Newport Corporation Reports Fourth Quarter And Full Year 2015 Results

IRVINE, Calif., Feb. 23, 2016 /PRNewswire/ -- Newport Corporation (NASDAQ: NEWP) today reported financial results for its fourth quarter and year ended January 2, 2016. 

Newport announced that it has entered into an agreement with MKS Instruments, Inc. (Nasdaq: MKSI), pursuant to which MKS has agreed to acquire Newport for $23.00 per share in cash, in a transaction valued at approximately $980 million. In anticipation of this transaction, Newport will not be conducting conference calls to discuss its results for the fourth quarter or any subsequent periods, and will not be issuing financial guidance for future periods. For more information regarding this transaction, please refer to the press release issued by MKS and Newport today.

The company noted the following regarding the results for the fourth quarter and full year of 2015:

• Net sales of $150.5 million for the fourth quarter and $602.7 million for the full year;
• New orders of $152.7 million for the fourth quarter and $605.7 million for the full year;
• Net income of $9.6 million, or $0.24 per diluted share, for the fourth quarter, and $31.1 million, or $0.78 per diluted share, for the full year, when measured according to generally accepted accounting principles (GAAP);
• Non-GAAP net income of $15.5 million, or $0.39 per diluted share, for the fourth quarter, and $52.3 million, or $1.31 per diluted share, for the full year, excluding the amortization of intangible assets, stock-based compensation expense, acquisition-related, restructuring and severance costs, a loss on disposal of assets, and the tax impact of the excluded amounts; and
• Cash generated from operations of $23.3 million for the fourth quarter and $51.7 million for the full year.

Robert Phillippy, President and Chief Executive Officer, commented: "The Newport team delivered a strong fourth quarter, with cash generated from operations and earnings per diluted share both at the highest levels of the year.  This performance demonstrates the effectiveness of our business model and the results of our actions to streamline our operations."     

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

Operating Income and Net Income

Newport reported operating income for the fourth quarter of 2015 of $13.2 million, or 8.8% 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 fourth quarter of 2015 was $21.0 million, or 13.9% of net sales. For the full year of 2015, the company reported operating income of $47.4 million, or 7.9% of sales, when calculated in accordance with GAAP. On a non-GAAP basis, excluding the items referenced above and a loss on disposal of assets, operating income for the full year of 2015 was $76.3 million, or 12.7% of sales. 

On a GAAP basis, the company reported net income for the fourth quarter of 2015 of $9.6 million, or $0.24 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 fourth quarter of 2015 was $15.5 million, or $0.39 per diluted share. For the full year of 2015, on a GAAP basis, net income was $31.1 million, or $0.78 per diluted share. On a non-GAAP basis, excluding the items referenced above and the tax impact of such excluded amounts, net income for the full year was $52.3 million, or $1.31 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. 

Cash, Cash Equivalents and Marketable Securities and Indebtedness

As of January 2, 2016, the company had $42.4 million of cash, cash equivalents and restricted cash and a total indebtedness of $77.4 million. The company noted that it did not repurchase any shares of its common stock during the fourth quarter of 2015, and that, in anticipation of the pending acquisition transaction, the company has terminated its share repurchase program.

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. 

SAFE HARBOR STATEMENT

This news release contains forward-looking statements that involve risks and uncertainties.  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 and from its cost reduction actions; 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.

SOURCE Newport Corporation

Related Links

http://www.newport.com