The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially as a result of the factors more specifically referenced below. These statements do not include the potential impact of any mergers or acquisitions that may be completed after September 30, 2000. For the 2001 year the company anticipates overall revenue growth of 40 to 50 percent, driven primarily by increased revenue from the fiber optic communications and semiconductor equipment market segments. Newport's gross margin percentage varies primarily with revenue levels and product mix.
Expenses are dependent in part on the level of revenue.
The higher spending is expected to be driven primarily by increased investment in product development for the fiber optic and photonics division. The tax rate for the fourth quarter of 2000 is expected to be approximately 30 to 31 percent and 33 to 34 percent for the 2001 year. The increase in the anticipated tax rate results primarily from higher interest income, which is taxable at the combined federal and state marginal rates. The higher anticipated capital spending is the result primarily of expenditures related to facilities expansion to support the anticipated growth of the company's products into the fiber optic component and semiconductor equipment markets. Newport Corporation is a global leader in the design, manufacture and marketing of high precision components, instruments and integrated systems to the fiber optic communications, semiconductor equipment, computer peripherals and scientific research markets.