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4 May 2007


Bookham’s 20% revenue drop increases losses, but product ramp should drive recovery in second-half 2007

For its fiscal third-quarter 2007 (to end-March), Bookham Inc of San Jose, CA, USA, which designs and manufactures optical telecoms components, modules and subsystems, has reported revenue of $45.0m, down 16% from $53.4m a year ago and down 20% on $56.3m last quarter. Revenue from customers other than Nortel was $41.9m, up about 43% on a year ago but essentially flat on the prior quarter.

Under generally accepted accounting principles (GAAP), gross margin has fallen from 15% last quarter to 10%, and net loss has risen from $21.3m last quarter to $24.3m.

Cash, cash equivalents and restricted cash have risen from $51.5m at the end of the last quarter to $61.7m, but $26.9m of this was due to net proceeds from a private placement completed in March.

“For the fourth quarter [to end June], we forecast our revenue will be essentially flat [$43-47m] due mainly to ongoing inventory reduction programs with some of our top customers,” says Dr Peter Bordui, chairman and interim president and CEO. “Nevertheless, we expect sequential improvements in our gross margin [to 12-16%] due to additional savings from our ongoing cost reduction actions,” he adds.

“Our cost reduction plans remain on track to achieve additional quarterly savings of $9-10m from December 2006 levels by the end of the September 2007 quarter,” adds chief financial officer Steve Abely. “We expect these savings, along with expected improvement in our revenue during the second half of 2007 [from several recently introduced products, which continue to ramp], to translate into improving financial results throughout the remainder of the calendar year.”

See related item:

Bookham cut-backs will shrink workforce by 123 staff, mainly at Caswell