IRVINE, Calif., July 20 /PRNewswire-FirstCall/ -- Newport Corporation (Nasdaq: NEWP) today announced that it has completed the sale of the stock of its Hilger Crystals subsidiary to Dynasil Corporation (OTC Bulletin Board: DYSL), a provider of technology, products, services and solutions in the medical, industrial and homeland security/defense markets.
Hilger, based in Margate, UK, manufactures and sells a variety of synthetic crystals and detectors, imaging arrays and materials, primarily for x-ray detection applications. Under the terms of the transaction, Newport received $4.0 million in cash at closing. In addition, if the Hilger Crystals business achieves certain specified sales targets in the 18 months following the closing, Newport will receive up to $750,000 of additional cash.
Newport expects to record a charge in the second quarter of 2010 of approximately $0.8 million relating to deal costs and a pension curtailment expense associated with this business. In the third quarter of 2010, Newport expects to record a gain on the sale of this business that will be substantially offset by additional charges relating to the termination of Hilger's pension plan. Hilger Crystals' revenues were $2.0 million in the full year 2009 and $1.5 million in the first half of 2010. The company will provide additional information regarding the transaction in its conference call on July 28, 2010, regarding Newport's second quarter operating results.
ABOUT NEWPORT CORPORATION
Newport Corporation is a leading global supplier of advanced-technology products and systems to customers in the scientific research, microelectronics, aerospace and defense/security, life and health sciences and precision industrial manufacturing markets. Newport's innovative solutions leverage its expertise in high-power semiconductor, solid-state and ultrafast lasers, photonics instrumentation, sub-micron positioning systems, vibration isolation, optical components and subsystems and precision automation to enhance the capabilities and productivity of its customers' manufacturing, engineering and research applications. Newport is part of the Standard & Poor's SmallCap 600 Index and the Russell 2000 Index.
SAFE HARBOR STATEMENT
This news release contains forward-looking statements, including without limitation the statement regarding the potential for Newport to receive additional cash payment based upon Hilger Crystals' future financial performance and the charges and gain on sale expected to be recorded in connection with the transaction. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Assumptions relating to the foregoing involve judgments and risks, some of which are discussed in more detail in Newport's Annual Report on Form 10-K for the year ended January 2, 2010. Although Newport believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the results contemplated in forward-looking statements will be realized. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by Newport or any other person that Newport's objectives or plans will be achieved. Newport undertakes no obligation to revise the forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
|SOURCE Newport Corporation|
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