NEWPORT CORPORATION AND OCLARO, INC. COMPLETE ASSET EXCHANGE TRANSACTION
Newport Acquires New Focus(TM) in Exchange for Diode Laser Business and $3 Million in Cash
IRVINE, Calif., July 6 /PRNewswire-FirstCall/ -- Newport Corporation (Nasdaq: NEWP) today announced it has completed its previously announced exchange of assets and cash with Oclaro, Inc. (Nasdaq: OCLR). Under the terms of the transaction, Newport has acquired Oclaro's New Focus(TM) business, which is comprised of a portfolio of high-performance photonics products that includes opto-electronics, high-resolution actuators, opto-mechanics, tunable lasers, vacuum and ultraclean solutions, and OEM-engineered solutions. Simultaneously, Oclaro has acquired Newport's high-power diode laser manufacturing operations, located in Tucson, Arizona, and received $3 million in cash.
The majority of the opto-mechanical products being acquired by Newport are being manufactured at Oclaro's plant in Shenzhen, China, and will be transferred to Newport's facility in Wuxi, China, approximately doubling the manufacturing output of that facility. Most of the lasers and electro-optical products that are currently manufactured by New Focus(TM) in San Jose, California, will be transferred to Newport's new Spectra-Physics Lasers Division facility in Santa Clara, California.
In addition, the two companies have entered into an agreement for Oclaro to be a strategic supplier of high-power diodes to Newport for incorporation into its Spectra-Physics laser products. Both companies will provide transition-related services to the other during an integration period of six to twelve months.
Robert Phillippy, Newport's president and chief executive officer said, "We are pleased to have successfully completed this transaction and are now moving forward with implementation of our integration plan. We plan to spend $3 million to $5 million in cash to complete the integration by the end of 2009, and we expect this transaction to generate $5 million to $8 million of incremental profit for Newport in 2010."
The company also noted that it anticipates adding approximately $7 million to $10 million in incremental sales in 2010 as a result of the transaction.
ABOUT NEWPORT CORPORATION
Newport Corporation is a leading global supplier of advanced-technology products and systems to customers in the scientific research, microelectronics, aerospace and defense/security, life and health sciences and precision industrial manufacturing markets. Newport's innovative solutions leverage its expertise in high-power semiconductor, solid-state and ultrafast lasers, photonics instrumentation, sub-micron positioning systems, vibration isolation, optical components and subsystems and precision automation 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.
SAFE HARBOR STATEMENT
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation the statements regarding High Q's expected revenue in 2011, the expectation that the acquisition will be accretive to Newport's earnings immediately after closing and other statements as to potential future events, consequences or results of the transaction. 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 are inherently speculative and involve judgments and risks with respect to a number of matters that are difficult or impossible to predict accurately and many of which are beyond the control of Newport. Certain of these judgments and the types of risks that may impact future results or circumstances are discussed in more detail in Newport's Form 10-K for the year ended January 1, 2011. Although Newport believes that the assumptions underlying the forward-looking statements in this press release are reasonable, any of the assumptions could prove inaccurate, and future events and results may differ materially from current projections or expectations as described in this press release. Therefore, there can be no assurance that the results contemplated in the 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 results set forth in such forward-looking statements will be achieved. Newport also 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, except to the extent expressly required by applicable law.
SOURCE Newport Corporation
CONTACT: Charles F. Cargile, Newport Corporation, Irvine, CA,
+1-949-863-3144, firstname.lastname@example.org, or Dan Peoples, Makinson Cowell (US),