News

6 March 2009

 

Avanex discloses going concern qualification

Optical communications component and module maker Avanex Corp of Fremont, CA, USA says that its financial statements for the fiscal year ended 30 June 2008 (included in the Form S-4 registration statement of proposed merger partner Bookham Inc of San Jose, CA filed with the Securities and Exchange Commission on 26 February) contain a going concern qualification from its independent registered public accounting firm.

The announcement is being made in compliance with NASDAQ Marketplace Rule 4350(b)(1)(B), which requires separate disclosure of a recent audit opinion that contains a going concern qualification. However, it does not represent any change or amendment to the firm’s 30 June or 31 December 2008 financial statements or to its annual report on Form 10-K or quarterly report on Form 10-Q for those fiscal periods, respectively.

In its fiscal second-quarter 2009 (to end-December 2008), Avanex made a net loss of $16.8m (on revenues down 16% sequentially from $45.3m to $38m) and cash reserves and investments fell by $12.4m to $37.3m. For fiscal Q3/2009 (ending 31 March), the firm expects revenue to fall an even greater 18-37% to just $24-31m. The targeted breakeven run rate is $46-48m in quarterly revenue.

See related items:

Avanex cuts workforce by 5% as revenue falls 16%

Bookham and Avanex agree to merge

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