Newport Reports Losses Continue
Irvine, CA, February 3, 2004. Newport has reported its financial results for the fourth quarter and year ended December 31, 2003. Sales for the fourth quarter of 2003 totaled $36.2 million, an increase of approximately 12% compared with the $32.4 million recorded in the fourth quarter of 2002. The company reported a loss from continuing operations for the fourth quarter of 2003 of $1.7 million, or $0.04 per share, compared with a loss from continuing operations of $4.3 million, or $0.11 per share, in the corresponding prior-year period.
New orders received in the fourth quarter of 2003 totaled $37.5 million, an increase of approximately 33% compared with the $28.3 million received in the fourth quarter of 2002.
Robert G. Deuster, chairman and chief executive officer, said, "Fourth quarter orders, sales and loss per share were consistent with our expectations. While 2003 was another challenging year for Newport, we believe that the actions taken have positioned us well to benefit from the better expected global conditions in our markets in 2004." Deuster identified a number of these actions and other factors, including:
* New orders from customers increased sequentially every quarter in 2003.
* Backlog scheduled to ship in the next 12 months is almost $4 million higher than at the end of 2002.
* Successful introduction of over 100 new products in the last six months for the life and health sciences and photonics research markets provides new opportunities for sales growth in 2004.
* Overall semiconductor capital spending has been showing strong signs of improvement for the first half of 2004, which we expect to result in increased revenue from our design wins with semiconductor front-end equipment customers.
* Design wins for flip-chip underfill equipment at two major semiconductor back-end packaging subcontractors, which we expect to result in additional sales and orders from these customers in 2004.
"With our leaner operating structure and our expectation of higher sales, we are optimistic that we will be able to return to profitability in the first quarter of 2004," Deuster added.
For the year ended December 31, 2003, Newport reported sales of $134.8 million, compared with sales of $164.0 million in 2002. The company reported a loss from continuing operations for 2003 of $10.6 million, or $0.27 per share, compared with a loss from continuing operations in 2002 of $70.9 million, or $1.87 per share. The results for 2002 included a restructuring charge of $43.1 million, or $1.14 per share, related to increased inventory reserves and cost reduction initiatives, net income tax expense of $14.0 million, or $0.37 per share, due primarily to the establishment of a valuation reserve for previously recorded deferred tax assets, and a charge of $6.5 million, or $0.17 per share, which was required to write down the company's minority investment in two fiber optic component manufacturers.
For more information, visit www.newport.com.
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