Encouraging figures for Bookham: News from Bookham

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Bookham Technology has released US GAAP results for the second quarter and the six months ended 3rd July 2004. (Following the recently announced change in fiscal year end made in connection with the proposed change in corporate domicile, this is also the company's fiscal year end for 2004). Revenues in the second quarter 2004 were GBP 21.3 million ($38.8 million), in line with management expectations, an increase of 11% from the second quarter 2003 in US dollar terms, and down from GBP 22.5 million ($41.3 million) in the first quarter 2004.

The company continued to make progress diversifying its customer base with Huawei accounting for 11% of revenues in the second quarter 2004.

Revenues for Nortel Networks represented 43% of total revenues.

Gross margin, including charges, in the second quarter 2004 was negative 11%, and after charges, negative 10%, in line with management expectations, compared with negative 2% in the first quarter 2004, reflecting continued weakness in the US dollar versus sterling and the effect of the sequential revenue decrease.

Operating cash burn for the second quarter 2004 was GBP 14.0 million ($25.5 million) also in line with management's expectations.

Net loss including charges for the second quarter 2004 was GBP 19.5 million ($35.6 million) compared with GBP 17.5 million ($32.1 million) in the first quarter 2004.

Commenting on the results, Giorgio Anania, Chief Executive Officer, said: "The June quarter was very important for Bookham, as we undertook many new initiatives".

"These initiatives included the continuation of our business relationship with Nortel Networks post the expiration of the revenue guarantee in our supply agreement with them, new design activities with other leading systems vendors, the transition to our low cost China facility, the launch of a number of other cost-reduction initiatives, and our proposed redomicile in the United States".

"I am very pleased with the progress that we have made on all these activities".

"We now expect our revenue with Nortel Networks to return to historical pre-June quarter levels beginning in our September quarter".

"We are pleased with the progress we have made with our China facility and expect to start to qualify components with certain customers for anticipated volume manufacture during the September quarter".

"We believe the cost savings associated with components manufactured in our China facility will be substantial".

"Together with our other cost-reduction moves we anticipate an improvement in margins".

"Finally, subject to shareholder and court approval, we expect our proposed move to the US to become effective during September 2004".

"While we do not underestimate the ongoing challenges faced by the industry, we are encouraged on many fronts".

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News Release from: Bookham Edited by the Electronicstalk Editorial Team on 29 July 2004

Encouraging figures for Bookham

Bookham Technology has released US GAAP results for the second quarter and the six months ended 3rd July 2004.

Note: Readers of the Editor’s free email newsletter will have read this news when it was announced. . It’s free!

News Release from: Bookham
Edited by the Electronicstalk Editorial Team on 29 July 2004