Despite a 7% increase in revenues, Fountain Valley-based Newport Corp. said profits during the first quarter of its fiscal 1986 fell by 18%.
Net earnings for the three months ended Oct. 31 dropped to $1.6 million from $2 million during the first quarter of fiscal 1985. Sales during the quarter rose to $9.6 million, compared with $9 million last year.
Walter Ludt, Newport's vice president, said increased research and development spending and the costs of adding 78,000-square-feet of manufacturing space to the company's headquarters were to blame for the drop in earnings.
Newport manufactures and sells laser instruments, components and accessories. If sales remain strong, Ludt said, second-quarter profits should show some improvement. "If the expected sales revenue comes in, we expect the earnings ought to continue to increase throughout the year," he said.