Newport Corp.’s Solid Earnings Propel Stock to 52-Week High

Newport Corp.’s stock surged Thursday to a 52-week high in active trading after the Irvine firm posted strong fourth-quarter earnings, largely from heavy demand for its fiber-optics products and semiconductor equipment.

The company noted that the fiber-optics communications market,

in particular, is booming. Fiber-optic lines, which feature large capacity, have become the backbone for carrying data and voice transmissions.

Shares moved up $13.88, or 22%, to $77 in Nasdaq trading of 1.78 million shares, almost four times heavier than the average daily volume over the last three months. At one point, the stock hit $78.88, its highest level in a year, after the company disclosed its financial results.

The stock was trading around $16 in October.

For the fourth quarter, profits climbed 15% to $3 million, or 31 cents a share, from $2.6 million, or 28 cents a share, for the same period a year earlier. Sales increased 24% to $41.5 million.

Newport also said it expects most of its product lines to show growth rates of 30% to 50% this year.

For 1999, however, net income fell nearly 8% to $8.3 million, or 88 cents a share, from $9 million, or 96 cents a share, the previous year. Sales rose 5.5% to $141.9 million.

The company said yearly results were dampened by slowness in the aerospace and semiconductor equipment markets earlier in the year as well as a delay in one of Newport’s new products.

(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

Newport Corp’s Surge

Heavy demand for fiber-optics equipment and semiconductor units pushed earnings up. Weekly stock trend:

Thursday close: $77

Source: Bloomberg News