept. 30, 1993, net income amounted to $417,000, equal to 6 cents per share on sales of $19,067,000. For the three months ended Oct. 31, 1992, the net loss was $713,000 or 10 cents per share, on sales of $21,934,000. Results for the current quarter included a $431,000 gain, net of taxes (equal to 6 cents per share) on the sale of investments.
 For the nine months ended Sept. 30, 1993, Newport posted net income of $936,000, equal to 13 cents per share, on sales of $64,269,000. For the nine months ended Oct. 31, 1992, the net loss was $15,579,000, equal to $2.24 per share, on sales of $67,016,000. The latter period included a one-time $13,795,000 pre-tax restructuring charge against operations.
 Richard E. Schmidt, chairman and chief executive officer, stated: "Operating conditions were difficult in the third quarter. Sales decreased approximately $4 million from the second quarter, with the shortfall about equally attributable to the United States and Europe. In view of the challenging sales climate, we believe that Newport performed well, reflecting our successful cost cutting efforts as part of our now completed restructuring program.
 "We continue to work very hard to lower costs, increase productivity, and further enhance quality and service for our customers. In this respect, we're using the techniques of industrial process re- engineering to improve our operations and to eliminate non-essential, non-productive activity.
 "Newport's balance sheet continues to improve. Since Dec. 31, 1992, inventories have been reduced $2,695,000; the current ratio has increased to 1.88:1; and total debt, net of cash has been reduced $2,425,000 from $24,029,000 to $21,604,000 as of Sept. 30, 1993."
 Schmidt concluded: "Although the company has experienced continued success in cost control, sales in the second half of 1993 have been below expectations. While the company has improved its backlog, sales and order rates thus far in the fourth quarter remain under pressure. Both our research laboratory and industrial markets are challenging due to continued slow economic conditions which are especially evident in Europe.
 "In this environment, cost control is a high priority. We're also dedicated to product development and enhancement that will support our entry into attractive niche markets which are primarily related to high growth, high technology industries."
 Newport Corp. is a leading worldwide manufacturer and marketer of precision laboratory equipment for scientists and engineers who develop and apply technology involving lasers and optics. The Micro-Controle acquisition further enhances Newport's precision positioning capabilities for high technology industries including semiconductor manufacturing, telecommunications, and analytical instrumentation. Customers include Fortune 500 corporations, national research laboratories, government, and educational institutions.
 Consolidated Financial Highlights
 (Amounts in thousands except per share)
 Three Months Ended Nine Months Ended
 9/30/93 10/31/92 9/30/93 10/31/92
 Net sales $19,067 $21,934 $64,269 $67,016
 Net income (loss) 417 (713) 936 (15,579)
 Earnings (loss) per share $0.06 ($0.10) $0.13 ($2.24)
 Weighted average shares 7,030 6,966 7,028 6,966
 -0- 10/26/93
 /CONTACT: Robert C. Hewitt, senior VP-finance, 714-253-1405/

CO: Newport Corp. ST: California IN: CPR SU: ERN

MF-LS -- LA016 -- 6715 10/26/93 08:33 EDT
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Publication:PR Newswire
Date:Oct 26, 1993

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