Newport Corporation Reports Third Quarter 2014 Results

Publié le 31 oct. 2014
Newport Corporation 
Newport Corporation today reported financial results for its third quarter and nine months ended September 27, 2014, and its outlook for the fourth quarter of 2014. 

The company noted the following regarding the third quarter results:

- Net sales of $146.3 million;

- New orders of $147.3 million;

- Net income attributable to Newport Corporation of $9.5 million, or $0.23 per diluted share, when measured according to generally accepted accounting principles (GAAP);

- Non-GAAP net income of $13.6 million, or $0.33 per diluted share, excluding the amortization of intangible assets, stock-based compensation expense, acquisition-related, restructuring and severance costs, a one-time tax benefit and the tax impact of the excluded amounts;

- Cash generated from operations of $5.4 million, and a net debt position of $2.4 million at the end of the quarter; and

- Repurchases of approximately 242,000 shares of common stock for approximately $4.5 million during the quarter.

Commenting on the results, Robert J. Phillippy, Newport's President and Chief Executive Officer, stated, "We grew our third quarter sales by 5.2% and our non-GAAP net income by 9.2% on a year-over-year basis. In addition, we already have excellent momentum in the fourth quarter, as exemplified by some significant orders we have recorded in October. Earlier this week, we received a $25.7 million order from an existing customer for ultrafast lasers used in surgical applications, which we expect to ship within the next 18 to 24 months. We have also received several substantial new orders from a key semiconductor manufacturing equipment customer relating to the collaborative development program for next generation semiconductor equipment that was launched late last year. These orders make us very confident that our book-to-bill ratio for the full year 2014 will be well in excess of 1.0, and that our backlog entering 2015 will be at the highest level in our history."

Sales and Orders

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


In the third quarter of 2014, the company's sales and orders increased 5.2% and 2.0%, respectively, compared with the prior year period. Sales increased on a year-over-year basis in all of the company's end markets except for the defense and security end market, where market conditions continue to be challenging. The year-over-year increase in orders was driven by increases in the company's life and health sciences, scientific research and industrial manufacturing and other end markets, offset by decreased orders from customers in its defense and security and microelectronics end markets. 

On a sequential basis, sales and orders decreased 4.5% and 1.1%, respectively. Sales to the company's scientific research market increased sequentially, but this was more than offset by lower sales to the company's other end markets. Orders from customers in the company's life and health sciences end market were higher sequentially, but this was more than offset by decreased orders from customers in the company's other end markets. 

Operating Income and Net Income

Newport reported operating income for the third quarter of 2014 of $12.8 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 and acquisition-related, restructuring and severance costs, the company's operating income for the third quarter of 2014 was $19.6 million, or 13.4% of net sales, a 6.8% increase over the $18.3 million reported in the prior year period.

On a GAAP basis, the company reported net income attributable to Newport Corporation for the third quarter of 2014 of $9.5 million, or $0.23 per diluted share. On a non-GAAP basis, excluding the items referenced above, a one-time tax benefit and the tax impact of the excluded amounts, the company's third quarter net income was $13.6 million, a 9.2% increase over the $12.4 million reported in the third quarter of 2013. Non-GAAP earnings per diluted share were $0.33 in the third quarter of 2014, compared with $0.31 in the prior year period. 

The company has provided a reconciliation of selected financial measures 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. 

Share Repurchase Program

During the third quarter, the company repurchased approximately 242,000 shares of its common stock at an average price of $18.52 per share, for a total of approximately $4.5 million. Newport's board of directors has authorized the repurchase of an additional 3.6 million shares, and the company expects to continue to repurchase shares for the foreseeable future, with the amount and timing of such repurchases dependent upon factors such as the company's share price level, its other capital requirements and the terms of the company's credit facility. 

Financial Outlook 

Commenting on Newport's outlook, Mr. Phillippy said, "In the fourth quarter, we expect our sales to be in the range of $150 million to $156 million, resulting in record sales for the full year of 2014. We expect to generate a slight sequential increase in earnings and a significant sequential increase in cash from operations on this higher sales level. Looking forward, we believe that our high level of backlog, together with the effective implementation of our strategic initiatives, will drive continued sales growth in 2015, and that the contribution of sales from the acquisition of V-Gen, which we closed at the beginning of the fourth quarter, will further enhance this growth."


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Newport Corporation (Équipements de Production): https://fr.enfsolar.com/newport-corporation
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