November 8, 2013—Newport Corporation (Irvine, Calif., U.S.A.) announced November 4 the signing of an agreement worth $14 million to collaborate with an OEM customer on the development of “opto-mechanical subsystems for a next-generation semiconductor equipment application.” The agreement states that Newport will design the sub-assemblies alongside the customer and will manufacture prototypes and related equipment. The development program is already underway. The company expects the first prototype units to be delivered in mid-2014.
In Newport’s October 30 earnings call, the company credited three “design wins for collaborative development programs” for a 4 percent increase in orders from microelectronics customers. The three programs included opto-mechanical sub-assemblies, one for development of extreme UV equipment and two for deep UV. Prototype units for all three programs are scheduled for delivery in 2014.
As of market close on November 7, the company’s stock was $16.73 per share, up 13.7 percent from $14.71 per share before the announcement. Following the earnings results and the company’s stated $19 per share target, Needham & Company upgraded Newport from “hold” to “buy” status.