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Newport Management Discusses Q2 2012 Results - Earnings Call Transcript

Newport (NEWP)

Q2 2012 Earnings Call

August 01, 2012 5:00 pm ET

Executives

Robert J. Phillippy - Chief Executive Officer, President and Director

Charles F. Cargile - Chief Financial Officer, Senior Vice President and Treasurer

Analysts

Mark S. Miller - Noble Financial Group, Inc., Research Division

D. Mark Douglass - Longbow Research LLC

Lawrence Solow - CJS Securities, Inc.

James Ricchiuti - Needham & Company, LLC, Research Division

Patrick M. Newton - Stifel, Nicolaus & Co., Inc., Research Division

Presentation

Operator

Ladies and gentlemen, Good day, and welcome to the Newport Corporation Second Quarter 2012 Conference Call. Please note today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Robert Phillippy, President and Chief Executive Officer. Please go ahead.

Robert J. Phillippy

Thank you. Good afternoon, and welcome to Newport's second quarter 2012 conference call. With me is our Chief Financial Officer, Chuck Cargile.

Before we get started, I'd like to remind you that during the course of this conference call, we will be making a number of forward-looking statements that are based on our current expectations and involve various risks and uncertainties that are discussed in our periodic SEC filings. Although we believe that the assumptions underlying these statements are reasonable, any of them could prove inaccurate, and there can be no assurance that the results will be realized.

The Newport team continued to execute well in the second quarter of 2012. We achieved non-GAAP operating income of $20.2 million or 13.1% of sales and generated $15.1 million in cash from operations. Both of these numbers increased sequentially despite a slight reduction in revenue caused by challenging conditions in some of our end markets. While these challenges were not unique to Newport, our team responded to them quickly and effectively. We are also implementing a plan to achieve cost savings of $15 million on an annualized basis. These savings will come from a combination of synergies from our recent acquisitions and other business streamlining. We'll touch on both of these topics again later on the call.

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