IRVINE, CA, July 29, 2003. Newport reported financial results for its second quarter ended June 30, 2003, reflecting a slight increase in sales, a reduced net loss and an increase in new orders of approximately 10% compared with the first quarter of 2003. The company also announced that it had commenced its previously announced share repurchase program during the second quarter by buying back approximately 160,000 shares at a cost of $2.5 million.
Robert G. Deuster, chairman and chief executive officer said, "Second quarter sales were slightly better than the previous quarter and our loss decreased, consistent with our expectations. The sales increase for the second quarter of 2003 represented our second straight quarter of modest sequential sales growth. In addition, we experienced our second consecutive quarter of growth in new orders. Although the overall conditions in most of the markets we serve are still unsettled, we indicated last quarter that we expected to show quarter-over-quarter sequential increases in new orders throughout 2003, which thus far has proven to be the case. We continue to gain traction in new orders in our research, defense and life and health sciences markets in particular. We expect the sequential quarter-over-quarter growth in sales and orders to continue in the second half of 2003. Furthermore, with our streamlined cost structure, we expect to be profitable for the second half of 2003."
For the second quarter of 2003, Newport recorded sales of $33.8 million and a loss from continuing operations of $2.1 million, or $0.05 per diluted share. In the first quarter of 2003, Newport had sales of $33.3 million and a loss from continuing operations of $3.9 million, or $0.10 per diluted share.
During the second quarter of 2002, the company recorded sales of $43.0 million and a loss from continuing operations of $6.4 million, or $0.17 per diluted share. The second quarter of 2002 included a $6.5 million charge required to write down the company's minority investments in two fiber optic component manufacturers.
New orders received in the second quarter of 2003 totaled $35.8 million, compared with the $32.5 million recorded in the first quarter of 2003. Orders
in the second quarter of 2002 were $49.3 million.
For the first half of 2003, Newport recorded sales of $67.1 million versus $86.0 million in the comparable period of 2002. New orders in the first half of 2003 were $68.3 million, compared with $87.5 million in the first half of 2002. For the first half of 2003, Newport incurred a loss from continuing operations of $6.0 million, or $0.15 per share, compared with $7.2 million, or $0.19 per share, in the first half of 2002.
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