Newport expects delayed shipment, $2-3 million loss in 3Q03
Irvine, CA—Newport Corp. announced Sept. 24 that it expects its sales for 2003’s third quarter (3Q03) to reach $31-33 million, rather than the $36-39 million it previously expected, resulting in a net loss of $2-3 million.
Irvine, CA— Newport Corp. announced Sept. 24 that it expects its sales for 2003’s third quarter (3Q03) to reach $31-33 million, rather than the $36-39 million it previously expected, resulting in a net loss of $2-3 million. The firm says this translates to a loss of $0.05 to 0.08 per share, compared with the company's previous per share guidance between earnings of $.02 and a loss of $.02.
'As we approach the end of the quarter, it is becoming clear to us that a number of the shipments we anticipated for the quarter will shift into the fourth quarter of this year and beyond,' says Robert Deuster, Newport’s chairman and CEO.
Newport reports that there are three primary reasons for its reduced sales projections, including:
The company’s largest OEM customer in the life and health sciences market delayed the launch of a new product for which Newport provides product design and engineering collaboration, as well as critical subsystems. The product launch is now scheduled for October 2003, and so the shipments Newport planned to make in 3Q03 are now expected in 4Q03 and 1Q04. This delay will not have a negative impact on Newport's new orders for 3Q03 because the company expects to report $2 million worth of new orders from this customer during the quarter. These orders are scheduled to ship during the next six months.
Delays in gaining final approval for several large orders from back-end semiconductor customers that Newport had anticipated booking and shipping in 3Q03 caused a reduction of $1.5 million in both sales and orders for the quarter.
Lower-than-expected orders from one of Newport’s largest front-end semiconductor customers, which were expected to be booked and shipped during 3Q03, caused an additional $1.5 million reduction in sales and orders for the quarter.
Duester adds that, 'While our third quarter sales and orders are less than we had anticipated, we expect our sales and orders for the fourth quarter of 2003 will be greater than those we recorded in either the second or third quarters of 2003.'
The company currently expects new orders for 3Q03 to be $35 million to $37 million. Newport will announce its 3Q03 results on Oct. 29, and will provide further guidance at that time.
Control Engineering Daily News Desk
Jim Montague, news editor