Newport Corporation Q3 2009 Earnings Call Transcript

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2009-10-28 18:35:17.0

Tags: Call Transcript, Order, Earnings, Semiconductors, Sales Strategy, Hardware, Sales, Seeking Alpha, Newport Corp.

Question-and-Answer Session

Operator

(Operator instructions) Our first question comes from Mark Douglass of Longbow Research. Please go ahead.

Mark Douglass – Longbow Research

Good afternoon.

Robert Phillippy

Hi, Mark.

Chuck Cargile

Hi, Mark.

Mark Douglass – Longbow Research

Congratulations on getting lasers profitable.

Robert Phillippy

Thank you.

Chuck Cargile

Thanks.

Mark Douglass – Longbow Research

A very good sign. Can we go into the orders a little bit? You said that the sequential increase in micro was primarily due to semi cap OEMs.

Chuck Cargile

That’s correct.

Mark Douglass – Longbow Research

Okay. Can you say how much of say New Focus is in there or even in scientific?

Chuck Cargile

Well, yes, the New Focus in total that was about $5 million, which is in keeping with what we said when we acquired them last quarter, they do about $20 million for the year, probably a little more than half research.

And we also saw – also as part of the increase in orders, there was a little bit of an uptick in photovoltaic orders as well, so that’s why it’s primarily microelectronics or primarily semiconductor within microelectronics.

Mark Douglass – Longbow Research

Okay, okay that’s helpful. And then if we look at the orders again, particularly in scientific and micro, and I think scientific and research probably have more of a turns business, but how long would you expect orders to turn into sales?

Chuck Cargile

Generally in research as you say, it’s pretty quick turn. And then for semiconductor it varies by product line of course.

Robert Phillippy

And it varies by program, it can be all over the map. In a number of cases, we will get blanket orders that will be 12 months in duration and even that is a subject to pull-ins and push-outs based on market dynamics. So that the orders pattern in semiconductor equipment in particular and microelectronics in general doesn’t necessarily directly correlate with the sales pattern, whereas the research correlation is quite a bit closer.

Chuck Cargile

Mark, let me – I think I – let me try this way. I think I know where you’re going. We did increase orders a little bit more than we thought we would. And so let’s say if we were going to do about we had thought we might be maybe in the $85 million, $86 million, we did $92 million. But we also – but – so there is $6 million more of orders.

 

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