Newport Corporation Reports Fourth Quarter and Full-Year 2009 Results
Orders Grow 17% and Sales Grow 15% on a Sequential Basis -
IRVINE, Calif., Feb 03, 2010 /PRNewswire via COMTEX/ — Newport Corporation (Nasdaq: NEWP) today reported financial results for its fourth quarter and full year ended January 2, 2010. The company noted the following highlights regarding its fourth quarter:
- Achieved $108.3 million in new orders, representing a 17.0% sequential increase over the $92.6 million in orders recorded in the third quarter of 2009;
- Recorded $101.6 million in net sales, representing a 15.0% sequential increase over the $88.3 million recorded in the third quarter of 2009;
- Achieved net income of $4.8 million, or $0.13 per diluted share, on a non-GAAP basis; and
- Completed its operational consolidation initiatives in the fourth quarter of 2009. These included the integration of the New Focus(TM) business acquired in July 2009, the relocation of its U.S.-based Lasers Division operations to Santa Clara, California, the outsourcing of manufacturing activities and subsequent closure of its Ottawa, Canada facility, and the consolidation of its China-based manufacturing activities into a new and expanded facility in Wuxi, China.
GAAP Net Income (Loss)
When calculated in accordance with generally accepted accounting principles (GAAP), Newport reported net income in the fourth quarter of 2009 of $0.1 million, or $0.00 per diluted share, compared with a net loss of $144.8 million, or $4.02 per share, in the fourth quarter of 2008. For the full year of 2009, the company reported a net loss of $17.4 million, or $0.48 per share, compared with a net loss of $148.7 million, or $4.11 per share, in the comparable period of 2008.
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 fourth quarter of 2009 of $4.8 million, or $0.13 per diluted share, compared with a non-GAAP net loss of $0.2 million, or $0.00 per share, in the fourth quarter of 2008. For the full year of 2009, on a non-GAAP basis, Newport would have reported net income of $7.2 million, or $0.20 per diluted share, compared with non-GAAP net income of $11.0 million, or $0.30 per diluted share, in the full year of 2008. A reconciliation of the company’s net income (loss) calculated in accordance with GAAP and on a non-GAAP basis is provided following the statements of operations included in this release.
Sales and Orders
Sales in the fourth quarter of 2009 totaled $101.6 million, a decrease of 5.4% compared with the $107.4 million recorded in the fourth quarter of 2008. Sales for the full year of 2009 totaled $367.0 million, a decrease of 17.6% compared with the $445.3 million recorded for the full year of 2008. New orders received in the fourth quarter of 2009 totaled $108.3 million, an increase of 8.8% compared with the $99.6 million received in the fourth quarter of 2008. New orders received for the full year of 2009 totaled $361.7 million, a decrease of 17.6% compared with the $439.1 million received in the comparable period of 2008.
The company’s sales and orders by end market were as follows:
(In thousands, Percent
except percentages, Change vs.
unaudited) Three Months Ended Year Ended Prior Year
------------------ ---------- -----------
January January January January Fourth Full
2, 3, 2, 3, Quarter Year
2010 2009(2) 2010 2009(2) 2009 2009
---- ------ ---- ------ ---- ----
-------------------
Sales by End Market
-------------------
Scientific
research, aerospace
and defense/
security $39,517 $41,985 $143,453 $150,328 -5.9% -4.6%
Microelectronics (1) 24,613 25,705 84,661 130,250 -4.2% -35.0%
Life and health
sciences 21,963 22,244 87,506 90,128 -1.3% -2.9%
Industrial
manufacturing and
other 15,502 17,469 51,369 74,630 -11.3% -31.2%
------ ------ ------ ------
Total $101,595 $107,403 $366,989 $445,336 -5.4% -17.6%
======== ======== ======== ========
--------------------
Orders by End Market
--------------------
Scientific research,
aerospace and
defense/security $41,550 $42,570 $144,890 $152,669 -2.4% -5.1%
Microelectronics (1) 26,982 17,317 77,853 121,845 55.8% -36.1%
Life and health
sciences 23,017 26,150 83,430 95,347 -12.0% -12.5%
Industrial
manufacturing and
other 16,763 13,557 55,508 69,213 23.6% -19.8%
------ ------ ------ ------
Total $108,312 $99,594 $361,681 $439,074 8.8% -17.6%
======== ======= ======== ========
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:
- Sequentially, sales increased 15.0% in the fourth quarter of 2009 compared with the third quarter of 2009, driven by increases in all of the company’s end markets. Similarly, orders increased by 17.0% in the fourth quarter of 2009 versus the third quarter of 2009, due to higher orders from all of the company’s end markets.
- Sales were lower in the fourth quarter of 2009 compared with the fourth quarter of 2008 across all of Newport’s end markets, reflecting the macroeconomic decline experienced during 2009. However, total fourth quarter orders increased on a year-over-year basis, due primarily to a significant rebound in orders from customers in the company’s Microelectronics end market.
- The company’s book-to-bill ratio in the fourth quarter of 2009 was 1.07. This reflects the highest level achieved since the first quarter of 2008.
Cash Generation
During the fourth quarter of 2009, Newport generated approximately $11.5 million in cash from operations, even after using $2.8 million in cash to complete its operational consolidation efforts. As announced previously, the company used $18.7 million of cash during the quarter to retire $20.2 million of its convertible subordinated notes. Newport’s total cash, cash equivalents and marketable securities totaled $141.9 million at the end of the fourth quarter of 2009.
Robert J. Phillippy, Newport’s President and Chief Executive Officer, stated, "From both a strategic and operational perspective, 2009 was a year of many significant accomplishments for Newport. The completion of our initiatives to streamline our cost structure and integrate New Focus, coupled with the strong order momentum we have experienced in the second half of 2009, position us well for the coming year. We are pleased by our cash generation from operations, and by our improving non-GAAP earnings in the fourth quarter of 2009. We believe that we are very well positioned to leverage the sales growth anticipated in 2010 into solid profitability."
Mr. Phillippy added, "Historically, our sales have been seasonally slower in the first quarter of the year in some of the markets we serve, particularly the research market. In the first quarter of 2010, however, we expect that improving conditions in our target end markets, coupled with increased backlog resulting from prior period design wins, will offset some if not all of the normal seasonal softness. If this momentum in our key end markets continues, we expect our net sales for the full year 2010 to increase by more than 10% over 2009. In addition, we expect to be profitable on a GAAP basis in the first quarter of this year, and we expect our profitability to increase sequentially in each quarter of 2010."
ABOUT NEWPORT CORPORATION
Newport Corporation is a leading global supplier of advanced-technology products and systems to customers in the scientific research, microelectronics, aerospace and defense/security, life and health sciences and precision industrial manufacturing markets. Newport’s innovative solutions leverage its expertise in lasers, photonics instrumentation, sub-micron positioning systems, vibration isolation, optical components and subsystems and precision automation to enhance the capabilities and productivity of its customers’ manufacturing, engineering and research applications. Newport is part of the Standard & Poor’s SmallCap 600 Index and the Russell 2000 Index.
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