Product category:
Optical Transceivers, Transponders and Repeaters
News Release from: Bookham
Edited by the Electronicstalk Editorial
Team on 06 May 2005
Bookham encouraged about growth
prospects
Bookham has announced financial results for the third quarter of fiscal year 2005, ended 2nd April 2005.
Bookham has announced financial results for the third quarter of fiscal year 2005, ended 2nd April 2005 Net revenue in the third quarter of fiscal year 2005 was $49.9 million, a sequential increase of 9% compared with net revenue of $45.8 million in the second quarter of fiscal year 2005
This article was originally published on Electronicstalk on 28 Feb 2008 at 8.00am (UK)
Related stories
Pump module eases DSL replacement
The multimode laser diode allows service providers to extend triple-play service delivery to fibre customers located further away from the central office or the cable head-end.
Modulator tunes lasers up to 40Gbit/s
Reduced size InP MZ platform will allow Bookham to offer 40Gbit/s products in smaller footprints compared with existing 40Gbit/s offerings employing larger optics.
Under generally accepted accounting principles (GAAP), gross margin in the third quarter was 1.1%, an approximately 8.9%age point improvement compared with a gross margin of negative 7.8% in the second quarter.
The sequential improvement in gross margin was primarily the result of a shift to newer, more profitable product lines, product cost reductions, and continued reductions in manufacturing overhead cost.
In addition, gross margin was positively impacted by higher pricing associated with the terms of the amended supply agreement the company entered into with Nortel during the third quarter.
Further reading
Tunable transponder moves to smaller format
The 2.2 x 3in footprint enables network equipment manufacturers to increase port density, placing two SFF transponders on a card where only one LFF would fit.
Bar supports laser systems
The VHB bar has a power output of 80W (up to four times the brightness of a typical 10mm bar) and measures only 3.2mm in width.
Laser diode powers pump block
Fibre-coupled laser system incorporates the latest generation of the Bookham high-power single-emitter laser diodes capable of in excess of 10W operational light output power.
GAAP operating expenses in the third quarter were $129.7 million.
Third quarter GAAP operating expenses compare with GAAP operating expenses of $37.1 million in the second quarter.
GAAP net loss in the third quarter was $129.6 million, or a loss per share of $3.86.
Third quarter GAAP net loss includes charges of $98.1 million for a goodwill write-down relating to the company's acquisitions and $3.8 million attributable to restructuring charges.
Third quarter GAAP net loss compares with a GAAP net loss of $41.1 million, or a loss per share of $1.23 in the second quarter.
Second quarter GAAP net loss included a restructuring charge of $7.9 million attributable to previously announced restructurings.
The goodwill impairment calculation is the company's best estimate and may be subject to further adjustments as the company finalises its valuation assessment.
The company expects to complete its assessment by fiscal year end, July 2, 2005.
Third quarter non-GAAP operating expenses were $27.7 million compared with non-GAAP operating expenses of $29.0 million in the second quarter.
Third quarter non-GAAP net loss was $27.7 million, or $0.82 per share.
This compares with a non-GAAP net loss of $33.0 million, or $0.99 per share in the second quarter.
A reconciliation table of GAAP to non-GAAP results is included in the financial tables section of this release.
Cash, cash equivalents, short-term investments and restricted cash at the end of the third quarter was $42.1 million compared with $77.8 million at the end of the second quarter.
Third quarter EBITDA loss was $119.9 million compared with an EBITDA loss of $32.5 million in the second quarter.
non-GAAP EBITDA, which excludes restructuring charges and the write down of goodwill, was a loss of $17.9 million in the third quarter compared with a non-GAAP EBITDA loss of $24.4 million in the second quarter, representing a decrease of 27%.
The company calculates non-GAAP EBITDA as Net income/loss, excluding the impact of net interest expense and income taxes, adding back the noncash costs of depreciation and amortisation, and excluding restructuring costs, redomicile costs and the write-down of goodwill, as described in the EBITDA reconciliation table attached to this release.
"In the third quarter, we are pleased to have achieved strong revenue growth and positive gross margins", said Dr Giorgio Anania, President and Chief Executive Officer of Bookham.
"Revenues from new customers were particularly strong and Cisco became a 10% customer for the first time".
"Demand for our new products, particularly products addressing the metropolitan market, continued to accelerate".
"Looking forward, the amended supply agreement we signed with Nortel provides order commitments that will contribute to continued revenue growth and gross margin improvement, as well as improved visibility".
"I believe that the Nortel agreement, the continued broadening of our customer base and our own cost reduction efforts, including those associated with the ongoing transfer of manufacturing to Shenzhen, will combine to help our performance for the remainder of the calendar year".
"We are very encouraged about our growth prospects and expected financial performance for the next two quarters", said Dr Anania.
"Demand for our products is expected to remain strong with production at full capacity for certain product lines".
"In addition, we expect to qualify more customers and products in our Shenzhen facility during the fourth quarter, and we remain on track to have the qualification process for most of our products completed by the first quarter of fiscal 2006".
For the fourth quarter of fiscal 2005, ending 2nd July 2005, the company expects revenue will be in the range of approximately $57 million to $60 million, which is an increase of approximately 15 to 20% over the third quarter of fiscal 2005.
In addition, the company expects revenue to continue growing into the first quarter of fiscal 2006, ending 1st October 2005, and will be approximately $60 million to $65 million.
The company believes its ongoing cost reduction efforts, along with increased revenue, due in part to the amended Nortel agreement, will result in further gross margin improvement.
Fourth quarter gross margin is expected to be approximately 14 to 18%.
Gross margin in the first quarter of fiscal 2006 is expected to be approximately 18 to 23%.
Fourth quarter EBITDA, excluding the impact of expected restructuring charges, will be in the range of negative $8 million to negative $12 million.
The company expects EBITDA will improve further in the first quarter of fiscal 2006 and will be in the range of negative $2 million to negative $7 million.
• Bookham: contact details and other news
• Email this article to a colleague
• Register for the free Electronicstalk email newsletter
• Electronicstalk Home Page
Search the Pro-Talk network of sites
