NEWP--Newport Corp. Acquires Design Technology Corporation to Enhance Fiber Optics Automation, Robotics and Testing Capabilities
BUSINESS WIRE - February 02, 2001 15:19
IRVINE, Calif., Feb 2, 2001 (BUSINESS WIRE) -- Newport Corp. (Nasdaq:NEWP) today announced that it has acquired Design Technology Corp., a privately held systems integrator specializing in the use of robotics and flexible automation solutions for manufacturing processes, including those required in the assembly and testing of fiber optic components.
The transaction will be accounted for as a stock purchase, and terms were not disclosed. Design Technology(R) is expected to add $5 million to $10 million to Newport's 2001 sales and to be mildly accretive to earnings per share.
Design Technology, based in Billerica, Mass., brings three decades of experience in the development of specialized machinery and automation systems for high-volume production applications in a wide variety of industries. The firm's expertise includes process development, handling solutions for difficult materials, and high-volume precision robotic assembly systems.
"Design Technology provides unique, proprietary solutions to its customers' toughest process automation and production problems," said Robert G. Deuster, Newport's chairman and chief executive officer. "Design Technology's success stories range from high-volume environmental testing of electronic components to process manufacturing equipment involving the handling of fiber and delicate, flexible materials. These capabilities perfectly complement Newport's core photonics packaging, inspection and test equipment strengths, and enhance our capacity and capability to provide more integrated high throughput solutions to our customers."
Dan Petrescu, vice president and general manager of Newport's Fiber Optics and Photonics Division, added: "With this acquisition, we are building upon our recent addition of Unique Equipment and expanding our slate of robotic assembly and advanced automation technology and capacity to address more integrated and industrialized solutions. This further enhances our ability to provide customers with next-generation automated assembly, test and materials handling equipment, and expands our engineering and service presence into the eastern half of North America to provide stronger localized support. Design Technology's vast experience in industrial production machinery will also add to our abilities to serve customers' growing needs for complete 24/7 operation of assembly and test equipment."
Marvin Menzin, president of Design Technology, noted: "We are extremely excited to become part of the growing Newport team addressing these very challenging automation applications in the fiber optics industry. Our well-established Controlled Development(TM) process, which methodically generates and validates multiple solution concepts for each project, will enable Newport customers to explore various alternatives to their automation needs before spending significantly on automation equipment. This approach substantially reduces the risk associated with introducing automation into new or unproven process areas and assures a successful outcome."
Newport Corp. 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 in this news release are forward-looking statements that involve a number of risks and uncertainties. As discussed in Newport's Annual Report on Form 10-K for the year ended Dec. 31, 1999, assumptions relating to the foregoing involve judgments with respect to, among other things, the ability of Newport to successfully integrate Design Technology with Newport's other operations; the contributions of Design Technology to Newport's fiber optics business strategy; future economic, competitive and market conditions, including those in Europe and Asia, and those related to Newport's strategic markets, particularly the fiber optics and photonics market; whether its products, particularly those targeting the company's strategic markets, will continue to achieve customer acceptance; and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of Newport. 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 such events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
CONTACT: Newport Corp. Charles F. Cargile, 949/253-1273 investor@newport.com Web site: www.newport.com or Pondel/Wilkinson Group Cecilia A. Wilkinson, 310/207-9300 investor@pondel.com
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