Newport Corp. will lay off workers and take other cost cutting measures, the Irvine-based company announced at the close of intraday trading Tuesday, after missing revenue and profit targets for the June quarter.
The company, which makes lasers and related controls for telecommunications, chipmakers, researchers, medical companies and manufacturers, will shed $12 million from its payroll and other operatings in an effort “to improve profitability in light of current business conditions.”
“These targeted cost reductions are focused on specific business areas where we have experienced market weakness, and programs that are not achieving their targets,” Chief Executive Robert Phillippy said.
The company posted revenue of $148 million in the recent quarter, down 3.4% from a year earlier and missing Wall Street expectations of $151.4 million.
Adjusted profits hit $9.9 million, or 25 cents per share, down more than 27% from a year ago.
Analysts on average had forecast adjusted profits of $13.4 million.
Newport Corp. also announced the closure of its Massachusetts plant by the end of the year is on schedule and will save the company about $2 million next year.
The company expects sluggish business conditions to continue in the current quarter with sales in line with the June quarter.
That’s below Wall Street estimates of $154.4 million.
Adjusted profits are projected between $10.6 million and $12.2 million.
Analysts are forecasting adjusted profits $13.4 million.
Newport Corp. shares were down 2.7% in midday trading Wednesday to a market value of about $598 million.
