Shares of Irvine’s Newport Corp., a maker of industrial lasers, light filters and related gear, jumped Wednesday after the company outlined a series of steps to boost profits and gave a better than expected outlook for the rest of the year.
The stock rose about 7% at close of trading on a recent market value of about $360 million.
The company said it’s set to streamline operations, outsource some of its manufacturing to a new site in China and cut about 8% to 10% of its workforce.
The moves are expected to add $11 million to $14 million to its bottom line next year, the company said.
Newport revised its revenue outlook for the current quarter and boosted its expectations for the fourth quarter.
The company said it’s on track to see more than $35 million in orders this year.
For the current quarter, the company is looking for sales of $106 million to $112 million.
Analysts are expecting profits of $2 million on sales of $110 million.
In the fourth quarter, Newport is looking for profits of $5 million to $9 million on sales of $115 million to $125 million.
Wall Street’s looking for profits of $5 million on sales of $117 million.
The company said it expects to take roughly $18 million to $12 million in charges related to its cost-cutting plan, severance pay and other expenses.
Newport’s shares are off about 35% in the past year.
The company, a byproduct of the aerospace industry, started in the late 1960s selling lab tables for scientists needing a reliable workbench for their specialized laser gear.
Today Newport makes lasers and gear to control them for university researchers, chipmakers, laser eye surgery devices and factory equipment.
