Newport reports record earnings

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Newport Corporation has reported financial results of $258.5m for the first half of 2011, a 16.6 per cent increase over the first half of 2010.

New orders received in the second quarter of 2011 were $143.7m, an increase of 14.5 per cent compared with the second quarter of 2010 and the highest quarterly level in the company's history, resulting in a book-to-bill ratio of 1.10. 

Robert Phillippy, Newport's president and CEO, stated: 'Our sales in the second quarter were the second highest level we have achieved in any quarter in our history, and we continued to demonstrate excellent profit leverage, with solid gross margin, net income and earnings per diluted share. Our gross margin of 45.9 per cent represented the second consecutive quarter we have exceeded our target of 45 per cent and was approximately 250 basis points higher than our gross margin in the second quarter of 2010. In addition, we delivered a strong cash generation performance in the quarter, increasing our cash, cash equivalents and marketable securities balances to $214.2m.'

In addition, Newport has completed its acquisition of High Q Technologies, a leading developer and manufacturer of ultrafast lasers. Financial terms of the transaction were not disclosed. Newport expects High Q to achieve revenues for the full year of 2011 of approximately $20m. High Q's financial results will be consolidated with Newport's beginning immediately following the closing date and the acquisition is expected to be immediately accretive to Newport's earnings.

High Q is a leader in femtosecond lasers used for surgical procedures, a fast-growing application in the life and health sciences market that Newport does not participate in currently, and in picosecond laser technology, which is ideally suited for a number of high-growth applications in Newport's precision industrial manufacturing markets. High Q is headquartered in Rankweil, Austria, with three-fourths of its sales to customers in Europe. The company will become part of Newport's Spectra-Physics Lasers Division.