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WIKI ANALYSIS
I'm confused. This alclauty sounds pretty good. The average teacher spends just under 2 hours looking at students' results for each test? Or, if we assume that only the 7 struggling students matter, about 15 minutes looking at results per struggling student per test. That doesn't sound so bad to me, given the reality that teachers have lots of other prep work to do.
Business Overview
Newport Corporation was founded in 1969. The company is now a leading worldwide supplier of technology products and solutions for Life and Health Science, Industrial Manufacturing, Semiconductors, Scientific Research, Aerospace and Defense, Photovoltaics, and Microelectronic markets. Newport has acquired extensive knowledge over the 40 years they’ve been around which allows them to continually deliver innovative products in areas such as, photonics instrumentation, vibration isolation, lasers, and many other in depth segments. Newport also has a long history of partnering with original equipment manufacturer customers where they deliver comprehensive solutions in the areas of design, testing, and manufacturing. Newport today is known for their industry leading brands such as New Focus, Oriel Instruments, Corion, Richardson Gratings, and Spectra-Physics.[1]
- omg nancy! thanks so much for the amwsoee pics! it was fun playing model with you! i am so glad we met and i know our friendship is just gonna grow stronger and stronger ok enough of the mushy stuff hehe. thanks again for a fun day!
Non ho davvero utirazzile una buona macchina fotografica video per questo, ma una macchina fotografica digitale con registrazione video, in modo che il laser non sono state prese troppo bene. Si d
Industry Analysis
Companies in the scientific and technical instruments industry have experienced strong revenue growth in recent years. Persistent corporate and state spending and consolidation within the industry were key drivers of growth. In this scientific and technical instrument market, input prices and labor costs are increasing. However, end-users in the semiconductor, networking, and similar industries must compete through non-stop innovation, which increases demand for instrumentation and test gear. Long-term increases in healthcare spending will sustain demand for medical instrumentation, while the expanding defense and homeland security budgets will also be a key determinant of revenues for scientific instrument manufacturers.[2]
Newport’s Markets
Newport sells their products and systems to original equipment manufacturers and end-user customers in markets that are enhanced by the use of photonics technology, including mainly:
- Scientific Research- Newport is one of the world’s leading suppliers of photonics products to scientific researchers. For almost 50 years Newport has worked with the scientific research community to create new technologies and applications. Today they help researchers expand the limit of science in an assortment of research areas including spectroscopy, ultrafast phenomena, terahertz imaging, laser-induced fluorescence, chemical analysis, materials science, light detection and ranging (LIDAR) and nonlinear optics.
- Microelectronics- Newport’s products support many essential applications in the microelectronics market. They are an important supporter of the semiconductor industry by creating smaller chip sizes with useful functionalities that are needed for next-generation consumer technology products, including digital cameras and cell phones. Newport’s products are also crucial for the manufacturing of solar panels with higher efficiency but at a lower cost. There are many other applications that Newport’s products support in the microelectronics market such as solar cell testing, semiconductor lithography, reticle inspection, wafer inspection and metrology, and many others.
- Life and Health Sciences- Photonics technology has become increasingly important in the life and health sciences industry. Newport provides products for diagnostic and analytical instrumentation and bioimaging. Also their products are used in applications including optical coherence tomography, laser microdissection, flow cytometry, multiphoton and confocal microscopy, and many others.
- Aerospace and Defense/Security- As weapons become more technologically advanced it increases investment in the photonics-based technology that can swiftly and noninvasively detect threats. It can also improve intelligence gathering, provide secure communications systems and improve the performance of weapons and countermeasures. Newport’s high precision products are used in the aerospace industry by helping engineers create, assemble, test and standardize equipment. They are also integrated into sensor systems for applications including target recognition and acquisition, LIDAR, range finding, missile guidance and advanced weapons development.
- Industrial Manufacturing- Newport’s photonic products are used in a wide range of industrial manufacturing applications. Some of these applications include micromachining, welding and soldering, illumination, cutting, rapid prototyping, and heat-treating.[3]
Porters 5 forces
The Threat of the Entry of New Competitors
The threat of new entrants is pretty high in the industry. Many of Newport’s markets are characterized by swift technological advances, changing customer needs, evolving industry standards, new product introductions, and sometimes new disruptive technology comes along that shifts current technology. Due to these conditions, many products in Newport’s markets can become obsolete very fast. This gives an opening to prospective new entrants looking to take over some market share. Also certain markets in the industry experience extreme cyclicality in capital spending. This means if Newport fails to introduce new products in a well-timed manner they could miss a period of market growth where other companies can gain an advantage. Entry of new competitors can also come from Newport’s current or potential customers. They may have developed or will develop products that could be competitive with Newport’s products.[4]
Rivalry among existing competitors
Newport competes in several specific markets, against a limited number of companies in each market. The markets that Newport serves are very competitive and distinguished by rapidly changing technology. Newport is up against companies such as Corning Inc. and Agilent Technologies Inc, who have longer operating histories, better name recognition and considerably better technical, financial, manufacturing and marketing resources than they have. Also some of Newport’s competitors have e established relationships with their customers and potential customers in their markets. Along with current competitors Newport believes that new competitors with more resources than they have will try to offer products to their same markets which will hurt the company. Newport also has other competitors that are small and extremely specialized firms that are able to focus on only one portion of the market. [5]
Bargaining Power of Suppliers
Newport currently obtains various materials and components from a limited amount of sources because of the unique component designs and materials uniqueness needed to manufacture their products. In some cases, the number of suppliers available is limited because of patents covering the components or materials. Newport also manufactures some of their components in house and they are not available anywhere else. Many of Newport’s suppliers require long lead times to the deliver the quantities needed to they need to act in a timely manner.[6]
Bargaining Power of Buyers
The bargaining power of buyers is high in this industry. Even though Newport is involved in many markets, most of their sales come from large deals. If they lost the profit from these transactions it would greatly hurt their company. Newport is dedicated to maintaining their relationships with their large buyers so they don’t lose out on a big chunk of earnings.
The Threat of Substitute Products or Services
The threat of substitute products or service is pretty low in this industry scientific and technical industry. This is because many of the products are so complex and unique and not to mention expensive. The only real threat of substitutes is associated with the rapidly changing technology in the industry that opens doors for new and improved products.
Marketing Strategy (4 P's)
Product
Newport provides a large assortment of photonics technology and products designed to increase the capabilities and efficiency of their customers’ precision applications, including:
- Lasers and laser technology, including solid-state, gas and dye lasers, tunable lasers and ultrafast laser systems
- Optical components and subassemblies, including precision optics and opto-mechanical subassemblies, thin-film optical filters, and ruled and holographic diffraction gratings
- Photonics instruments and components, including optical meters, light sources, high-speed detectors and modulators, monochromators and spectroscopy instrumentation
- High-precision positioning and vibration isolation products and systems
Along with Newport’s individual products, they offer proficiency in integrating their products into systems that are designed to meet customers specific application requirements.
Place
Newport’s corporate headquarters is located in Irvine, California. They currently lease this facility until it expires in 2022. Their primary manufacturing operations for each of their divisions can be seen in the table below.
| Division | Primary Facility Locations | Approximate Facility Size |
| Lasers | Santa Clara, California | 139,000 square feet |
| Stahnsdorf, Germany | 12,000 square feet | |
| Irvine, California | 272,000 square feet | |
| Photonics and Precision | Rochester, New York | 58,000 square feet |
| Technologies | Franklin, Massachusetts | 56,000 square feet |
| North Billerica, Massachusetts | 41,000 square feet | |
| Stratford, Connecticut | 32,000 square feet | |
| Beaune-la Rolande, France | 86,000 square feet | |
| Wuxi, China | 64,000 square feet | |
| Brigueuil, France | 44,000 square feet | |
Promotion
Newport markets their products through their domestic and international direct sales organizations. They also market their normal products through their web site and their product catalog called the Newport Resource. The Newport Resources is mailed to about 40,000 existing and potential new customers. It is also accessible worldwide becaasue they publish the catalog in quite a few languages such as English, German, Japanese, and Mandarin. Newport’s website also includes and online catalog that provides customers access to the most recent information about the products. There is detailed product information and extensive technical and applications data. Customers can also see reviews posted by other people which promotes the products by itself.
Price
Newport’s products are particulary expensive considering the complexity of what they offer. They tailor their products to the needs of OEM’s and capital equipment. Since their products are so advanced they are very pricy.
Financial Metrics
Newport performed very well in 2010 and had an excellent financial performance. The company achieved and all time record in sales and orders and their earnings were the highest they have been in a ten years. These sturdy earnings led to great cash generation. Because of their strong performance in 2010, Newport is in a great pposistion for conintued growth and profitability.
- Revenue- Newport’s sales in 2010 totaled $479.8 million which was an increase of 30.7% compared to 2009. Newport’s revenues has grown in each of the last six quarters with the sales in the 4th quarter of 2010 being $132.9 which is an all time high. This large growth in revenue is mainly driven by the significant increase in sales for semiconductor equipment customers. Newport realzixed growth in all of its locations but mainly in Asia and the United States.
- Gross Margin- Due to Newport’s increase in sales in 2010, their gross margin grew from 38.9% in 2009 to 42.8% in 2010 which is almost 400 basis points. Newport’s target gross margin is 45% and they are very close to achieving that goal.
- Earnings per share- In 2010 Newport’s operating income was $52.7 million or 11% of net sales, and their net income was $41.1 million, or $1.09 per diluted share. Newport’s operating income as a percentage of sales and its earnings per diluted share were the highest they have been in 10 years.
A hope for the system is that terhceas can track needs of individual students by looking at how they did on different parts of tests, not just the students' overall performance. Even right after tests are given, the average teacher spends under 10 minutes a week looking at individual student information.
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