MIRA INFORM REPORT

Report Date :

08.04.2011

IDENTIFICATION DETAILS

Name :	NEWPORT CORPORATION
Registered Office :	1000 East William Street Suite 204 - Carson City - NV 89701
Country :	United States
Financials (as on) :	01.01.2011
Date of Incorporation :	09.11.1938
Legal Form :	Corporation for Profit
Line of Business :	Subject Develops, Manufactures, and Markets technology products and systems to various industries worldwide

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 3,000,000.
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – December 31, 2010

Country Name	Previous Rating (30.09.2010)	Current Rating (31.12.2010)
United States	a1	a1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

GEOPOLITICS - UNITED STATES

POLITICAL DATA	ECONOMIC DATA
Form of Government: Federal Economic Risk: Nil	Currency: USD Branch Situation: Stable

IDENTIFICATION

Ordered as:	Newport Corporation
Address in the order:	Spectra Physics Laser Division 3635, Peterson Way Santa Clara CA 95054
Comments on data supplied:	Dear client, Spectra Physics Laser Division is a non incorporated business unit of Newport Corporation.
Legal Name:	Newport Corporation
Legal Address	1000 East William Street Suite 204 - Carson City - NV 89701 - USA (Registered agent address)
Operative Address	3635 Peterson Way Santa Clara, CA 95054 USA (Headquarters)
Telephone:	949-863-3144	ID :	C325-1938
Fax:	949-253-1680	Legal Form:	Corporation for Profit
Email:	sales@spectra-physics.com	Registered in:	Nevada
Website:	http://www.newport.com	Date Created:	1938
Manager:	Robert J Phillippy, President	Date Incorporated:	November, 9th. 1938
Staff:	1,745	Stock:	200,000,000.00
		Value:	$ 0.1167
Activity:	Newport Corporation develops, manufactures, and markets technology products and systems to various industries worldwide.

BANKS

Name of the Bank

BANK OF AMERICA, N.A.

BUSINESS

HISTORY
	The company was founded in 1938
PRINCIPAL ACTIVITY
	Newport Corporation develops, manufactures, and markets technology products and systems to various industries worldwide.
Products/Services description:
	The company operates in two divisions, Photonics and Precision Technologies (PPT), and Lasers. The PPT division offers photonics instruments and systems, precision positioning systems and subsystems, vibration isolation systems and subsystems, optics, optical hardware, opto-mechanical subassemblies, and crystals. The Lasers division provides ultrafast lasers and amplifiers, diode-pumped solid-state lasers, pulsed lasers, tunable lasers, gas lasers, and diode lasers.
Sales are:
	Wholesale, Retail
Brands:
	New Focus Newport Oriel Richardson Gratings Spectra-Physics
Clients:
	Miscellaneous, depending on the demand
Operations area:
	National, International
The company imports from worldwide, depending on the demand
The company export to worldwide, depending on the demand
Competitors:
	Coherent, Inc.; CVI Melles Griot; GSI Group/Excel Technology, Inc.; IPG Photonics, Inc. (Among many others)
The subject employs 1,745 employee(s)
PAYMENTS
	regular
LOCATION
Headquarters
	The company is headquartered at the address listed above
Comments on location:
	The company is incorporated in Nevada due to tax purposes
Branches:
	The company has domestic locations in California, Connecticut, Massachusetts and New York, and at its international locations in China, France, Germany, Japan, and Taiwan.
Business Overview:
	Companies that design, manufacture, market, and support technical instruments, including lab apparatus, process and flow control devices, precise measurement and signal processing tools, and other scientific or technically based analytical or measuring devices.

Shareholders - Manager - Related Companies

Listed at the stock exchange:
	YES
Capital:
	Major Direct Holders Guyett Robert L Phillippy Robert J Cargile Charles F Potashner Kenneth F Patel C Kumar N
Shareholders Parent Company(ies):
	Top Institutional Holders Dimensional Fund Advisors LP Price (T.Rowe) Associates INC Royce & Associates, LLC SouthernSun Asset Management, Inc. Vanguard Group, INC. (THE) BlackRock Fund Advisors Ameriprise Financial, Inc. Van Den Berg Management INC, DBA Century Management BlackRock Institutional Trust Company, N.A. State Street Corporation Top Mutual Fund Holders DFA U.S. Small Cap Value Series Price (T.Rowe) Small-Cap Value Fund Price (T.Rowe) Small Cap Stock Fund Royce Opportunity Fund Riversource Ser Tr- Columbia Recovery and Infrastructure Fd Vanguard Small-Cap Index Fund Ishares S&P Smallcap 600 Index FD Royce Value Trust, INC. Ishares Russell 2000 Index FD Vanguard Total Stock Market Index Fund
Management:
	Robert J. Phillippy, President and CEO Charles F. Cargile, Vice President and CFO Mark J. Nelson, Controller Robert L. Guyett, Director Oleg Khaykin, Director Michael T. O’Neill, Director C. Kumar N. Patel, Director Kenneth F. Potashner, Director Peter J. Simone, Director
Related Companies:
	Newport European Distribution Company Newport Finance Company I, LLC Newport Finance Company II, LLC MRSI Asia Pte. Ltd. Newport Instruments Canada Corporation Newport Spectra-Physics B.V. Newport Spectra-Physics Ltd. Spectra-Physics K.K. (Among others)

Financials - COMMERCIAL TRENDS AND FORECAST

The subject is a public company traded at the NASDAQ stock exchange, under ticker symbol "NEWP". Please find enclosed the financial statements.

Legal Fillings

The company is subject to various legal proceedings and claims that arise in the ordinary course of their business. Although the outcome of these other claims cannot be predicted with certainty, management does not believe that the ultimate resolution of these matters will have a material adverse effect on the financial condition or results of operations.

Rating

Local credit bureau gave a Correct credit rate. The company is in Good Standing. This means that all local and federal taxes were paid on due date.
Final Opinion
	This is a big sized American company, which employs 1,745 persons and has 72 years of experience in the market. The company is publicly traded at the NASDAQ stock exchange, under ticker symbol "NEWP". There were no significant legal filings found against the company or its legal representatives. A credit line may be considered for USD 3,000,000.

SUMMARY

FINANCIAL SUMMARY		DEBT COLLECTIONS AND PAYMENTS
Profitability	GOOD	Public	NO
Indebtedness	CONTROLLED	Payments	REGULAR
Cash	NORMAL

Income Statement

View: Annual Data |

All numbers in thousands

Period Ending		Jan 1, 2011	Jan 2, 2010	Jan 3, 2009
Total Revenue		479,787	366,989	445,336
Cost of Revenue		274,491	224,387	274,542
Gross Profit		205,296	142,602	170,794
	Operating Expenses
	Research Development	39,278	36,948	46,068
	Selling General and Administrative	112,754	112,177	118,518
	Non Recurring	-	360	119,944
	Others	-	-	-
	Total Operating Expenses	-	-	-
Operating Income or Loss		52,722	(11,238)	(111,232)
	Income from Continuing Operations
	Total Other Income/Expenses Net	(542)	(3,926)	3,198
	Earnings Before Interest And Taxes	44,241	(19,373)	(120,179)
	Interest Expense	-	-	6,000
	Income Before Tax	44,241	(19,373)	(120,179)
	Income Tax Expense	-	-	28,545
	Minority Interest	-	-	-
	Net Income From Continuing Ops	44,241	(19,045)	(115,335)
	Non-recurring Events
	Discontinued Operations	-	-	-
	Extraordinary Items	-	-	-
	Effect Of Accounting Changes	-	-	-
	Other Items	-	-	-
Net Income		41,113	(17,406)	(148,724)
Preferred Stock And Other Adjustments		-	-	-
Net Income Applicable To Common Shares		41,113	(17,406)	(148,724)

Currency in USD.

Income Statement

View: | Quarterly Data

All numbers in thousands

Period Ending		Jan 1, 2011	Oct 2, 2010	Jul 3, 2010	Apr 3, 2010
Total Revenue		132,850	125,187	114,600	107,150
Cost of Revenue		74,020	71,452	64,907	64,112
Gross Profit		58,830	53,735	49,693	43,038
	Operating Expenses
	Research Development	10,523	9,894	9,390	9,471
	Selling General and Administrative	29,961	28,387	28,308	26,098
	Non Recurring	-	-	-	-
	Others	-	-	-	-
	Total Operating Expenses	-	-	-	-
Operating Income or Loss		18,258	15,811	11,184	7,469
	Income from Continuing Operations
	Total Other Income/Expenses Net	(88)	357	-	-
	Earnings Before Interest And Taxes	16,587	12,843	9,179	5,632
	Interest Expense	-	-	-	-
	Income Before Tax	16,587	12,843	9,179	5,632
	Income Tax Expense	-	239	900	578
	Minority Interest	-	-	-	-
	Net Income From Continuing Ops	18,304	12,604	8,279	5,054
	Non-recurring Events
	Discontinued Operations	-	-	-	-
	Extraordinary Items	-	-	-	-
	Effect Of Accounting Changes	-	-	-	-
	Other Items	-	-	-	-
Net Income		15,176	12,604	8,279	5,054
Preferred Stock And Other Adjustments		-	-	-	-
Net Income Applicable To Common Shares		15,176	12,604	8,279	5,054

Currency in USD.

Balance Sheet

View: Annual Data |

All numbers in thousands

Period Ending		Jan 1, 2011	Jan 2, 2010	Jan 3, 2009
Assets
Current Assets
	Cash And Cash Equivalents	90,992	87,727	74,874
	Short Term Investments	109,192	54,196	73,546
	Net Receivables	96,975	79,652	95,324
	Inventory	84,508	89,908	98,833
	Other Current Assets	10,362	13,963	10,740
Total Current Assets		392,029	325,446	353,317
Long Term Investments		20,396	12,525	13,550
Property Plant and Equipment		46,160	52,901	60,245
Goodwill		69,322	69,932	68,540
Intangible Assets		24,990	28,166	26,696
Accumulated Amortization		-	-	-
Other Assets		-	-	6,600
Deferred Long Term Asset Charges		3,493	4,437	2,555
Total Assets		556,390	493,407	524,903
Liabilities
Current Liabilities
	Accounts Payable	90,911	77,880	75,721
	Short/Current Long Term Debt	12,468	11,056	14,089
	Other Current Liabilities	-	-	22,937
Total Current Liabilities		103,379	88,936	89,810
Long Term Debt		123,021	122,462	136,698
Other Liabilities		13,279	10,215	10,652
Deferred Long Term Liability Charges		21,252	17,158	22,546
Minority Interest		-	-	-
Negative Goodwill		-	-	-
Total Liabilities		260,931	238,771	259,706
Stockholders' Equity
Misc Stocks Options Warrants		-	-	-
Redeemable Preferred Stock		-	-	-
Preferred Stock		-	-	-
Common Stock		4,307	4,238	4,207
Retained Earnings		(128,641)	(169,754)	(152,348)
Treasury Stock		-	-	-
Capital Surplus		415,757	409,773	407,047
Other Stockholder Equity		4,036	10,379	6,291
Total Stockholder Equity		295,459	254,636	265,197
Net Tangible Assets		201,147	156,538	169,961

Currency in USD.

Balance Sheet

View: | Quarterly Data

All numbers in thousands

Period Ending		Jan 1, 2011	Oct 2, 2010	Jul 3, 2010	Apr 3, 2010
Assets
Current Assets
	Cash And Cash Equivalents	90,992	91,849	81,271	86,672
	Short Term Investments	109,192	73,241	71,144	51,847
	Net Receivables	96,975	92,342	81,911	80,196
	Inventory	84,508	87,191	90,109	88,405
	Other Current Assets	10,362	11,016	13,966	11,588
Total Current Assets		392,029	355,639	338,401	318,708
Long Term Investments		20,396	-	-	-
Property Plant and Equipment		46,160	47,064	47,885	51,212
Goodwill		69,322	69,932	69,932	69,932
Intangible Assets		24,990	25,745	26,501	27,334
Accumulated Amortization		-	-	-	-
Other Assets		-	21,233	13,289	14,930
Deferred Long Term Asset Charges		3,493	3,211	3,528	4,017
Total Assets		556,390	522,824	499,536	486,133
Liabilities
Current Liabilities
	Accounts Payable	90,911	79,975	78,898	71,990
	Short/Current Long Term Debt	12,468	13,081	11,767	8,758
	Other Current Liabilities	-	-	464	-
Total Current Liabilities		103,379	93,056	91,129	80,748
Long Term Debt		123,021	122,075	121,009	123,281
Other Liabilities		13,279	11,311	11,311	11,303
Deferred Long Term Liability Charges		21,252	16,545	15,722	16,244
Minority Interest		-	-	-	-
Negative Goodwill		-	-	-	-
Total Liabilities		260,931	242,987	239,171	231,576
Stockholders' Equity
Misc Stocks Options Warrants		-	-	-	-
Redeemable Preferred Stock		-	-	-	-
Preferred Stock		-	-	-	-
Common Stock		4,307	4,288	4,284	4,280
Retained Earnings		(128,641)	(143,817)	(156,421)	(164,700)
Treasury Stock		-	-	-	-
Capital Surplus		415,757	412,370	410,503	409,289
Other Stockholder Equity		4,036	6,996	1,999	5,688
Total Stockholder Equity		295,459	279,837	260,365	254,557
Net Tangible Assets		201,147	184,160	163,932	157,291

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.22
UK Pound	1	Rs.71.97
Euro	1	Rs.63.23

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.