Bookham reports increased sales

5 November 2002 -- UK integrated optical component and module manufacturer Bookham Technology plc has reported Q3/2002 sales of GBP7.6m (up 6% on Q2 and 217% on a year ago).

5 November 2002 -- UK integrated optical component and module manufacturer Bookham Technology plc has reported Q3/2002 sales of GBP7.6m (up 6% on Q2 and 217% on a year ago).

Compared to the previous quarter sales were up 17% to Marconi and down 6% to non-Marconi customers. Marconi, Nortel Networks and BAE Systems represented 56%, 11% and 11% of sales, respectively. DWDM products accounted for 60% and active products for 40% of revenue.

Net loss, excluding restructuring charges, was cut from GBP15.3m in Q2/2002 to GBP13.5m. Gross loss was GBP3.8m, up from GBP1.9m a year ago. This was due to a higher fixed cost manufacturing base, mainly from the acquisition of Marconi Optical Components in Q1/2001.

In July Bookham said it was closing two facilities in Maryland, US and Swindon, UK and focusing production at its Milton, Abingdon and Caswell sites at a restructuring charge of GBP8.6m, saving GBP13.0m annually.

Cost reduction has contributed to the 15% quarterly reduction in operating expenses from GBP13.2m in Q2 to GBP11.2m. Cash burn was GBP11.8m (down 14% on Q2 and 23% on a year ago). Bookham still has GBP137.1m in cash, compared with GBP184.8m at end-2001.

On 7 October, Bookham said it had entered into an agreement to purchase the optical transmitter and receiver business and the optical amplifier business of Nortel Networks. Nortel Networks Ltd also agreed to enter into a USD120m (GBP76.5m) supply agreement. "The proposed acquisition of Nortel Network's optical components business will put us in a key leadership position as an independent, broad-line supplier of optical components to the leading optical systems companies," says president and CEO Giorgio Anania.

Bookham expects revenues to grow by at least 50% from Q3 to Q4 and to approximately double from Q4 to Q1/2003. In the near term, cash burn will increase, particularly in Q4/2002, but should drop back to current levels by mid-2003.

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