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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.”

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“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.


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