Product category:
Optical Transceivers, Transponders and Repeaters
News Release from: Bookham
Edited by the Electronicstalk Editorial
Team on 10 November 2005
Bookham announces first-quarter
financial results
Bookham, a provider of optical components, modules and subsystems, has announced financial results for its first quarter of fiscal year 2006, ended 1 October 2005.
Bookham, a provider of optical components, modules and subsystems, has announced financial results for its first quarter of fiscal year 2006, ended 1 October 2005 Net revenue in the first quarter of fiscal year 2006 was $62.6 million
This article was originally published on Electronicstalk on 28 Feb 2008 at 8.00am (UK)
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This does not include approximately $1.5 million of product that was billed and collected in the September quarter and revenue recognition deferred to future quarters.
First quarter net revenue was up 3% from net revenue of $61.0 million in the fourth quarter of fiscal year 2005, and up 44% from net revenue of $43.6 million in the same period a year ago.
Under generally accepted accounting principles (GAAP), gross margin in the first quarter of fiscal 2006 was 23%.
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Excluding stock compensation under SFAS 123R, which the Company adopted in the first quarter of fiscal 2006, gross margin was 24%.
This compares with gross margin of 19% in the prior quarter and negative 5% in the first quarter of fiscal 2005.
GAAP operating expenses in the first quarter were $25.8 million, compared with $47.6 million in the prior quarter and $36.2 million in the same period a year ago.
GAAP net loss in the first quarter was $0.5 million, or a net loss per share of $0.02.
First quarter GAAP net loss includes a one-time tax gain of $11.8 million from recognising tax assets related to the likely future realisation of capital loss carryforwards in connection with the Company's acquisition of Creekside in the first quarter.
First quarter GAAP net loss compares with a GAAP net loss of $39.0 million, or a net loss of $1.16 per share, in the fourth quarter, and a GAAP net loss of $38.3 million, or a net loss of $1.16 per share, in the first quarter of fiscal 2005.
Total stock compensation under SFAS 123R for the first quarter was $2.9 million, which includes a $1.7 million charge for certain performance-based options for which targets were achieved within the first quarter.
Operating expenses under GAAP in the first quarter include restructuring charges of $1.8 million, which were primarily associated with the ongoing heaDCount reductions in the Company's UK operations, and a credit for impairment recovery of $1.3 million related to the sale of land that was previously written down.
Fourth quarter GAAP operating expenses included $16.1 million for impairment of intangibles (goodwill and intellectual property) related to the New Focus acquisition in March 2004, and $4.9 million for restructuring.
The company provides certain supplemental non-GAAP financial measures, including pro-forma net loss excluding noncash stock and option compensation, a non-GAAP measure of income that excludes charges such as impairment and restructuring, and the one-time tax gain, and a measure of Adjusted EBITDA that also excludes these charges to provide readers with the opportunity to use the same financial metrics as management to evaluate the Company's performance.
The Company also believes these non-GAAP measures enhance the comparability and transparency of results for the period.
A reconciliation table of GAAP to non-GAAP measures is included in the financial tables section of this release, and further discussion of these measures is also included later in this release.
Excluding restructuring, impairment, non-cash stock and option compensation, and a one-time tax gain, the Company's first quarter non-GAAP net loss was $8.9 million, or a non-GAAP net loss of $0.26 per share.
This compares with a non-GAAP net loss of $17.8 million, or a non-GAAP net loss of $0.53 per share in the previous quarter.
Please see additional information in the section "non-GAAP Financial Measures" below Adjusted EBITDA was a profit of $0.7 million in the first quarter, the first time the Company has attained this position.
This compares with an Adjusted EBITDA loss of $8.0 million in the previous quarter.
The Company calculates Adjusted EBITDA as net income/loss before net interest expense, income taxes, depreciation and amortisation, and excludes restructuring costs, impairment charges, non-cash compensation costs related to stock options and restricted stock grants, and the one-time tax gain.
Please see additional information in the section 'non-GAAP Financial Measures' below.
Cash, cash equivalents and restricted cash at the end of the first quarter was $43.0 million compared with $32.3 million at the end of the prior quarter.
The first quarter balance reflects the proceeds from the sale of vacant land in the UK and the initial cash balances assumed from the acquisition of Creekside from Deutsche Bank, under a share purchase agreement announced by Bookham on August 16, 2005.
"We are pleased to have met or exceeded all of our financial guidance targets in the first quarter, especially attaining positive Adjusted EBITDA", said Dr Giorgio Anania, President and Chief Executive Officer of Bookham.
"We remain on track to have most of our assembly and test operations in China by the end of the March quarter, and expect to achieve continued cost savings as a result of this move".
"Revenue attributable to our Chinese manufacturing operations increased in the first quarter to $19.7 million, up from $12.4 million in the fourth quarter, and is expected to grow again in the second quarter".
"Since the end of the first quarter, we have further improved our balance sheet by raising $50 million in a public offering of our common stock", said Steve Abely, Chief Financial Officer of Bookham.
"In addition, during the first quarter we raised approximately $27 million through the sale of vacant land in the UK and the acquisition of Creekside from Deutsche Bank".
"By executing these financing events we have strengthened our balance sheet and generated the working capital needed to complete our announced restructuring plans".
"Revenue over the last year has increased approximately 44%, driven by the agreement we signed with Nortel in March and growth in our non-Nortel business", said Dr Anania".
""As we discussed last quarter, we expect revenue from Nortel will decline over the next three quarters as we reach the end of our last-time buys in the current agreement".
"However, we expect to expand business with our non-Nortel customers over the coming quarters and achieve additional improvements in our cost structure through the ongoing move to China".
"As a result, we expect our second quarter Adjusted EBITDA will be approximately breakeven and our gross margin will be in-line with the first quarter".
The following forecasts are based on current expectations.
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