NEWP ($21.50--$24-$22) profits up 36 pct, reports raft of charges
(UPDATE: Changes dateline, previous IRVINE, Calif., adds forecast and charges)
NEW YORK, July 18 (Reuters) - Newport Corp. (NasdaqNM:NEWP - news), which makes products for testing and assembling fiber-optic and semiconductors, on Wednesday said profits rose about 36 percent, meeting estimates, but added a steep downturn in orders would force it to take charges as it reduces costs.
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Irvine, California-based Newport, which on June 9 said it would trim jobs and take charges to reduce costs, said it earned $12.1 million, or 32 cents per share, in the second quarter, compared with $8.9 million, or 26 cents per share in the year-ago quarter.
Analyst had on average expected the company to earn between 30 and 33 cents, with a mean of 32, according to Wall Street research firm Thomson Financial/First Call.
Looking ahead to the third quarter, Newport said it would earning between $1.10 and $1.15 in the year, excluding items.
Analysts had projected the company would earn between $1.03 and $1.20 per share, with a mean of $1.12 per share, in the year.
The company also said it will post charges of $1 million to $1.5 million for severance costs, and $6 million to $10 million for asset write-downs in the third quarter.
Third quarter revenues should be slightly less than $73.6 million, and full-year revenues should be about $350 million to $360 million, Newport said.
Newport's shares closed off 9.4 percent at $21.98. Shares are trading at a fraction of their 52-week highs of $192.06. |
