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Please direct questions regarding Newport's financial performance to:
Chuck Cargile
Senior Vice President and CFO
Tel: 949-863-3144
Investor Release
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| Newport Corporation Reports Third Quarter and Year-to-Date 2009 Results |
- Cost Reduction Actions Provide Positive Impact- -Accretive Contribution from New Focus(TM) Acquisition- The company noted the following highlights regarding its third quarter:
-- Achieved Commenting on these highlights, GAAP Net Loss When calculated in accordance with GAAP, Newport reported a net loss in the third quarter of 2009 of Non-GAAP Net Income On a non-GAAP basis, excluding certain income and expense items that the company's management considers to be outside of its core operating results, Newport would have reported net income in the third quarter of 2009 of Cash Generation Newport reported that the company's cash, cash equivalents and marketable securities totaled Cost Reduction and Efficiency Improvement Initiatives Newport noted that its previously announced cost reduction actions have reduced the company's operating expense base significantly, and remain on target for completion at the end of 2009. On a non-GAAP basis, excluding expenses incurred in both periods related to the previously announced cost reduction efforts and for acquisition, integration and divestiture related activities, and certain other expenses, all of which the company's management considers to be outside of its core operating results, the company highlighted that selling, general and administrative expenses would have declined by Integration of New Focus On Sales and Orders Sales in the third quarter of 2009 totaled The company's sales and orders by end market were as follows:
(In thousands,
except percentages,
unaudited) Percent
Change vs.
Three Months Ended Nine Months Ended Prior Period
------------------ ----------------- --------------
October September October September Third Nine
3, 27, 3, 27, Quarter Months
2009 2008(2) 2009 2008(2) 2009 2009
---- ------ ---- ------ ---- ----
------------
Sales by End
Market
------------
Scientific
research,
aerospace and
defense/
security $34,088 $34,103 $103,365 $108,199 0.0% -4.5%
Microelectronics
(1) 19,846 30,460 60,137 104,703 -34.8% -42.6%
Life and
health
sciences 21,293 22,899 65,411 67,201 -7.0% -2.7%
Industrial
manufacturing
and other 13,090 17,564 36,481 57,830 -25.5% -36.9%
------ ------ ------ ------
Total $88,317 $105,026 $265,394 $337,933 -15.9% -21.5%
======= ======== ======== ========
-------------
Orders by End
Market
-------------
Scientific
research,
aerospace and
defense/
security $38,048 $37,517 $102,849 $109,929 1.4% -6.4%
Microelectronics
(1) 22,726 26,921 50,944 104,696 -15.6% -51.3%
Life and
health
sciences 17,878 21,414 60,403 68,516 -16.5% -11.8%
Industrial
manufacturing
and other 13,931 18,577 39,173 56,339 -25.0% -30.5%
------ ------ ------ ------
Total $92,583 $104,429 $253,369 $339,480 -11.3% -25.4%
======= ======== ======== ========
Notes:
1. Sales to and orders from semiconductor equipment and solar cell
manufacturing customers are included in the company's Microelectronics
end market.
2. Certain prior period amounts have been reclassified to conform to the
current period presentation.
The company noted the following regarding its sales and orders results:
-- Overall, sales and orders were lower in the third quarter of 2009
compared with the third quarter of 2008, particularly in the
Microelectronics market and the Industrial Manufacturing and Other
markets, reflecting the continuing weak macroeconomic environment.
-- Sales to and orders from customers in the
Mr. Phillippy concluded, "We expect the recent improvement in market activity to continue in the near term, which, coupled with historical seasonal strength, should enable us to grow our revenue sequentially in the fourth quarter of 2009. While we are encouraged by the recent increase in orders, the extent and duration of a macroeconomic recovery remain uncertain. As such, we will continue to work aggressively to ensure that our organization is streamlined and our business is positioned well to optimize our operating performance in the current business environment and provide meaningful profit leverage as market conditions improve." ABOUT INVESTOR CONFERENCE CALL SAFE HARBOR STATEMENT This news release contains forward-looking statements, including without limitation statements regarding the expected timing of completion of the company's operational consolidation and other cost reduction initiatives, the expected timing of completion of the company's integration of New Focus, the expectation of American Recovery and Reinvestment Act funds reaching research customers, and its expectations regarding sequential revenue growth in the fourth quarter of 2009. 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. Assumptions relating to the foregoing involve judgments and risks with respect to, among other things, Newport's ability to successfully integrate the New Focus business, the strength of business conditions in the industries Newport serves, particularly the semiconductor industry; Newport's ability to successfully penetrate and increase sales to its targeted end markets, particularly to photovoltaic customers and the life and health sciences market; the levels of private and governmental research funding worldwide; potential order cancellations and push-outs; potential product returns; future economic, competitive and market conditions, including those in
Newport Corporation
Consolidated Statements of Operations
(Unaudited)
Three Months Ended Nine Months Ended
(In thousands, ------------------ -----------------
except per share October 3, September 27, October 3, September 27,
amounts) 2009 2008 2009 2008
---- ---- ---- ----
Net sales $88,317 $105,026 $265,394 $337,933
Cost of sales 53,097 65,424 163,764 204,923
------ ------ ------- -------
Gross profit 35,220 39,602 101,630 133,010
Selling, general
and administrative
expenses 27,942 28,205 82,140 88,088
Research and
development expense 9,339 11,340 27,704 35,125
Loss on disposal of
diode laser assets
and related costs 285 - 4,355 -
--- - ----- -
Operating income
(loss) (2,346) 57 (12,569) 9,797
Recovery (write-down)
of note receivable and
other amounts related
to previously
discontinued
operations, net 200 743 192 (6,317)
Interest and other
expense, net (2,024) (2,100) (6,339) (5,261)
------ ------ ------ ------
Loss before income
taxes (4,170) (1,300) (18,716) (1,781)
Income tax
(benefit)
provision, net (652) 1,086 (1,237) 2,144
---- ----- ------ -----
Net loss $(3,518) $(2,386) $(17,479) $(3,925)
======= ======= ======== =======
Net loss per share:
Basic $(0.10) $(0.07) $(0.48) $(0.11)
Diluted $(0.10) $(0.07) $(0.48) $(0.11)
Shares used in the
computation of net
loss per share:
Basic 36,214 36,078 36,150 36,208
Diluted 36,214 36,078 36,150 36,208
Other operating data:
New orders received
during the period $92,583 $104,429 $253,369 $339,480
Backlog at the end of
period scheduled to
ship within 12 months $95,003 $118,709
Newport Corporation
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
(In thousands,
except per share
amounts) Three Months Ended Nine Months Ended
------------------ -----------------
October 3, September 27, October 3, September 27,
2009 2008 2009 2008
---- ---- ---- ----
Selling, general and
administrative
expenses (SG&A):
SG&A - GAAP $27,942 $28,205 $82,140 $88,088
Expenses relating
to cost reduction
actions (2,277) (1,556) (5,646) (1,556)
Costs related to
acquisition,
integration and
divestiture
activities (1,052) - (1,473) -
Duplicate rent
related to new
facility (525) - (613) -
Diode laser
transfer pricing
adjustments - - - (178)
Other costs, primarily
legal fees associated
with the recovery of
assets related to
previously discontinued
operations - (269) - (269)
- ---- - ----
Total non-GAAP
adjustments (3,854) (1,825) (7,732) (2,003)
------ ------ ------ ------
Non-GAAP SG&A $24,088 $26,380 $74,408 $86,085
======= ======= ======= =======
Net income (loss):
Net loss - GAAP $(3,518) $(2,386) $(17,479) $(3,925)
Expenses relating
to cost reduction
actions 2,516 2,167 6,508 2,167
Non-cash interest
expense on
convertible
subordinated notes 1,148 1,321 3,416 3,929
Costs related to
acquisition,
integration and
divestiture
activities 1,437 - 1,859 -
Write-down (recovery)
of note receivable
and other amounts
related to previously
discontinued
operations, net (200) (743) (192) 6,317
Loss on disposal of
diode laser assets
and related costs 285 - 4,355 -
Operating loss from
diode laser
operations - 2,278 4,290 2,456
Duplicate rent
related to new
facility 525 - 613 -
Other costs, primarily
legal fees associated
with the recovery of
assets related to
previously discontinued
operations - 269 - 269
Income tax provision
(benefit) on non-GAAP
adjustments (125) 102 (915) (199)
---- --- ---- ----
Total non-GAAP
adjustments, net of
tax 5,586 5,394 19,934 14,939
----- ----- ------ ------
Non-GAAP net income $2,068 $3,008 $2,455 $11,014
====== ====== ====== =======
Net income (loss)
per diluted share:
Net loss - GAAP $(0.10) $(0.07) $(0.48) $(0.11)
Total non-GAAP
adjustments 0.16 0.15 0.55 0.41
---- ---- ---- ----
Non-GAAP net income
per diluted share $0.06 $0.08 $0.07 $0.30
===== ===== ===== =====
Management considers the items excluded from the GAAP measures as shown
above to be outside of the company's core operating results.
Specifically, management believes the non-GAAP information provides both
management and investors with a more complete understanding of the
company's underlying operational results and a more meaningful basis for
comparison with the company's historical and expected financial results.
The non-GAAP information is among the budgeting and planning tools that
management uses for forecasting. The presentation of this additional
information is not meant to be considered in isolation or as a substitute
for the company's financial measures prepared in accordance with United
States GAAP.
Newport Corporation
Consolidated Balance Sheets
(Unaudited)
October 3, January 3,
(In thousands) 2009 2009
---- ----
ASSETS
Current assets:
Cash and cash equivalents $91,823 $74,874
Marketable securities 58,222 73,546
Accounts receivable, net 64,501 75,258
Notes receivable, net 2,345 6,610
Inventories, net 96,683 98,833
Deferred income taxes 13,060 13,456
Prepaid expenses and other current assets 14,892 10,740
------ ------
Total current assets 341,526 353,317
Property and equipment, net 53,585 60,245
Goodwill 69,932 68,540
Deferred income taxes 1,920 2,555
Intangible assets, net 29,359 26,696
Investments and other assets 13,295 13,550
------ ------
$509,617 $524,903
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term obligations $9,909 $14,089
Accounts payable 22,289 24,636
Accrued payroll and related expenses 19,088 21,827
Accrued expenses and other current
liabilities 30,284 29,258
------ ------
Total current liabilities 81,570 89,810
Long-term debt 138,928 135,478
Obligations under capital leases, less
current portion 1,289 1,220
Accrued pension liabilities 11,216 10,652
Other liabilities 22,309 22,546
Stockholders' equity 254,305 265,197
------- -------
$509,617 $524,903
======== ========
SOURCE Charles F. Cargile of Newport Corporation, +1-949-863-3144, investor@newport.com; or Dan Peoples of Makinson Cowell (US), +1-858-552-8146 |
