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Feb. 5, 2013 /PRNewswire/ -- Newport Corporation (NASDAQ: NEWP) announced today that the Company expects to record a non-cash, non-tax-deductible impairment charge in the range of
$130 million to $140 million in the fourth quarter of 2012 related to its acquisition of Ophir Optronics Ltd. (
Ophir). This non-cash accounting charge will not impact the Company's liquidity, cash flows from operations, compliance with its debt covenants or any future operations.
As a result of the annual impairment test of the goodwill and other intangible assets of each of its reporting units required under generally accepted accounting principles (GAAP), Newport determined that a write down of the goodwill, intangible and other assets relating to
Ophir was required. The U.S. and international defense markets experienced a significant slowdown in 2012, and consequently,
Ophir's sales of products to these markets were lower than Newport had originally anticipated. Due primarily to the reduced amount of capitalized intangible assets following the charge, the Company expects its amortization expense in 2013 to be approximately
$7 million lower than the 2012 level.
Robert Phillippy, Newport's President and Chief Executive Officer said, "We remain confident in the strategic value and growth opportunities that
Ophir brings to Newport. Despite the severe disruption in the global defense industry,
Ophir had sales in 2012 of over
$100 million and generated approximately
$9 million of operating income and
$18 million of cash from operations. Although these amounts are lower than we expected when we acquired
Ophir, we believe the business is well-positioned to deliver strong growth and profitability when global macro-economic conditions stabilize, particularly as we continue to benefit from the synergies of combining its businesses with Newport's other operating units."
The Company also re-affirmed that it expects its sales, non-GAAP operating income and non-GAAP net income for the fourth quarter of 2012 to be similar to the results the company recorded in the third quarter of 2012, consistent with the guidance it provided in its press release on
October 31, 2012.
Newport's President and Chief Executive Officer,
Robert Phillippy, and Senior Vice President and Chief Financial Officer,
Charles Cargile, will discuss the impairment charge during their presentation at the 2013 Stifel Nicolaus Technology Conference at
12:10 pm EST (
9:10 am PST) on Wednesday, February 6, 2013 at the Ritz-Carlton Hotel in
San Francisco. The presentation can be heard through a live audio webcast that can be accessed at
http://bit.ly/WQDGpo and on the Newport investor relations website at
www.newport.com/investors. The materials presented at the conference will also be available on these sites during the webcast. A replay of the presentation will be available for 90 days following the live presentation at these sites.
FOURTH QUARTER 2012 CONFERENCE CALL
Newport plans to announce its 2012 fourth quarter and full year results after the U.S. market close on
Wednesday, February 20, 2013, at which time Newport's senior management will host an investor conference call to review the company's financial results and business outlook. Further information regarding this conference call will be provided prior to the call.
ABOUT NEWPORT CORPORATION
Newport Corporation is a leading global supplier of advanced-technology products and systems to customers in the scientific research, defense/security, microelectronics, life and health sciences and industrial manufacturing markets. Newport's innovative solutions leverage its expertise in advanced technologies, including lasers, photonics equipment and optical components and sub-systems, to enhance the capabilities and productivity of its customers' manufacturing, engineering and research applications. Newport is part of the Standard & Poor's SmallCap 600 Index and the Russell 2000 Index.