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2 May 2003 Oxford, UK--Bookham Technology, a provider of optical components, modules and subsystems for fibre-optic communication networks, has announced results for Q1 2003.
Highlights
Revenues in the first quarter 2003 were GBP21.0 million (USD33.0 million), up 47% sequentially on the fourth quarter 2002, from GBP14.3 million, and up 275% from Q1 2002 at GBP5.6 million. Q1 2003 numbers included a full quarter of revenues from Nortel Networks Optical Components (NNOC).
The Q4 2002 figure includes seven weeks of revenues from NNOC (acquired on November 8, 2002), and the first quarter 2002 figure includes eight weeks of revenues from Marconi's optical components business, acquired February 1, 2002.
Cash burn for Q1 2003 was better than management expectations at GBP17.7 million (USD27.8 million), down 44% on Q4 2002 (GBP31.6 million) and down 20% on the first quarter 2002 (GBP22.2 million). The company's cash position remains strong, with GBP87.7 million (USD137.7 million) at the end of the quarter.
The net loss for Q1 2003, under UK GAAP, was GBP25.0 million (USD39.3 million), which included exceptional charges of GBP3.0 million. This compares to a net loss of GBP46.2 million in Q42002 and GBP17.0 million in the first quarter of 2002. Under US GAAP, the net loss was GBP24.6 million (USD38.6 million), which included one-time charges of GBP3.0 million.
The integration of NNOC has proceeded well and all organisational changes are now complete. Consolidation of operations is also ahead of schedule. Continuous cost reduction initiatives are being identified to reduce further the company's overhead structure.
Giorgio Anania, Bookham's President and CEO, said: "Since the acquisition of NNOC last November, our goal has been to complete the integration of the two companies, continue the cost reduction programme and take full advantage of the enhanced product portfolio to increase market share and revenues.
"We are pleased that the integration of the acquisition was completed ahead of our expectations. Costs have been coming down in line with plans, and as a result, operating ratios have improved and the cash burn is better than we were anticipating. Finally, we have made good progress on design-wins with new customers. Going forward, the company will remain focused on optimising its cost structure and transforming design-wins into top line revenues."
Operating review
Progress with the integration of NNOC and group restructuring has proceeded ahead of schedule.
After consolidating the optical amplifier manufacturing, assembly and test operations and chip-on-carrier operations into one site in Paignton (UK), closing the fibre operations in Harlow (UK) and restructuring the ASOC engineering and manufacturing efforts in Milton, Abingdon (UK) the company has commenced the consolidation of its Ottawa wafer fabrication facility into the Caswell (UK) facility, which is expected to be completed in Q4 2003.
Outlook
The company anticipates revenues for the second quarter 2003 to be in the range of GBP20-23 million and cash burn of GBP15-18 million.
Although cost reductions are on target and management of the cash burn is going to plan, the challenge for the company remains achieving revenue growth, which with current market conditions, remains difficult to assess going forward.
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