Newport Cuts Outlook, Jobs

IRVINE, Calif., Sept. 17 -- Newport Corp. has reduced its outlook for sales and profits for the second half of fiscal 2001 because of continued weakness in its end-markets. The company said it would take a charge in the current quarter, its fiscal third, of $38.5 million to cover cost-cutting measures including between 350 and 375 layoffs, a higher total than had previously been announced. In July, Newport had said it would lay off between 180 and 200 staff.

The company projected revenues for the current quarter of $58 million to $62 million, which is $10 million to $14 million below previous estimates. Newport said fourth quarter sales will be flat compared with the current quarter.