Product category:
Optical Transceivers, Transponders and Repeaters
News Release from: Bookham
Edited by the Electronicstalk Editorial
Team on 06 February 2006
Diversification helps Bookham survive
Bookham has announced financial results for its second quarter of fiscal year 2006, ended 31st December 2005.
Bookham has announced financial results for its second quarter of fiscal year 2006, ended 31st December 2005 Net revenue in the second quarter of fiscal 2006 was $60.7 million
This article was originally published on Electronicstalk on 28 Feb 2008 at 8.00am (UK)
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This compares with net revenue of $62.6 million in the first quarter of fiscal 2006 and with net revenue of $45.8 million in the second quarter of fiscal 2005.
Under generally accepted accounting principles (GAAP), gross margin in the second quarter was 27%.
This compares with gross margin of 23% in the first quarter and negative 8% in the same period a year ago.
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GAAP net loss in the second quarter was $11.9 million, or a net loss of $0.28 per share.
Second quarter GAAP net loss compares with a first quarter GAAP net loss of $0.5 million, or a net loss of $0.02 per share.
First quarter GAAP net loss included a one-time tax gain of $11.8 million from recognising tax assets related to the company's acquisition of Creekside.
GAAP net loss in the second quarter of fiscal 2005 was of $41.1 million, or a net loss of $1.23 per share.
Second quarter non-GAAP net loss, which excludes restructuring charges of $1.8 million and noncash stock and option compensation of $1.9 million, was $8.3 million, or a non-GAAP net loss of $0.19 per share.
Second quarter non-GAAP net loss compares with a first quarter non-GAAP net loss of $8.9 million, or a non-GAAP net loss of $0.26 per share.
non-GAAP net loss in the second quarter of fiscal 2005 was $33.0 million, or a non-GAAP net loss of $0.99 per share.
Second quarter adjusted EBITDA was a profit of $0.7 million.
This compares with adjusted EBITDA of $0.7 million in the first quarter and an adjusted EBITDA loss of $26.2 million in the second quarter of fiscal 2005.
The company calculates adjusted EBITDA as net income/loss before net interest expense, income taxes, depreciation and amortisation, and excludes restructuring costs, impairment charges, noncash compensation costs related to stock options and restricted stock grants, and the one-time tax gain.
Cash, cash equivalents and restricted cash at the end of the second quarter was $81.3 million compared with $43.0 million at the end of the first quarter.
The second quarter cash balance includes $49.3 million in net proceeds, excluding fees and expenses, from the company's public offering of common stock completed on 12th October 2005.
"In the past four months we executed multiple financing actions that have significantly improved our financial position", said Dr Giorgio Anania, President and Chief Executive Officer of Bookham: "In September and October 2005, we raised $77 million through a combination of asset sales and a public equity offering".
"Last month, we entered into a series of transactions that eliminated our long-term debt".
"Our financial results in the second quarter were highlighted by our GAAP gross margin reaching 27%, a four-percentage-point increase over the previous quarter, and a 35-percentage-point increase over the year-ago level".
"In addition, we achieved our second consecutive quarter of positive adjusted EBITDA".
"On the operations front, we continued to make significant progress moving our assembly and test operations to Shenzhen, China", said Dr Anania.
"Revenue from Shenzhen in the second quarter was $27.0 million, a 37% increase over the $19.7 million we generated in the first quarter".
"Revenue from Shenzhen is expected to increase over the next two quarters as we complete the move of our assembly and test operations by the end of fiscal 2006".
"Equally important is that we believe that the operational risk associated with the transfer of product to China is fully behind us and the savings are beginning to come through more strongly than initially forecasted".
"As we have noted over the past few quarters, under the terms of the original supply agreement with Nortel, revenue from Nortel will decline over the remainder of fiscal 2006 as we complete the sales of products we have decided to discontinue", said Dr Anania.
"We believe that our efforts to diversify our customer base and expand revenue with other customers will continue to progress throughout the remainder of fiscal 2006".
"In addition, by increasing our revenue to other customers and finishing the move to Shenzhen, we expect to substantially offset the impact that lower revenue from Nortel will have on our gross margin and adjusted EBITDA results in the next few quarters".
For the third quarter of fiscal 2006, ending 1st April 2006, the company expects revenue will be in the range of $51 million to $54 million.
The company expects third quarter gross margin will be in the range of 23% to 27%.
The company expects adjusted EBITDA in the third quarter will be in the range of negative $3 million to positive $1 million.
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