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.