Newport Corp. Net Income for Fiscal Year Falls by 21%

Newport Corp. said net income during its 1986 fiscal year, ended July 31, fell 21% to $6.2 million from $7.9 million. The Fountain Valley manufacturer of laser components said revenues for the year increased 8.6% to $40.7 million from $37.5 million.

For the fiscal fourth-quarter, Newport said, net earnings declined 25% to $1.6 million from $2.2 million. Sales increased 5.8% to $11.1 million from $10.5 million.

Despite the modest sales increase during 1986, earnings fell because the new sales were not enough to cover the expense of the company’s doubling of manufacturing capacity, said Walter J. Ludt III, vice president and treasurer. Increased research and administrative expenses also contributed to the lower earnings.

Historically, sales have increased at a rate of about 25% a year, Ludt said. With new products in the pipeline, Newport expects to attain “a better growth rate” during the current year, he said.