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EARNINGS

Newport's Net Income for 2nd Quarter $1.27 Million

February 28, 1986

Newport Corp., a Fountain Valley manufacturer of laser research equipment, said net income for its second quarter, ended Jan. 31, declined 20% to $1.27 million from $1.6 million. Sales for the period increased 13.5% to $9.2 million from $8.1 million.

In the first six months of its 1986 fiscal year, Newport's net income dropped 19% to $2.9 million from $3.6 million while sales increased 9.6% to $18.9 million from $17.2 million.

Earnings were lower because the sales increase was not enough to cover the costs of doubling the size of Newport's manufacturing plant and adding a layer of management to help the company grow, said Walter J. Ludt, vice president, secretary and treasurer of Newport Corp.

The modest sales gain, he said, was caused by a slowdown in government-funded contracts and a drop in December shipments to customers--the result of a delay while a large part of Newport's manufacturing equipment was moved into the enlarged facility.

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