IRVINE, Calif., Jan. 7, 2002 (PRIMEZONE) -- Newport Corporation (Nasdaq:NEWP) today announced that it expects earnings per share for its fourth quarter ended December 31, 2001 to be slightly better than current analysts' consensus as reported by First Call of a one cent loss. The company also announced that it expects sales for its fourth quarter of 2001 to be approximately 10% below the current analysts' consensus of $56 million. Newport had previously indicated its expectation for breakeven earnings on sales in the range of $55 to $58 million.
"The timing of shipments to a few of our fiber optic and semiconductor customers, which were originally scheduled for late-December of 2001, were shifted into the first quarter of 2002," said Robert G. Deuster, Newport's chairman, president and chief executive officer. "In addition, due to the general recessionary environment, December sales into the research industry and other general industry end-markets were less than we had anticipated. We are pleased to be able to deliver earnings per share that meets the commitments we have made, despite the push-outs by a narrow segment of customers. Clearly, our cost reduction initiatives have begun to payoff and have lowered our break-even sales level."
Newport also said that net orders, after adjusting for cancellations, were expected to increase approximately 25% from the $25 million recorded in the third quarter of 2001. As expected, new orders received, before adjusting for cancellations, were basically flat as compared with the $38 million recorded in the third quarter of 2001.
"Our order capture rates appear to have stabilized a bit in the fourth quarter as reflected in the sequentially flat new order intake levels as compared with the third quarter of 2001, and we experienced a significantly lower amount of order cancellations during the quarter," Deuster said. "This supports our belief that during the second-half of 2001 we reached the bottom of the cycle for the fiber optic and semiconductor equipment markets. In addition, we are increasingly optimistic that order rates will increase throughout 2002."
Newport will report complete results for its 2001 fourth quarter and full year on Tuesday, January 29, 2002. A year ago, Newport reported 2000 fourth quarter net income of $14.3 million, or $0.38 per share, on net sales of $96.8 million. For the full 2000 year, Newport's net income totaled $36.3 million, or $1.01 per share, on net sales of $284.0 million. The year ago results reflect the proforma effect for Newport's acquisition of Kensington Laboratories, which was accounted for as a pooling of interests.
About Newport Corporation
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, aerospace and research and general metrology markets. The company's innovative products are designed to enhance productivity and capabilities in 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.
This news release contains forward-looking statements, including without limitation the statements regarding fourth quarter 2001 operating results and current and future order activity, as well as the statements made by Robert G. Deuster, that are based on current expectations and involve risks and uncertainties. Without limiting the generality of the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate" or "continue" or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. As discussed in Newport's Annual Report on Form 10-K for the year ended December 31, 2000 and its subsequent SEC reports, assumptions relating to the foregoing involve judgments and risks with respect to, among other things, potential order cancellations and push-outs, potential product returns, future economic, competitive and market conditions, including those in Europe and Asia and those related to its strategic markets, whether its products, particularly those targeting the company's strategic markets, will continue to achieve customer acceptance, the ability of Newport to successfully integrate its acquired and to-be-acquired companies and the contributions of those companies to Newport's operating results, risks associated with terrorist activity and resulting economic uncertainty, the risks of power interruptions and electricity rate increases 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 events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.