Bookham Technology plc (LSE: BHM, Nasdaq: BKHM), a supplier of silicon integrated optical components for fibre-optic communication networks, announced results for the first quarter ended April 1, 2001.
Revenues were £11.6 million ($16.5 million) compared to £11.5 million ($16.3 million) in the previous quarter and up 362 percent from the comparable quarter in 2000.
During the quarter gross margins from on-going operations continued to improve. However, a charge of £0.6 million ($0.9 million) was taken as a provision for excess stock resulting from the lack of short-term visibility in sales. In addition, a charge of £1 million ($1.4 million) was made as a result of the company's previously announced voluntary workforce reduction program.
Gross margin, before the above adjustments, was near breakeven at approximately: 1 percent as expected.
Sales of the company's Dense Wavelength Division Multiplexing (DWDM) products increased from 33 percent to 38 percent of total revenues, with access products representing the remaining 62 percent.
The company's largest customer this quarter was Nortel, representing 36 percent of sales. Other major customers were Marconi Communications, at 27 percent of sales, and Fujitsu Telecommunications Europe, at 14 percent of sales, both increasing from the previous quarter and demonstrating further diversification of the company's customer base.
Net loss under UK GAAP was £11.7 million ($16.6 million) compared to £8.5 million ($12.1 million) in the previous quarter, which included a £3 million ($4.3 million) credit relating to National Insurance charges on share options.
Under US GAAP, net loss was £12.4 million ($17.6 million) compared to £11.5 million ($16.3 million) in the previous quarter.
Cash balances at the end of the quarter amounted to £238 million ($338 million) after capital investment of £23.3 million ($33.1 million).
Revenues from the company's four DWDM products contributed to sales as the company shipped components to a wider set of customers. The company's newest product, the Mux-VOA, introduced in the last quarter, is generating commercial interest. The ASOC platform continues to demonstrate capabilities for integration, providing an economical solution for applications in the DWDM metropolitan market area. At the Optical Fibre Conference (OFC) in March, the company demonstrated an optical metro solution on a single silicon chip -- an ASOC Optical Add/Drop Multiplexer.
As a result of a reorganization and voluntary workforce reduction program, total personnel decreased by 17 percent, from 978 to 812, during the quarter. The company has continued to strengthen its management and operational team, complemented by focused research and development.
As previously announced, the company acquired Measurement Microsystems in Canada, as well as all assets and the lease on its North American Headquarters facility in Columbia, Maryland. These acquisitions closed in January and February 2001, respectively. The company has integrated product development with Measurement Microsystems and expects these developments to result in commercial products in 2002.
The optical equipment market has become less predictable, leading the company and its customers to institute a very cost-conscious approach. The market slowdown across the company's customer base is affecting decision-making processes and, as a result, the company is experiencing a reduction in demand and order deferrals. Over time, the company believes that this pressure may cause the optical system vendors to consider more cost-effective integrated component solutions, which play to the strengths of its ASOC technology.