Highwave Optical Technologies' turnover slumps 64%

19 June 2002 -- Highwave Optical Technologies, Lannion, France, a supplier of DWDM sub-systems announced its financial results for the year ended 31 March.

Jun 19th, 2002

-- reports details of restructuring

19 June 2002 -- Highwave Optical Technologies, Lannion, France, a supplier of DWDM sub-systems announced its financial results for the year ended 31 March.

Total revenues for fiscal 2002 were EUR26m, a decrease of 64% compared to EUR71.9m for the previous year. The net loss for fiscal 2002 was EUR71.7m compared to a profit of EUR3.8m in 2001. Operating loss included a restructuring charge of EUR37.7m. Diluted loss per share for fiscal 2002 was EUR1.16 versus diluted earnings per share of EUR0.23 for fiscal year 2001.

Sales of optical amplifiers during fiscal 2002 accounted for 79% of total revenues, components for 4%, mutiplexers for 5%, specialty optical fibres for 3% and other resales for 9%. Europe, the Middle East and Africa (EMEA) generated 82% of fiscal 2002 revenues, and North America and Asia-Pacific accounted for 13% and 5%, respectively.

Arnaud Chazalon, Highwave's CFO, said, "Highwave was able to reduce its costs significantly during fiscal 2002. In addition to the layoffs, the company closed its Paris, Tregastel and Rennes plants and moved the majority of its operations to its Lannion facility.

"We also sold idle assets and renegotiated all of our contracts with partners. As a result of these activities, general expenses decreased 11% during the year and the effect of these cost control measures will carry forward into fiscal 2003."

"Expenses of EUR37.7m which were related to the restructurings in fiscal 2002, primarily consisted of the write down of fixed assets for EUR12.9m, the write down of inventory for EUR15.5m and costs associated with the layoffs for EUR8.0m."

Eric Delevaque, President of the Highwave Executive Board added, "The most significant challenge we faced in fiscal 2002 was restructuring the Company. We were successful at stabilising our revenues and at the same time were able to diversify our customer base and expand into new markets. As a result, combined revenue in the North American and Asian markets increased from 12% to 61% of total revenue over the last three quarters of fiscal 2002.

"A recently-released RHK research report ranks Highwave number 1 for revenue growth, number 4 for market share growth and the ninth largest worldwide optical components supplier in 2001," Delevaque continued. "Highwave is continuing to gain market share in 2002 and will be well positioned when the market recovers."

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