Product category: Optical Transceivers, Transponders and Repeaters
News Release from: Bookham
Edited by the Electronicstalk Editorial Team on 5 February 2007
Bookham plans overhead reductions
Bookham has announced financial results for its second quarter of fiscal 2007, ended 30th December 2006
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Bookham has reported results for its second quarter of fiscal year 2005, ended 1st January 2005
Revenue in the second quarter of fiscal 2007 was US $56.3 million, compared with $56.4 million in the first quarter of fiscal 2007 and $60.7 million in the second quarter of fiscal 2006. Revenue from customers other than Nortel was $41.8 million, unchanged from the prior quarter and approximately 58% higher than the second quarter of fiscal 2006.
Revenue from Nortel in the second quarter was $14.5 million, essentially flat with the first quarter and down from $34.3 million, which included $13.8 million of last-time buy revenue, in the same quarter a year ago.
Under generally accepted accounting principles (GAAP), gross margin in the second quarter was 15%.
This compares with GAAP gross margin of 17% in the first quarter and 27% in the same period a year ago.
GAAP net loss in the second quarter was $21.3 million, or a net loss of $0.31 per share.
This compares with a GAAP net loss of $22.9 million, or $0.38 per share, in the first quarter and a GAAP net loss of $11.9 million, or $0.28 per share, in the second quarter of fiscal 2006.
Further reading
High power DWDM SFP transceiver on show
Bookham is giving a live demonstration of its new, high power DWDM SFP transceiver at OFC/NFOEC 2007
Laser module pumps up the power
The increased output power of the new pump module will enable significant cost reductions in terrestrial legacy systems by reducing the number of pumps required
Tunable laser supports 40Gbit/s DWDM traffic
An integrable Tunable Laser Assembly (iTLA) has been selected by equipment vendors to support 40Gb/s DWDM transmission systems
Tyco opts for pump laser technology
Bookham's 980nm OceanBright pump laser technology has been selected by Tyco Telecommunications (US) for deployment in its undersea cable systems
Second quarter adjusted EBITDA was negative $10.4 million, compared with adjusted EBITDA of negative $7.7 million in the prior quarter and positive $0.7 million in the second quarter of fiscal 2006.
Cash, cash equivalents and restricted cash at the end of the second quarter were $51.5 million, compared with $58.2 million at the end of the first quarter.
'For several quarters we have discussed that our sales to Nortel would decline significantly in the March quarter, due mainly to the completion of the guaranteed purchase agreement at the end of December'.
'Based on current forecasts, we believe revenue from Nortel will account for between 5 and 10% of our total March quarter revenue, compared with 26% in the second quarter, resulting from a higher than previously expected inventory build-up and the completion of the purchase agreement', said Dr Giorgio Anania, President and CEO of Bookham.
'At the same time, we expect modest sequential growth in our non-Nortel revenue in the third quarter because of normal seasonality and some inventory draw-down at selected customers'.
'While non-Nortel revenue continues to grow, the anticipated increase will not make up for the expected decline in Nortel sales in the March quarter'.
'Given these recent developments, we are immediately undertaking an aggressive overhead cost reduction plan, which when fully implemented is designed to save an additional $6 million to $7 million per quarter in the September 2007 quarter'.
'The savings will come mainly from reductions in our workforce, consolidation at our UK semiconductor operation, and shifting more development activities to China', said Dr Anania.
'By taking these additional actions, we believe our adjusted EBITDA quarterly breakeven level can be achieved at a quarterly revenue level of approximately $55 million to $57 million'.
'While we have lowered our March quarter revenue forecast, I believe this will be the low point in calendar 2007 and that revenue will rebound over the remainder of the year'.
'We believe that the continued strong interest and design-in activity we are experiencing for our new products, and an expected rebound in Nortel revenue as the inventory situation is worked through, will drive revenue recovery over the next few quarters', said Dr Anania.
'Taking into account our planned overhead reductions, we expect to achieve adjusted EBITDA breakeven by the end of the September quarter, assuming our revenue goals can be achieved'.
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