This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Newport Corporation To Sell Micro Robotics Systems Business Unit

IRVINE, Calif. , Oct. 24, 2013 /PRNewswire/ -- Newport Corporation (Nasdaq: NEWP) today announced it has signed a letter of intent to sell the assets of its Micro Robotics Systems advanced packaging business ("MRSI") to a private investment group led by the local management team.   In the trailing twelve month period ended September 28, 2013, MRSI generated revenue of approximately $12 million, although the business did not contribute materially to Newport's operating income or cash flows.

Under the terms of the proposed transaction, Newport would receive $5.35 million in cash at closing and an unsecured promissory note in the principal amount of $0.65 million, with a term of seven years and an interest rate of 5%.   The buyer is expected to sublease the facility from Newport and retain substantially all of the employees.   The parties are currently negotiating the definitive agreements relating to the transaction, which will be subject to normal closing conditions and is expected to be finalized before the end of the year.

Commenting on the divestiture, Robert Phillippy, Newport's President and Chief Executive Officer, said: "The MRSI business is focused on the development and manufacturing of turn-key die bonding and dispensing systems.   Our focus is on providing solutions that leverage lasers, optics and photonics technologies, and the MRSI business no longer fits within Newport's long-term strategy.   Therefore, we believe it is in our best interest to sell the business.   Doing so will allow Newport to more efficiently deploy management's attention and corporate resources to those areas that hold the greatest growth potential and best leverage the core capabilities of our company."

MRSI's net assets at the end of the third quarter of 2013 were approximately $9.5 million.   Therefore, in accordance with generally accepted accounting principles, Newport will record a charge of $4.5 million in the third quarter of 2013 relating to the pending divestiture, including transaction costs of $0.4 million.  More information on the transaction will be provided during the company's third quarter earnings conference call, which is scheduled for Wednesday, October 30, 2013 at 5:00 p.m. Eastern time ( 2:00 p.m. Pacific time).

ABOUT NEWPORT CORPORATION  

Newport Corporation is a leading global supplier of advanced-technology products and systems to customers in the scientific research, microelectronics, life and health sciences, defense and security, and industrial manufacturing markets.   Newport's innovative solutions leverage its expertise in advanced technologies, including lasers, photonics and precision motion 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.

To download Newport's investor relations app, which offers access to its   SEC  filings, press releases, videos, audiocasts and more, please visit  Apple's App Store  for the iPhone and iPad or  Google Play  for Android mobile devices.

SAFE HARBOR STATEMENT

This news release contains forward-looking statements, including without limitation statements regarding the expected terms and timing of the proposed divestiture and its expected impact on Newport.   Without limiting the generality of the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate" or "continue" or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements.   Assumptions relating to the foregoing involve judgments and risks, all of which are difficult or impossible to predict accurately and many of which are beyond the control of Newport.   Certain of these judgments and risks are discussed in more detail in Newport's periodic reports filed with the Securities and Exchange Commission.   Although Newport believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the results contemplated in forward-looking statements will be realized.   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 Newport or any other person that Newport's objectives or plans will be achieved.   Newport undertakes no obligation to revise the forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Contact:

Charles F. Cargile, 949/863-3144Newport Corporation, Irvine , CA   investor@newport.com   or Rob Fink, 212/896-1206KCSA Strategic Communications   newport@kcsa.com

 

SOURCE Newport Corporation

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs