IRVINE, Calif., May 6, 2015 /PRNewswire/ -- Newport Corporation (NASDAQ: NEWP) today reported financial results for its first quarter ended April 4, 2015, and its outlook for the second quarter and full year of 2015. The company noted the following regarding the first quarter results:


    --  Net sales of $156.7 million and new orders of $154.6 million;
    --  Net income of $8.7 million, or $0.21 per diluted share, when measured
        according to generally accepted accounting principles (GAAP);
    --  Non-GAAP net income of $14.6 million, or $0.36 per diluted share,
        excluding the amortization of intangible assets, stock-based
        compensation expense, acquisition-related, restructuring and severance
        costs, losses on disposals of assets and the tax impact of the excluded
        amounts; and
    --  Repurchases of approximately 300,000 shares of common stock for
        approximately $6.0 million during the quarter.

Newport's sales and orders by end market were as follows:


    (In thousands, except percentages, unaudited)       Three Months Ended                                    Percentage                Percentage
                                                        ------------------

                                                                                                                                                Change vs.    Change vs.

                                                               April 4,               January 3,                 March 29,                        Prior       Prior Year

                                                                                 2015                    2015                      2014             Quarter        Period
                                                                                 ----                    ----                      ----             -------        ------


    Sales by End Market
    -------------------


     Scientific research                                                   $35,365                 $34,780                   $31,881                   1.7%         10.9%

     Microelectronics                                                       39,877                  41,612                    33,953                  -4.2%         17.4%

     Life and health sciences                                              32,586                  34,038                    34,262                  -4.3%         -4.9%

     Defense and security                                                   14,398                  14,310                    11,577                   0.6%         24.4%

     Industrial manufacturing and other                                    34,429                  33,989                    35,217                   1.3%         -2.2%

                                                  Total                     $156,655                $158,729                  $146,890                  -1.3%          6.6%
                                                                                                 ========                  ========


    Orders by End Market
    --------------------


     Scientific research                                                   $34,534                 $40,772                   $28,255                 -15.3%         22.2%

     Microelectronics                                                       36,193                  44,782                    42,579                 -19.2%        -15.0%

     Life and health sciences                                              30,374                  51,738                    29,662                 -41.3%          2.4%

     Defense and security                                                   15,186                  18,821                    11,325                 -19.3%         34.1%

     Industrial manufacturing and other                                    38,338                  36,207                    35,463                   5.9%          8.1%

                                                  Total                     $154,625                $192,320                  $147,284                 -19.6%          5.0%
                                                                                                 ========                  ========



    Note:                  Newport's fiscal quarter
                           ended January 3, 2015 was
                           comprised of 14 weeks,
                           whereas its fiscal
                           quarters ended April 4,
                           2015 and March 29, 2014
                           were each comprised of 13
                           weeks.

Commenting on the results, Robert J. Phillippy, Newport's President and Chief Executive Officer, stated, "The Newport team is off to a strong start in 2015. Our first quarter sales and new orders increased 6.6% and 5.0%, respectively, compared with the prior year first quarter, despite the unfavorable impact of foreign exchange rates. More importantly, we continued to leverage this sales growth into higher profit levels. On a non-GAAP basis, our operating income of $21.9 million increased 22.1%, and our earnings per diluted share of $0.36 increased 24.1%, compared with the prior year first quarter. We believe that our strong performance is the direct result of effective execution in our business and the increasing contributions of our strategic growth initiatives."

Operating Income and Net Income

Newport reported operating income for the first quarter of 2015 of $13.6 million, or 8.7% of net sales, when calculated in accordance with GAAP. On a non-GAAP basis, excluding the amortization of intangible assets, stock-based compensation expense, acquisition-related, restructuring and severance costs and losses on disposals of assets, the company's operating income for the first quarter of 2015 was $21.9 million, or 13.9% of net sales.

On a GAAP basis, the company reported net income for the first quarter of 2015 of $8.7 million, or $0.21 per diluted share. On a non-GAAP basis, excluding the items referenced above and the tax impact of such excluded amounts, the company's net income for the first quarter of 2015 was $14.6 million, or $0.36 per diluted share.

The company has provided a reconciliation of its gross profit, operating income, net income and net income per diluted share calculated in accordance with GAAP and on a non-GAAP basis following the statements of income and comprehensive income included in this release. Management believes that the supplemental presentation of non-GAAP financial information provides insight into the company's core business results, as well as a useful resource for comparison of its financial results between periods.

Liquidity and Share Repurchase Program

As of April 4, 2015, the company had a total of $32.7 million in cash, cash equivalents, restricted cash and marketable securities, total indebtedness of $81.6 million and $166.3 million of borrowing capacity available on its revolving credit facility. In the first quarter of 2015, Newport generated $5.1 million in cash from operations.

Mr. Phillippy stated, "Our prudent allocation of capital enables us to strengthen our operating and financial position while enhancing value for our shareholders through accretive acquisitions and share repurchases. During the first quarter, we paid $8.4 million, net of adjustments and cash received, to acquire FEMTOLASERS Produktions GmbH, a leading developer and manufacturer of advanced ultrafast lasers headquartered in Vienna, Austria, and we used approximately $6.0 million to repurchase Newport shares. Since the third quarter of 2014, we have used $16.3 million to repurchase approximately 870,000 shares at an average price of $18.73, representing more than 2% of Newport's outstanding shares." The company noted that approximately 3.0 million shares remain available for repurchase under the program previously authorized by the company's board of directors, and the company expects to continue to repurchase shares for the foreseeable future. The amount and timing of future repurchases will depend on factors such as the company's share price level, its other capital requirements and the terms of the company's credit facility.

Acquisitions

On February 11, 2015, Newport completed its acquisition of FEMTOLASERS, adding to the company's significant expertise and intellectual property position in advanced ultrafast laser systems. Newport expects FEMTOLASERS to contribute approximately $5 million to $8 million in sales during the remainder of 2015, and expects the acquisition to be accretive to the company's earnings in the next 12 months. Femtolasers' results were immaterial to Newport's first quarter 2015 income statement.

Financial Outlook

Commenting on Newport's full year outlook, Mr. Phillippy said, "We are encouraged by our first quarter performance, and expect to have record sales and non-GAAP net income again in 2015. Our business and the end markets we serve are well balanced, and although conditions in these markets vary, we are confident that Newport's overall trajectory is very positive. We will continue to efficiently allocate our capital to increase our earnings per share through accretive, strategic acquisitions, share buybacks and debt reductions."

Commenting specifically on the second quarter of 2015, Mr. Phillippy added, "In the second quarter, we expect our sales to increase year-over-year once again, despite the anticipated unfavorable impact of foreign exchange rates, to between $154 million and $161 million, and we expect to again achieve year-over-year increases in non-GAAP operating income and non-GAAP earnings per diluted share."

ABOUT NEWPORT CORPORATION

Newport Corporation is a leading global supplier of advanced-technology products and systems to customers in the scientific research, microelectronics, life and health sciences, industrial manufacturing and defense/security markets. Newport's innovative solutions leverage its expertise in advanced technologies, including lasers, photonics and precision motion equipment, and optical components and sub-systems, to enhance the capabilities and productivity of its customers' manufacturing, engineering and research applications. Newport is part of the Standard & Poor's SmallCap 600 Index and the Russell 2000 Index.

Learn more about Newport at www.newport.com and follow the company on Twitter, YouTube and Facebook. To download Newport's investor relations app, which offers access to its SEC filings, press releases, videos, audiocasts and more, please visit Apple's App Store for the iPhone and iPad or Google Play for Android mobile devices.

INVESTOR CONFERENCE CALL

Robert J. Phillippy, President and Chief Executive Officer, and Charles F. Cargile, Senior Vice President, Chief Financial Officer and Treasurer, will host an investor conference call today, May 6, 2015, at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) to review the company's results for the first quarter of 2015 and its business outlook for the second quarter and remainder of 2015. The call will be open to all interested investors through a live audio web broadcast via the Internet at www.newport.com/investors. The call also will be available to investors and analysts by dialing 877-375-4189 within the U.S. and Canada or 973-935-2046 from abroad.

The webcast will be archived on the Newport website and can be reached through the same link. An archived webcast will also be available on Newport's investor relations app. A telephonic playback of the conference call will be available by calling 855-859-2056 within the U.S. and Canada and 404?537-3406 from abroad. Playback will be available beginning at 8:00 p.m. Eastern time on Wednesday, May 6, 2015, and continue through 11:59 p.m. Eastern time on Wednesday, May 13, 2015. The replay passcode is 22767580.

SAFE HARBOR STATEMENT

This news release contains forward-looking statements, including without limitation statements regarding the company's expectation of continuing to repurchase shares for the foreseeable future; the expected future sales and earnings accretion of FEMTOLASERS; the company's expectation of achieving record sales and non-GAAP net income in 2015; the company's confidence in its overall very positive trajectory and its expectation that it will continue to grow its earnings per diluted share via accretive, strategic acquisitions, share buybacks and debt reductions; and the company's expected sales, non-GAAP operating income and non-GAAP earnings per diluted share in the second quarter of 2015. Without limiting the generality of the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate" or "continue" or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Assumptions relating to the foregoing involve judgments and risks with respect to, among other things, the strength of business conditions in the industries Newport serves, particularly the semiconductor and defense and security industries; Newport's ability to achieve the expected benefits from the integration of acquired businesses; Newport's ability to successfully penetrate and increase sales to its targeted end markets; the levels of private and governmental research funding worldwide; potential order cancellations and push-outs; future economic, competitive and market conditions, including those in Europe and Asia and those related to its strategic markets; whether its products will continue to achieve customer acceptance; and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of Newport. Certain of these judgments and risks are discussed in more detail in Newport's periodic reports filed with the Securities and Exchange Commission. Although Newport believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the results contemplated in forward-looking statements will be realized. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by Newport or any other person that Newport's objectives or plans will be achieved. Newport undertakes no obligation to revise the forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.



                                             Newport Corporation

                         Consolidated Statements of Income and Comprehensive Income

                                                 (Unaudited)



                                                Three Months Ended
                                                ------------------

                                                     April 4,                       March 29,

    (In
     thousands,
     except
     per
     share
     amounts)                                                    2015                            2014
                                                                 ----                            ----


    Net sales                                                $156,655                        $146,890

    Cost of
     sales                                                     86,374                          81,431
                                                               ------                          ------

    Gross
     profit                                                    70,281                          65,459


    Selling,
     general
     and
     administrative
     expenses                                                  40,609                          39,206

    Research
     and
     development
     expense                                                   14,955                          14,138

    Loss
     (gain)
     on sale
     or other
     disposal
     of
     assets,
     net                                                        1,088                           (411)
                                                                -----                            ----

    Operating
     income                                                    13,629                          12,526


    Interest
     and
     other
     expense,
     net                                                        (903)                          (976)
                                                                 ----                            ----

    Income
     before
     income
     taxes                                                     12,726                          11,550


    Income
     tax
     provision                                                  4,062                           3,609
                                                                -----                           -----

    Net
     income                                                     8,664                           7,941

    Net
     income
     attributable
     to non-
     controlling
     interests                                                      -                             55

    Net
     income
     attributable
     to
     Newport
     Corporation                                               $8,664                          $7,886
                                                               ======                          ======



    Net
     income                                                    $8,664                          $7,941

    Other comprehensive income (loss):

    Foreign
     currency
     translation
     (losses)
     gains                                                    (6,211)                            461

     Unrecognized
     net
     pension
     gains                                                        470                              43

     Unrealized
     (losses)
     gains on
     investments
     and
     marketable
     securities                                                 (108)                             20
                                                                 ----                             ---

    Other
     comprehensive
     income
     (loss)                                                   (5,849)                            524

     Comprehensive
     income                                                    $2,815                          $8,465
                                                               ======                          ======


     Comprehensive
     income
     attributable
     to non-
     controlling
     interests                                $                     -                            $69

     Comprehensive
     income
     attributable
     to
     Newport
     Corporation                                                2,815                           8,396

     Comprehensive
     income                                                    $2,815                          $8,465
                                                               ======                          ======


    Net income per share attributable
     to Newport Corporation:

    Basic                                                       $0.22                           $0.20

    Diluted                                                     $0.21                           $0.19


    Shares used in the computation of
     net income per share:

    Basic                                                      39,601                          39,525

    Diluted                                                    40,560                          40,499


    Other operating data:

    New
     orders
     received
     during
     the
     period                                                  $154,625                        $147,284

    Backlog
     at the
     end of
     period
     scheduled
     to ship
     within
     12
     months                                                  $175,165                        $192,122



                                                                            Newport Corporation

                                                                      Supplemental Non-GAAP Measures

                                                                                (Unaudited)




                                                                                                     Three Months Ended
                                                                                                     ------------------

    (In thousands, except percentages and per share amounts)                                              April 4,               March 29,

                                                                                                                            2015               2014
                                                                                                                            ----               ----

    Net sales                                                                                                           $156,655           $146,890


    Cost of sales:

    Cost of sales - GAAP                                                                                                 $86,374            $81,431

    Amortization of intangible assets                                                                                        955                962

    Stock-based compensation expense                                                                                         396                212
                                                                                                                             ---                ---

    Non-GAAP cost of sales                                                                                                85,023             80,257

    Non-GAAP gross profit                                                                                                $71,632            $66,633
                                                                                                                         =======            =======


    Non-GAAP gross profit as a percentage of net sales                                                                     45.7%             45.4%


    Operating income:

    Operating income - GAAP                                                                                              $13,629            $12,526

    Amortization of intangible assets                                                                                      2,089              2,479

    Stock-based compensation expense                                                                                       4,084              2,337

    Acquisition-related, restructuring and severance costs                                                                   962                968

    Loss (gain) on sale or other disposal of assets, net                                                                   1,088              (411)

    Non-GAAP operating income                                                                                            $21,852            $17,899
                                                                                                                         =======            =======


    Non-GAAP operating income as a percentage of net sales                                                                 13.9%             12.2%


    Net income attributable to Newport Corporation:

    Net income - GAAP                                                                                                     $8,664             $7,886

    Amortization of intangible assets                                                                                      2,089              2,479

    Stock-based compensation expense                                                                                       4,084              2,337

    Acquisition-related, restructuring and severance costs                                                                   962                968

    Loss (gain) on sale or other disposal of assets, net                                                                   1,088              (411)

    Income tax provision on non-GAAP adjustments                                                                         (2,322)           (1,691)

    Non-GAAP net income                                                                                                  $14,565            $11,568
                                                                                                                         =======            =======



    Net income per diluted share attributable to Newport Corporation:

    Net income - GAAP                                                                                                      $0.21              $0.19

    Total non-GAAP adjustments                                                                                              0.15               0.10

    Non-GAAP net income per diluted share                                                                                  $0.36              $0.29
                                                                                                                           =====              =====



                                             Newport Corporation

                                         Consolidated Balance Sheets

                                                 (Unaudited)



                                                          April 4,        January 3,

    (In thousands)                                                   2015               2015
                                                                     ----               ----


    ASSETS

    Current assets:

    Cash and cash
     equivalents                                                  $31,192            $46,883

    Restricted cash                                                 1,524              1,704

    Marketable securities                                               6                 57

    Accounts receivable,
     net                                                          103,946             96,512

    Inventories, net                                              121,188            112,440

    Current deferred tax
     assets                                                        20,885             20,734

    Prepaid expenses and
     other current assets                                          22,053             14,948
                                                                   ------             ------

    Total current assets                                          300,794            293,278


    Property and equipment,
     net                                                           82,914             82,793

    Goodwill                                                      104,643             97,524

    Long-term deferred tax
     assets                                                         5,204              5,005

    Intangible assets, net                                         72,093             70,811

    Investments and other
     assets                                                        27,494             30,516

    Total assets                                                 $593,142           $579,927
                                                                 ========           ========


    LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:

    Short-term borrowings                                          $3,567             $3,772

    Accounts payable                                               35,990             31,448

    Accrued payroll and
     related expenses                                              35,967             34,607

    Accrued expenses and
     other current
     liabilities                                                   34,227             31,797
                                                                   ------             ------

    Total current
     liabilities                                                  109,751            101,624


    Long-term debt                                                 78,000             71,000

    Pension liabilities                                            27,724             28,554

    Long-term deferred tax
     liabilities                                                   14,559             14,272

    Other long-term
     liabilities                                                    7,616              7,773


    Total stockholders'
     equity                                                       355,492            356,704

    Total liabilities and
     stockholders' equity                                        $593,142           $579,927
                                                                 ========           ========

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/newport-corporation-reports-first-quarter-2015-results-300078876.html

SOURCE Newport Corporation