TECHNOLOGY
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Newport Corp. to outsource, downsize
Profit improvement measures for the Irvine-based advanced-technology supplier include transferring some manufacturing to China.
By Susan BelknappPublished: September 02, 2008 10:25 AM
Newport Corp., a worldwide leader in high-technology products and systems, which include: scientific research, microelectronics, aerospace, defense/security and life and health sciences, among others, announced yesterday that it would be implementing measures to improve profits.
In a release directed to stockholders, Newport Corp. says that the actions are estimated to improve the company’s operating profit by $11 million to $14 million in 2009. The measures include transferring or outsourcing certain manufacturing processes, particularly the Laser’s Division, to the company’s new manufacturing facility in Wuxi, China and reduction of approximately 8 to 10 percent of the company’s global workforce.
In addition, streamlined administrative processes and cost reductions are expected to result after the company completes its three-year initiative to implement a common SAP software platform worldwide.
Newport Corp. reconfirmed that it expects revenue from third quarter of 2008 to be in the range of $106 million to $112 million and it expects the numbers for the fourth quarter to be even higher.
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Newport Corp., a worldwide leader in high-technology products and systems, which include: scientific research, microelectronics, aerospace, defense/security and life and health sciences, among others, announced yesterday that it would be implementing measures to improve profits. In a release directed to stockholders, Newport Corp. says that the actions are estimated to improve the company’s operating profit by $11 million to $14 million in 2009. The measures include transferring or outsourcing certain manufacturing processes, particularly the Laser’s Division, to the company’s new manufacturing facility in Wuxi, China and reduction of approximately 8 to 10 percent of the company’s global workforce. In addition, streamlined administrative processes and cost reductions are expected to result after the company completes its three-year initiative to implement a common SAP software platform worldwide. Newport Corp. reconfirmed that it expects revenue from third quarter of 2008 to be in the range of $106 million to $112 million and it expects the numbers for the fourth quarter to be even higher. |
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