Newport Reports Second Quarter and Six-Month Results; Fiber Optic Communications/Semiconductor Sales and Orders Increase to Record Levels
IRVINE, Calif.--(BUSINESS WIRE)--July 17, 2000--Newport Corporation (Nasdaq:NEWP) today reported record performance for the second quarter and six-month periods ended June 30, 2000, marking significant year-over-year improvements in and continued sequential quarterly sales increases to its key markets.
For the 2000 second quarter, net income doubled to $4.2 million, or $0.14 per diluted share, from $2.1 million, or $0.07 per diluted share, in the corresponding prior-year quarter. Sales for the 2000 second quarter rose 45 percent to $51.7 million from $35.6 million a year ago.
For the first half of 2000, net income totaled $7.2 million, or $0.24 per diluted share, on net sales of $97.4 million, compared with net income of $3.0 million, or $0.11 per diluted share, on net sales of $65.0 million for the same period in 1999.
On May 31, 2000, Newport effected a three-for-one stock split of its common stock. Share and per share information for all periods presented have been restated to reflect the stock split.
Sales to the fiber optic communications market in the 2000 second quarter increased 175 percent to $21.6 million compared with $7.9 million in the corresponding prior-year period. Sequentially, sales to the fiber optic communications market climbed 29 percent above the first quarter of 2000, marking the fifth consecutive quarter in which the company has experienced sequential sales growth in this market.
Semiconductor equipment market sales rose 149 percent to $7.3 million from $2.9 million in the 1999 second quarter and were 28 percent higher than the 2000 first quarter.
"Newport's strong performance in the second quarter of 2000 is a reflection of robust growth in the fiber optic communications and semiconductor equipment markets," said Robert G. Deuster, chairman and chief executive officer. "Our rising order rates in both of these markets reflect the results of our efforts to take advantage of industry estimates of continued rapid growth for these markets."
Newport's sales to other industrial metrology markets in the 2000 second quarter fell 9 percent to $13.2 million from $14.5 million the year before, reflecting ongoing weakness in the computer peripherals market. Sales to the aerospace and research market were $9.6 million, a 7 percent decline from the corresponding period in 1999.
Orders for the quarter totaled $89.6 million, up 138 percent over 1999's second quarter. Orders from the fiber optic communications market increased 319 percent over the prior-year period to $42.5 million, while orders for the semiconductor equipment market rose 538 percent to $21.3 million.
For the six-month period ended June 30, 2000, fiber optic communications sales rose 186 percent to $38.3 from $13.4 million, while semiconductor equipment revenue climbed 150 percent to $13.0 million over the first half of 1999. Orders for the same period in the fiber optic communications market were up 328 percent to $66.0 million from $15.4 million in the corresponding prior-year period. Semiconductor equipment orders climbed 467 percent to $28.9 million compared with $5 million in the corresponding prior-year period.
Newport Corporation is a global leader in the design, manufacture and marketing of high precision components, instruments and integrated systems to the fiber optic communications, semiconductor equipment, computer peripherals and scientific research markets. The company's innovative products are designed to enhance productivity and capabilities of test and measurement and automated assembly for precision manufacturing, engineering and research applications. Customers include Fortune 500 corporations, technology companies and research laboratories in commercial, academic and government sectors worldwide.
The statements by Robert G. Deuster and the above statements contained in this business outlook are forward-looking statements that involve a number of risks and uncertainties. In addition to factors discussed above, other factors that could cause actual results to differ materially are the following: business and economic conditions and growth in the fiber optic communications and semiconductor equipment industry in various geographic regions; changes in customer order patterns; acceptance of the company's new products by its customers; pricing pressures; development and timing of introduction of new products; continued success in technological advances, including development and implementation of strategic products for specific market segments; excess or shortage of manufacturing capacity; the availability and cost of key components we use to manufacture our products; the ability to successfully integrate and operate any acquired businesses; litigation involving intellectual property and other issues; and other risk factors listed from time to time in the company's SEC reports.
Although Newport believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the results contemplated in forward-looking statements will be realized. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by Newport or any other person that Newport's objectives or plans will be achieved. Newport undertakes no obligation to revise the forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
NEWPORT CORPORATION
Consolidated Income Statement
(In thousands, except per share amounts and percentages)
(Unaudited)
Three Months Ended
June 30,
2000 1999 % Chg
Net Sales:
Industrial and Scientific
Technologies $ 33,002 $ 25,145 31
Fiber Optics and Photonics 16,904 7,906 114
Video Metrology 1,836 2,525 (27)
Total net sales 51,742 35,576 45
Cost of sales 28,794 19,716
Gross profit 22,948 15,860 45
Selling, general and
administrative expense 11,403 9,390
Research and development
expense 5,115 3,220
Income from operations 6,430 3,250 98
Income from operations % 12.4 9.1
Interest expense 611 457
Other income (expense), net 12 60
Income before income taxes 5,831 2,853 104
Income tax provision 1,632 798
Net income $ 4,199 $ 2,055 104
Net income per share:
Basic $ 0.15 $ 0.08 88
Diluted $ 0.14 $ 0.07 100
Number of shares used to
calculate net income
per share:
Basic 28,208 27,239
Diluted 30,520 28,009
-0-
Six Months Ended
June 30,
2000 1999 % Chg
Net Sales:
Industrial and Scientific
Technologies $ 63,064 $ 45,522 39
Fiber Optics and Photonics 30,754 13,880 122
Video Metrology 3,536 5,622 (37)
Total net sales 97,354 65,024 50
Cost of sales 54,397 36,355
Gross profit 42,957 28,669 50
Selling, general and
administrative expense 22,090 17,285
Research and development
expense 9,648 6,226
Income from operations 11,219 5,158 118
Income from operations % 11.5 7.9
Interest expense 1,179 905
Other income (expense), net (25) (130)
Income before income taxes 10,015 4,123 143
Income tax provision 2,804 1,154
Net income $ 7,211 $ 2,969 143
Net income per share:
Basic $ 0.26 $ 0.11 136
Diluted $ 0.24 $ 0.11 118
Number of shares used to
calculate net income
per share:
Basic 27,984 27,230
Diluted 30,338 28,123
-0-
Condensed Consolidated Balance Sheet
(In thousands) June 30, December 31,
2000 1999
(Unaudited)
ASSETS
Cash and cash equivalents $ 3,681 $ 2,721
Customer receivables, net 38,733 32,239
Other receivables 1,162 684
Income tax receivable 4,819 --
Inventories 44,771 36,386
Deferred tax assets 2,585 2,626
Other current assets 2,927 2,484
Total current assets 98,678 77,140
Investments and other assets 9,093 8,461
Property, plant and equipment, net 26,553 25,738
Goodwill, net 10,145 10,914
------- -------
$144,469 $122,253
-0-
June 30, December 31,
2000 1999
(Unaudited)
LIABILITIES AND EQUITY
Accounts payable $ 12,768 $ 6,816
Accrued payroll expenses 7,916 5,536
Line of credit 12,300 10,000
Current portion of long-term debt 5,644 4,645
Other current liabilities 3,733 3,971
Total current liabilities 42,361 30,968
Long-term debt 9,844 12,715
Other liabilities 1,407 1,407
Stockholders' equity 90,857 77,163
------- -------
$144,469 $122,253
Note: On May 31, 2000, Newport effected a three-for-one stock split of its common stock. Share and per share information for all periods presented have been restated to reflect the stock split.
CONTACT:
Newport Corporation
Robert C. Hewitt, 949/253-1405
investor@newport.com
www.newport.com
or
Pondel/Wilkinson Group
Cecilia A. Wilkinson, 310/207-9300
investor@pondel.com
KEYWORD: CALIFORNIA
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