IRVINE, Calif., June 3, 2002 (PRIMEZONE) -- Newport Corporation (Nasdaq:NEWP) today announced it has completed the sale of its U.S.-based non-contact metrology business to an affiliate of Optical Gaging Products (OGP) of Rochester, New York, a privately held designer and manufacturer of precision non-contact and multi-sensor coordinate-measuring systems used for dimensional inspection. The transaction is the second part of an earlier announced two-step plan by Newport to sell the majority of its Industrial Metrology Systems Division.
On May 13, 2002, Newport announced that it had completed the first step in this plan by selling its contact measurement metrology business, primarily relating to its CEJohansson subsidiary in Sweden, to Hexagon AB (Stockhomsborsen:HEXAB), also based in Sweden. Hexagon is a multinational engineering company and parent of Brown and Sharpe, a metrology company headquartered in North Kingstown, Rhode Island.
Total cash proceeds from both transactions, as announced earlier, are expected to be approximately $11 million. The transactions will be accretive to Newport's operating results as the divestitures eliminate continuing losses in the company's metrology business.
Newport's combined metrology operations generated sales of approximately $24 million in 2001 and incurred operating losses of approximately $9 million. The business represented approximately $32 million of Newport's total assets of $544 million as of December 31, 2001.
About Newport Corporation
Newport Corporation is a global leader in the design, manufacture and marketing of high precision components, instruments and integrated systems to the fiber optic communications, semiconductor equipment, aerospace and research markets. The company's innovative products are designed to enhance productivity and capabilities of test and measurement and automated assembly for precision manufacturing, engineering and research applications. Customers include Fortune 500 corporations, technology companies and research laboratories in commercial, academic and government sectors worldwide. Newport is part of the Standard & Poor's Midcap 400 Index and the Russell 2000 Index.
The statements in this news release, including the expected effects of the transaction on Newport's operating results, are forward-looking statements that involve a number of risks and uncertainties. As discussed in Newport's Annual Report on Form 10-K for the year ended December 31, 2001, assumptions relating to the foregoing involve judgments with respect to, among other things, the effect of any post-closing adjustments on the proceeds received from the sales; future economic, competitive and market conditions, including those in Europe and Asia and those related to Newport's strategic markets, particularly the fiber optics and semiconductor equipment markets; whether the products offered by Newport will continue to achieve customer acceptance; and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of Newport. 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 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 Newport's objectives or plans will be achieved. Newport undertakes no obligation to revise the forward-looking statements contained herein to reflect such events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.