Newport Corp. Earnings Drop; Higher Costs Blamed
Recent expansion of manufacturing facilities and higher research and development costs caused a 19% drop in third quarter earnings for Newport Corp., said Walter J. Ludt III, vice president-treasurer of the Fountain Valley manufacturer of laser research equipment.
The company posted $1.7 million in earnings for the quarter, ended April 30, contrasted with $2.1 million in the same quarter last year. Net sales, however, rose 10% to $10.8 million from $9.8 million.
Net income for the first nine months of the fiscal year also fell 19% to $4.6 million, from $5.7 million for the same period last year. Net sales in the period climbed 10% to $29.7 million, from $27 million.
Ludt attributed the modest sales increases to “slowness in the general laser marketplace that was due in part to delays in government funding.”
“As sales increase and new products from our research and development are brought to market, we expect to absorb the increased costs and accelerate our profit growth,” he said.