Irvine, CA--Newport Corporation (Nasdaq: NEWP) reported upbeat financial results for its third quarter and nine months ended October 2, 2010. The results include:
--Recorded $125.2 million in net sales, a 41.7% increase over the third quarter of 2009, and the highest quarterly revenue level in the company's history;
--Received $129.5 million in new orders, a 39.9% increase over the third quarter of 2009, and the second-highest level in the company's history;
--Achieved net income of $12.6 million, or $0.34 per diluted share (driven by higher sales and margins with a lower tax rate adding $0.02); and
--Increased its total cash, cash equivalents, and marketable securities position by $12.7 million, to $165.1 million.
Gross margins of 42.9% were weaker than the company's expectations (43.7%), but were affected negatively 1% by a non-recurring cost from the July 2010 divestiture of Hilger Crystals. Operating margins increased 10.3% y/y and 1.8% q/q to 12.3%.
Robert J. Phillippy, Newport's president and CEO, noted that Newport's orders in the first nine months of 2010 were $379.7 million and its book-to-bill ratio for that period was 1.09, increasing the company's backlog scheduled to ship in the next 12 months to $132.0 million from $95.0 million a year ago.
Sales for the first nine months of 2010 were $346.9 million, a 30.7% increase over the $265.4 million recorded in the first nine months of 2009. The company's book-to-bill ratio remains above one at 1.03. Its backlog grew to $132M (+39% y/y and 6% q/q).
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