Irvine-based Newport Corp. saw fourth-quarter income double to $12 million while net income for all of 2006 tripled to $37.4 million, the maker of lasers and equipment to control them said Wednesday.
For the current quarter, Newport said it expects about $7 million in profits, below the $9.6 million Wall Street expected on average.
Newport also said it plans to offer about $150 million in debt. Roughly a third of the proceeds will be used to pay off debt to Thermo Electron Corp., from which Newport bought Spectra-Physics in 2004.
The move also is expected to save Newport on financing costs.
“We probably wouldn’t have paid it off except for that,” Chief Financial Officer Chuck Cargile said. “We’re paying $48 million today vs. $50 million two years from now.”
With cash on hand, Newport plans to buy back about 5% of its 42 million outstanding shares, Cargile said.
Newport has about $85 million in cash and other investments as of Dec. 31. Acquisitions could be possible, Cargile said.
“We are in an industry that’s somewhat ripe for acquisition,” he said. “It’s reasonable to expect we’ll use some of that for acquisitions at some point.”
For the current quarter, Newport said it expects about $7 million in profits, below what Wall Street had expected.
