<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
***
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1997
--------------------------------------
OR
[X] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________ to _____________
Commission File Number 0-1649
------
NEWPORT CORPORATION
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Nevada 94 - 0849175
- --------------------------------------------------------------------------------
(State or other Jurisdiction (IRS Employer
of incorporation or organization) Identification No.)
1791 Deere Avenue, Irvine, CA 92606
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (714) 863-3144
------------------------------
N/A
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
---- ----
The number of shares outstanding of each of the issuer's classes of common stock
as of September 30, 1997, was 9,020,110.
Page 1 of 13 Pages
Exhibit Index on Sequentially Numbered Page 12
<PAGE>
NEWPORT CORPORATION
INDEX
<TABLE>
<S> <C>
PART I. FINANCIAL INFORMATION Page Number
Item 1: Financial Statements:
Consolidated Statement of Income and Condensed
Consolidated Statement of Stockholders' Equity for
the Three and Nine Months ended September 30, 1997 and 1996. 3
Consolidated Balance Sheet at September 30, 1997 and
December 31, 1996. 4
Consolidated Statement of Cash Flows for the Nine
Months ended September 30, 1997 and 1996. 5
Notes to Condensed Consolidated Financial
Statements. 6
Item 2: Management's Discussion and Analysis of Financial
Condition and Results of Operations. 8
PART II. OTHER INFORMATION
Item 6: Exhibits and Reports on Form 8-K. 12
SIGNATURE 12
</TABLE>
2
<PAGE>
NEWPORT CORPORATION
Consolidated Statement of Income and
Condensed Consolidated Statement of Stockholders' Equity
(Unaudited)
<TABLE>
<CAPTION>
(In thousands, except Three Months Ended Nine Months Ended
per share amounts) September 30, September 30,
------------------ ------------------
1997 1996 1997 1996
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net sales $32,699 $29,235 $95,611 $87,331
Cost of sales 18,734 16,527 54,186 49,317
------- ------- ------- -------
Gross profit 13,965 12,708 41,425 38,014
Selling, general and administrative expense 8,612 8,779 26,204 26,600
Research and development expense 2,492 1,896 6,958 5,866
------- ------- ------- -------
Income from operations 2,861 2,033 8,263 5,548
Interest expense (480) (504) (1,484) (1,417)
Other income (expense), net 99 113 (170) 332
------- ------- ------- -------
Income before income taxes 2,480 1,642 6,609 4,463
Income tax provision 711 526 2,115 1,429
------- ------- ------- -------
Net income $ 1,769 $ 1,116 $ 4,494 $ 3,034
======= ======= ======= =======
Net income per share $0.19 $0.12 $0.49 $0.34
==== ==== ==== ====
Number of shares used to calculate
net income per share 9,285 9,028 9,140 8,990
===== ===== ===== =====
Stockholders' equity, beginning of period $58,162 $53,688 $57,429 $52,687
Net income 1,769 1,116 4,494 3,034
Dividends -0- -0- (179) (351)
Unrealized translation gain (loss) 293 353 (1,872) (803)
Unamortized deferred compensation 51 89 (22) (224)
Repurchase of common stock (355) -0- (1,698) -0-
Issuance of common shares 690 233 2,458 1,136
------- ------- ------- -------
Stockholders' equity, end of period $60,610 $55,479 $60,610 $55,479
======= ======= ======= =======
</TABLE>
See accompanying notes
3
<PAGE>
NEWPORT CORPORATION
Consolidated Balance Sheet
<TABLE>
<CAPTION>
(Dollars in thousands, except per share amounts)
September 30, December 31,
1997 1996
------------- -----------
<S> <C> <C>
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $ 6,576 $ 3,375
Customer receivables, net 21,577 23,418
Other receivables 895 2,075
Inventories 29,210 28,954
Deferred tax assets 2,877 3,004
Other current assets 2,508 1,703
------- -------
Total current assets 63,643 62,529
Investments and other assets 4,851 5,191
Property, plant and equipment, at cost, net 23,738 24,045
Goodwill, net 10,335 11,612
-------- --------
$102,567 $103,377
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 6,583 $ 8,128
Accrued payroll and related expenses 5,135 4,879
Taxes based on income 1,706 1,373
Current portion of long-term debt 611 1,236
Other accrued liabilities 4,133 5,171
-------- --------
Total current liabilities 18,168 20,787
Long-term debt 22,740 23,464
Other liabilities 1,049 1,697
Commitments and contingencies
Stockholders' equity:
Common stock, $.35 stated value, 20,000,000 shares authorized;
9,020,000 shares issued outstanding at September 30, 1997;
8,890,000 shares at December 31, 1996 3,163 3,110
Capital in excess of stated value 9,666 8,959
Unamortized deferred compensation (570) (548)
Unrealized translation loss (4,314) (2,442)
Retained earnings 52,665 48,350
-------- --------
Total stockholders' equity 60,610 57,429
-------- --------
$102,567 $103,377
======== ========
</TABLE>
See accompanying notes
4
<PAGE>
NEWPORT CORPORATION
Consolidated Statement of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
--------------------
(In thousands) 1997 1996
------- ---------
<S> <C> <C>
Operating activities:
Net income $ 4,494 $ 3,034
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 4,430 3,446
Increase in provision for losses on
receivables and inventories 1,001 706
Other non-cash items, net (160) (122)
Changes in operating assets and liabilities:
Receivables 1,547 239
Inventories (1,951) (4,257)
Other current assets (1,472) (177)
Other assets 391 -0-
Accounts payable and other accrued expenses (626) (76)
Taxes based on income 341 7
Other, net 535 337
------- --------
Net cash provided by operating activities 8,530 3,137
------- --------
Investing activities:
Purchases of property, plant and equipment, net (3,783) (5,035)
Acquisition of businesses, net of cash acquired (879) (4,442)
Other, net (193) -0-
------- --------
Net cash used in investing activities (4,855) (9,477)
Financing activities:
Decrease in short-term borrowings (430) (23,667)
Increase (decrease) in long-term borrowings (463) 11,749
Proceeds from debt placement -0- 20,000
Cash dividends paid (357) (351)
Repurchase of common stock (1,698) -0-
Issuance of common stock under employee
agreements, including associated tax benefit 2,283 747
------- --------
Net cash provided by (used in) financing activities (665) 8,478
------- --------
Effect of foreign exchange rate changes on cash 191 46
------- --------
Net increase in cash and cash equivalents 3,201 2,184
Cash and cash equivalents at beginning of period 3,375 1,524
------- --------
Cash and cash equivalents at end of period $ 6,576 $ 3,708
======= ========
Cash paid in the period for:
Interest 1,108 697
Taxes 1,784 1,353
</TABLE>
See accompanying notes
5
<PAGE>
NEWPORT CORPORATION
Notes to Condensed Consolidated Financial Statements
September 30, 1997
(Unaudited)
1. Interim Reporting
General
The accompanying unaudited financial statements consolidate the accounts of the
Company and its wholly-owned subsidiaries and have been prepared in accordance
with generally accepted accounting principles for interim financial information.
The accounts of the Company's subsidiaries in Europe have been consolidated
using a one-month lag.
In the opinion of management, all adjustments necessary for a fair presentation
of the information in the unaudited condensed consolidated financial statements
have been made and consist of only normal recurring accruals. Operating results
for the nine-month period ended September 30, 1997, are not necessarily
indicative of the results that may be expected for the year ending December 31,
1997. Although the Company believes that the disclosures in these financial
statements are adequate to make the information presented not misleading,
certain information and footnotes normally included in financial statements
prepared in accordance with generally accepted accounting principles have been
condensed or omitted pursuant to rules and regulations of the Securities and
Exchange Commission, and consequently, these statements should be read in
conjunction with the Company's consolidated financial statements and notes
thereto, contained in the Company's Annual Report on Form 10-K for the year
ended December 31, 1996.
Earnings per Share
Earnings per share is based on the weighted average number of shares of common
stock and the dilutive effects of common stock equivalents (stock options),
determined using the treasury stock method.
In February 1997 the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 128, Earnings per Share, effective for both
interim and annual periods ending after December 15, 1997. At that time, the
Company will be required to change the method currently used to compute earnings
per share and to restate all prior periods. The impact of this Statement on the
calculation of primary and fully diluted earnings per share for the three- and
nine-months ended September 30, 1997 and 1996 is not expected to be material.
Foreign Currency
Balance sheet accounts denominated in foreign currencies are translated at
exchange rates as of the date of the balance sheet and income statement accounts
are translated at average exchange rates for the period. Translation gains and
losses are accumulated as a separate component of stockholders' equity. The
Company has adopted local currencies as the functional currencies for its
subsidiaries because their principal economic activities are most closely tied
to the respective local currencies.
The Company may enter into foreign exchange contracts as a hedge against foreign
currency denominated receivables. It does not engage in currency speculation.
Market value gains and losses on contracts are recognized currently, offsetting
gains or losses on the associated receivables. Foreign currency transaction
gains and losses are included in current earnings. Foreign exchange contracts
totaled $6.8 million and $1.2 million at September 30, 1997, and December 31,
1996, respectively.
6
<PAGE>
NEWPORT CORPORATION
Notes to Condensed Consolidated Financial Statements
September 30, 1997
(Unaudited)
2. Customer Receivables
Customer receivables consist of the following:
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
(In thousands) ------------ ------------
<S> <C> <C>
Customer receivables $22,049 $23,942
Less allowance for doubtful accounts 472 524
------- -------
$21,577 $23,418
======= =======
</TABLE>
The Company maintains adequate reserves for potential credit losses. Such
losses have been minimal and within management's estimates. Receivables from
customers are generally unsecured.
3. Inventories
Inventories are stated at cost, determined on either a first-in, first-out
(FIFO) or average cost basis and do not exceed net realizable value.
Inventories consist of the following:
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
(In thousands) ------------ ------------
<S> <C> <C>
Raw materials and purchased parts $10,585 $10,706
Work in process 5,564 4,998
Finished goods 13,061 13,251
------- -------
$29,210 $28,954
======= =======
</TABLE>
4. Property, Plant and Equipment
Property, plant and equipment consist of the following:
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
(In thousands) ------------ ------------
<S> <C> <C>
Land $ 1,981 $ 2,155
Buildings 12,191 12,896
Leasehold improvements 8,385 8,462
Machinery and equipment 21,485 22,643
Office equipment 11,097 9,734
------- -------
55,139 55,890
Less accumulated depreciation 31,401 31,845
------- -------
$23,738 $24,045
======= =======
</TABLE>
5. Other Income (Expense), Net
Other income (expense), net, consists of the following:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
(In thousands) 1997 1996 1997 1996
------- -------- ------- ------
<S> <C> <C> <C> <C>
Interest and dividend income $ 45 $ 31 $ 114 $ 63
Exchange gains (losses), net (63) 116 (419) 170
Other 117 (34) 135 99
---- ---- ----- ----
$ 99 $113 $(170) $332
==== ==== ===== ====
</TABLE>
7
<PAGE>
NEWPORT CORPORATION
Management's Discussion and Analysis of
Financial Condition and Results of Operations
Three and Nine Months Ended September 30, 1997 and 1996
INTRODUCTORY NOTE
This Quarterly Report on Form 10-Q contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934 and the Company intends that such
forward-looking statements be subject to the safe harbors created thereby.
These forward-looking statements include (i) the existence and development of
the Company's technical and manufacturing capabilities, (ii) anticipated
competition, (iii) potential future growth in revenues and income, (iv)
potential future decreases in costs, and (v) the need for, and availability of,
additional financing.
The forward-looking statements included herein are based on current expectations
that involve a number of risks and uncertainties. These forward-looking
statements are based on assumptions that the Company will not lose a significant
customer or customers or experience increased fluctuations of demand or
rescheduling of purchase orders, that the Company's markets will continue to
grow, that the Company's products will remain accepted within their respective
markets and will not be replaced by new technology, that competitive conditions
within the Company's markets will not change materially or adversely, that the
Company will retain key technical and management personnel, that the Company's
forecasts will accurately anticipate market demand, that there will be no
material adverse change in the Company's operations or business, that
fluctuations in foreign currency exchange rates do not have a material adverse
impact on the Company's competitive position in international markets and that
the Company will not experience significant supply shortages with respect to
purchased components, sub-systems or raw materials. Additional factors that may
affect future operating results are discussed in more detail in the Company's
Annual Report on Form 10-K for the year ending December 31, 1996. Assumptions
relating to the foregoing involve judgments with respect to, among other things,
future economic, competitive and market conditions, and future business
decisions, all of which are difficult or impossible to predict accurately and
many of which are beyond the control of the Company. In addition, the business
and operations of the Company are subject to substantial risks which increase
the uncertainty inherent in the forward-looking statements. In light of the
significant uncertainties inherent in the forward-looking information included
herein, the inclusion of such information should not be regarded as a
representation by the Company or any other person that the objectives or plans
of the Company will be achieved.
The following is management's discussion and analysis of certain significant
factors which have affected the earnings and financial position of the Company
during the period included in the accompanying financial statements. This
discussion compares the three- and nine-month periods ended September 30, 1997
with the three- and nine-month periods ended September 30, 1996. This
discussion should be read in conjunction with the financial statements and
associated notes.
8
<PAGE>
NEWPORT CORPORATION
Management's Discussion and Analysis of
Financial Condition and Results of Operations (Cont'd)
Three and Nine Months Ended September 30, 1997 and 1996
RESULTS OF OPERATIONS
FINANCIAL ANALYSIS:
<TABLE>
<CAPTION>
Period-to-Period
Increase (decrease)
------------------
Percentage of Net Sales Three Nine
----------------------- Months Months
Three Months Ended Nine Months Ended Ended Ended
September 30, September 30, September 30,
1997 1996 1997 1996 1997 1997
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net sales 100.0% 100.0% 100.0% 100.0% 11.8% 9.5%
Cost of sales 57.3 56.5 56.7 56.5 13.4 9.9
----- ----- ----- -----
Gross profit 42.7 43.5 43.3 43.5 9.9 9.0
Selling, general and
administrative expense 26.4 30.1 27.4 30.5 (1.9) (1.5)
Research and
development expense 7.6 6.5 7.3 6.7 31.4 18.6
----- ----- ---- ----
Income from operations 8.7 6.9 8.6 6.3 40.7 48.9
Interest expense (1.4) (1.6) (1.5) (1.6) (4.8) 4.7
Other income (expense), net 0.3 0.3 (0.2) 0.4 (12.4) (151.2)
Income taxes (2.2) (1.8) (2.2) (1.6) 35.2 48.0
----- ----- ---- ----
Net income 5.4% 3.8% 4.7% 3.5% 58.5 48.1
=== === === ===
</TABLE>
NET SALES:
Sales for the three- and nine-month periods ended September 30, 1997, were $32.7
million and $95.6 million, respectively, compared with $29.2 million and $87.3
million for the three- and nine-month periods ended September 30, 1996,
increasing 11.8% and 9.5% over the respective prior year periods. Increases for
the three- and nine-month periods were primarily driven by the U.S. domestic
market, where sales grew $4.8 million and $11.2 million, respectively,
offsetting lower international sales in both periods. For the year to date
period, the Company has experienced sales growth in its targeted market
segments, specifically fiber optic communications, semiconductor test equipment
and computer peripherals, where sales have increased 22.7% versus both the
three- and nine-month periods of the prior year. The Company believes that this
sales growth reflects the Company's success in leveraging its expertise in
research laboratory equipment to expand its product offerings of high precision
optics, instruments, micro-positioning and measurement products and systems to
customers in these markets.
The Company's domestic sales totaled $22.9 million and $62.8 million for the
three- and nine-month periods ended September 30, 1997, compared with $18.1
million and $51.6 million for the three- and nine-month periods ended September
30, 1996, increases of 26.5% and 21.7% versus the respective prior year periods.
The Company experienced sales gains in its targeted market segments as well as
in its core scientific research market. In particular, MikroPrecision
Instruments sales of $3.0 million and $8.9 million for the third quarter and
nine months, respectively represent growth of 30.9% and 53.0% versus comparable
prior year periods.
International sales of the Company were $9.8 million and $32.8 million for the
three- and nine-month periods ended September 30, 1997, respectively, compared
with $11.1 million and $35.7 million for the three- and nine-month periods ended
September 30, 1996, decreases of 11.7% and 8.1% for the respective periods.
Sales were negatively impacted by foreign exchange rate effects of $0.8 million
and $2.1 million for the three- and nine-month periods ended September 30, 1997,
respectively, as a result of the significant strengthening of the U.S. dollar
against European currencies. Excluding the negative impact of foreign exchange
rate effects, sales in France declined $0.9 million and $2.4 million for the
same respective periods; while sales in Germany grew $0.4 million and $0.8
million for the third quarter and year to date versus corresponding 1996
periods. The United Kingdom continued its positive trend versus prior year with
sales growth, excluding the negative exchange rate effect, of $0.1 million and
$0.7 million for the third quarter and year to date, respectively.
9
<PAGE>
NEWPORT CORPORATION
Management's Discussion and Analysis of
Financial Condition and Results of Operations (Cont'd)
Three and Nine Months Ended September 30, 1997 and 1996
NET SALES (Cont'd):
Domestic orders reflect substantial growth for both the third quarter and the
year to date over the corresponding prior year periods. European orders
increased over the prior year as well, although at a modest rate. Overall,
management anticipates sales growth in the final quarter of 1997 over the 1996
fourth quarter and attributes this growth primarily to increased sales to
customers in the Company's targeted strategic markets.
GROSS PROFIT:
Gross profit increased 9.9% and 9.0% on sales increases of 11.8% and 9.5% for
the three- and nine-month periods ended September 30, 1997 compared with the
three- and nine-month periods ended September 30, 1996, respectively. However,
gross margin (gross profit as a percentage of sales) decreased to 42.7% and
43.3% of sales for the three- and nine-month periods ended September 30, 1997,
compared with 43.5% in both the three- and nine-month periods ended September
30, 1996. This slight margin decline is principally attributable to the growth
in sales to OEM customers in the Company's targeted strategic markets which
generally have a lower margin. Mitigating the mix driven margin decline is the
fact that sales and marketing expenses associated with sales to OEM customers
are generally lower than expenses incurred in selling to the Company's other
customers.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES:
Selling, general and administrative (SG&A) expenses for the three- and nine-
month periods ended September 30, 1997, decreased 1.9% and 1.5%, respectively,
compared with the three- and nine-month periods ended September 30, 1996. SG&A
expenses when stated as a percentage of sales were 26.4% and 27.4%, compared
with 30.1% and 30.5% for the prior year periods. The decrease in SG&A expenses
is principally due to successful cost containment measures, lower selling
expenses associated with sales to OEM customers and a favorable exchange rate
effect. Management anticipates this favorable exchange rate effect on SG&A
expenses will continue through the remainder of 1997.
RESEARCH AND DEVELOPMENT EXPENSES:
Research and development (R&D) expenses for the three- and nine-month periods
ended September 30, 1997 increased 31.4% and 18.6%, respectively, compared with
the three- and nine-month periods ended September 30, 1996. R&D expenses when
stated as a percentage of sales increased to 7.6% and 7.3%, compared with 6.5%
and 6.7% for the prior year periods. The increases were principally
attributable to expenses associated with new product introductions, including an
advanced motion controller system and a line of active isolation workstations,
as well as continued enhancement of existing products. Management is committed
to continued product development and anticipates that R&D spending will increase
by approximately $1.4 million dollars in 1997 over 1996 for development of new
products and product improvements.
INTEREST EXPENSE AND OTHER INCOME:
Interest expense for the quarter and year-to-date periods ended September 30,
1997, was $0.5 million and $1.5 million respectively, compared with $0.5 million
and $1.4 million for the same periods in 1996. Other income, net was $0.1
million in both the 1997 and 1996 third quarters. Year to date, other income
(expense), net was a $0.2 million loss versus a $0.3 million gain in the
corresponding 1996 period, the change being largely attributable to foreign
exchange losses totaling $0.3 million which occurred during the first quarter of
1997.
10
<PAGE>
NEWPORT CORPORATION
Management's Discussion and Analysis of
Financial Condition and Results of Operations (Cont'd)
Three and Nine Months Ended September 30, 1997 and 1996
PROVISION FOR TAXES:
The effective annual tax rates for the three- and nine-month periods ended
September 30, 1997 were 28.7% and 32.0%, respectively, compared with 32% for
both corresponding 1996 periods. The lower 1997 third quarter tax rate reflects
the tax benefit associated with higher sales through the Company's Foreign Sales
Corporation.
LIQUIDITY AND CAPITAL RESOURCES:
Net cash provided by operating activities of $8.5 million for the nine-month
period ended September 30, 1997, was principally attributable to the Company's
net income ($4.5 million), non-cash items, primarily depreciation and
amortization ($4.4 million), decreases in receivables ($1.5 million) and
increase in provision for losses on receivables and inventories ($1.0 million).
Partially offsetting these amounts were increases in certain other operating
assets, principally inventories ($2.0 million), and prepaid expenses, primarily
advertising, ($1.5 million).
Net cash used in investing activities of $4.9 million for the nine-month period
ended September 30, 1997, was primarily attributable to the Company's purchases
of property, plant and equipment ($3.8 million) and the final payment due on the
acquisition of MikroPrecision Instruments ($0.9 million).
Net cash used in financing activities of $0.7 million for the nine-month period
ended September 30, 1997, was primarily due to the repurchase of common stock
and a decrease in borrowings, partially offset by issuance of common stock under
employee agreements.
In 1996, the Company obtained $20.0 million of long-term financing from an
insurance company which was used to refinance a significant portion of its
outstanding debt. These senior notes, sold at par, are unsecured, carry an
8.25% annual coupon and mature in May 2004.
The Company has a credit agreement with a U.S. bank for a $20.0 million
unsecured line of credit to support the Company's domestic operations and its
international operations outside of Europe and a 10.0 million French franc
unsecured line of credit to support the Company's European requirements, with
interest at prime, or LIBOR plus 1.0%. At September 30, 1997, no amounts were
outstanding on these lines of credit.
The Company believes its current working capital position together with
estimated cash flows from operations and its existing credit availability are
adequate to support its operations in the ordinary course of business, including
anticipated capital expenditures, stock repurchases and debt repayment
requirements, over at least the next year.
Although the Company has no present agreements or commitments with respect to
any material acquisitions of other businesses, products, product rights or
technologies, the Company continues to evaluate acquisitions of products,
technologies or companies that complement the Company's business and may make
such acquisitions in the future, and there can be no assurance that the Company
will not need to obtain additional sources of capital to finance any such
acquisitions.
11
<PAGE>
NEWPORT CORPORATION
PART II. OTHER INFORMATION
Item 6: Exhibits and Reports on Form 8-K.
(a) Exhibits
Exhibit 27 Financial Data Schedule
(b) Reports on Form 8-K
None
NEWPORT CORPORATION
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
NEWPORT CORPORATION
(Registrant)
Dated: November 10, 1997
By: /s/ ROBERT C. HEWITT
--------------------------------------
Robert C. Hewitt, Principal Financial
Officer, duly authorized to sign
on behalf of the Registrant
12
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S CONSOLIDATED STATEMENTS OF INCOME, CONSOLIDATED BALANCE SHEETS AND
CONSOLIDATED STATEMENTS OF CASH FLOWS AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS CONTAINED WITHIN THE COMPANY'S FORM 10-Q
FOR THE PERIOD ENDED JUNE 30, 1997.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1997
<CASH> 6,576
<SECURITIES> 0
<RECEIVABLES> 22,049
<ALLOWANCES> 472
<INVENTORY> 29,210
<CURRENT-ASSETS> 63,643
<PP&E> 55,139
<DEPRECIATION> 31,401
<TOTAL-ASSETS> 102,567
<CURRENT-LIABILITIES> 18,168
<BONDS> 22,740
0
0
<COMMON> 3,163
<OTHER-SE> 57,447
<TOTAL-LIABILITY-AND-EQUITY> 102,567
<SALES> 95,611
<TOTAL-REVENUES> 95,611
<CGS> 54,186
<TOTAL-COSTS> 54,186
<OTHER-EXPENSES> 33,162
<LOSS-PROVISION> 170
<INTEREST-EXPENSE> 1,484
<INCOME-PRETAX> 6,609
<INCOME-TAX> 2,115
<INCOME-CONTINUING> 4,494
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,494
<EPS-PRIMARY> 0.49
<EPS-DILUTED> 0.49
</TABLE>
