Newport Reports Q4 and 2002 Losses

Jan. 30, 2003
Irvine, CA, January 29 2003. Newport Corporation reported financial results for the fourth quarter and year ended December 31, 2002. Sales from continuing operations for the fourth quarter of 2002 totaled $32.4 million compared with $43.5 million in the fourth quarter of 2001 and $45.5 million in the third quarter of 2002.

Irvine, CA, January 29 2003. Newport Corporation reported financial results for the fourth quarter and year ended December 31, 2002. Sales from continuing operations for the fourth quarter of 2002 totaled $32.4 million compared with $43.5 million in the fourth quarter of 2001 and $45.5 million in the third quarter of 2002.

The company reported a loss from continuing operations for the fourth quarter of 2002 of $4.3 million, or $0.11 per share, compared with income from continuing operations of $1.9 million, or $0.05 per share, in the corresponding prior year period.

Robert G. Deuster, president and chief executive officer, said, "Fourth quarter results were consistent with our expectations and reflect the continuing downturn in the semiconductor and fiber optic communications markets. While 2002 was a difficult and challenging year for Newport, we were able to take many actions that we believe will position us well for 2003 and beyond." Deuster outlined a number of these actions, including:

* A significant number of new design wins for subsystem products with new and existing semiconductor equipment customers.

* Greater penetration of the semiconductor back-end packaging market, with a number of orders from new customers for back-end packaging systems used in flip chip applications.

* A significant reduction in the company's cost structure resulting from the restructuring activities announced in the third quarter of 2002.

* Introduction of new products to further solidify Newport's leadership position in sales to the worldwide research community.

"With our strong balance sheet, our leaner operating structure and our blue chip list of customers, we are well positioned to continue to be a prominent supplier of capital equipment, subsystems and components to high-technology companies and research organizations," Deuster added.

For the year ended December 31, 2002, Newport reported sales from continuing operations of $164.0 million compared with record sales from continuing operations in 2001 of $290.0 million. The company reported a loss from continuing operations for 2002 of $70.9 million, or $1.87 per share, compared with income from continuing operations in 2001 of $3.5 million, or $0.09 per share.

For more information, visit www.newport.com/investors .

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