Newport Corp. Adjusts Its Sales Projections Upward

Newport Corp., which only last month lowered its revenue projections for the year, said late Tuesday it plans to generate more than $420 million in sales--far exceeding its highest forecast.

The Irvine maker of precision components and instruments said in a press release that the 66% sales increase is being driven by a greater number of orders that also will boost income.

Newport had initially indicated it expected sales to grow 50% this year over $252.9 million last year. But late last month, the company lowered the projection to 40%, leading Wall Street to send its stock tumbling.

The company did not explain the sharp upward revision, but is expected to discuss it this week at the Roth Capital Partners’ 13th Annual Growth Stock Conference in Dana Point.

Newport’s latest revision is expected to be part of a presentation in which executives also will discuss plans to grow to annual sales of $800 to $1 billion over the next three to five years and to increase operating profit margins to 20% to 25%.

The company’s press release came long after the market closed. Its stock fell $9.69 to $53.75 a share. The maker of equipment to produce semiconductors and fiber-optic parts was downgraded to “buy” from “strong buy” in a report by analyst Kevin Slocum at Wit SoundView Corp.