Newport's performance softens with third quarter slowdown

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Sales for Newport in the third quarter saw little growth over those during the same period in 2010, because of a significant decline in the microelectronics sector.

Net sales in the third quarter, ending 1 October, were $125.6 million, an increase of 0.3 per cent over the same period in 2010. The lack of growth was blamed on an industry-wide slowdown in the microelectronics market that led to reduced demand for Newport's products in that sector.

New orders also saw a year-on-year decrease, falling 8.4 per cent in the third quarter compared to the same period in 2010. The sales increase of 0.3 per cent was only achieved because sales held up in Newport's other markets.

Newport's chief executive officer and president Robert Phillippy said, 'We continued to deliver a solid financial performance in the third quarter, despite a reduction in sales to semiconductor equipment customers resulting from the slowdown in that industry'.

During 2011, Newport acquired the firms High Q Technologies and Ophir Optronics and Phillippy said he expected those companies to add to Newport's sales in the fourth quarter.