Product category:
Optical Transceivers, Transponders and Repeaters
News Release from: Bookham
Edited by the Electronicstalk Editorial
Team on 07 August 2006
Bookham eliminates long-term debt
Bookham has announced financial results for its fourth quarter and fiscal year 2006, ended 1st July 2006.
Bookham has announced financial results for its fourth quarter and fiscal year 2006, ended 1st July 2006 Revenue in the fourth quarter of fiscal 2006 was $55.0 million, compared with $53.4 million in the third quarter of fiscal 2006 and $61.0 million in the fourth quarter of fiscal 2005
This article was originally published on Electronicstalk on 28 Feb 2008 at 8.00am (UK)
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Revenue from customers other than Nortel increased 25% sequentially to $36.5 million from $29.3 million last quarter.
Revenue from Nortel in the fourth quarter declined as previously forecast to $18.5 million compared with $24.1 million in the prior quarter.
Under generally accepted accounting principles (GAAP), gross margin in the fourth quarter was 9%.
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This compares with gross margin of 11% in the third quarter and gross margin of 19% in the same period a year ago.
GAAP net loss in the fourth quarter was $27.0 million, or a net loss of $0.47 per share.
Included in fourth quarter GAAP net loss are restructuring charges of approximately $5.2 million.
Fourth quarter GAAP net loss compares with a GAAP net loss of $48.0 million, or $0.90 per share in the third quarter and a GAAP net loss of $39.0 million, or $1.16 per share in the fourth quarter of fiscal 2005.
Fourth quarter non-GAAP net loss was $20.9 million, or a net loss of $0.37 per share.
This compares with a non-GAAP net loss of $17.9 million, or $0.34 per share in the third quarter.
Fourth quarter fiscal 2005 non-GAAP net loss was $18.0 million, or $0.54 per share.
Fourth quarter adjusted EBITDA was negative $13.4 million, compared with negative adjusted EBITDA of $11.5 million in the third quarter and negative adjusted EBITDA of $9.5 million in the fourth quarter of fiscal 2005.
Adjusted EBITDA is calculated as net loss excluding the impact of taxes, net interest income/expense, net foreign currency translation gain/loss, depreciation and amortisation, as well as restructuring, impairment, noncash compensation related to stock and options, and certain other one-time charges and credits specifically identified where applicable, including the litigation settlement and early debt extinguishment.
Cash, cash equivalents and restricted cash at the end of the fourth quarter were $43.3 million, compared with $66.9 million at the end of the third quarter and $32.3 million at the end of the fourth quarter of fiscal 2005.
"Our fourth quarter revenue results reflect the ongoing success we are achieving in diversifying our customer mix", said Dr Giorgio Anania, President and Chief Executive Officer of Bookham.
"We increased revenue to telecom customers other than Nortel by approximately 30% sequentially, following a 14% sequential increase in the March quarter".
"In addition, Huawei became a 10% customer in the June quarter while Cisco was close to reaching 10% status".
"The customer growth more than compensated for the expected decline in Nortel revenue during the June quarter.
In addition, our nontelecom revenue, which consists primarily of our New Focus and high-power laser businesses, grew 12% sequentially and accounted for about 19% of total revenue, up from 17% last quarter".
"A significant amount of the overall Bookham growth came from the strong traction we are obtaining with a range of new products we are introducing and which will be continuing to ramp in the first and second quarters of fiscal 2007".
"We are making good progress on the cost reduction plans we announced in May".
"Our lasers prototype line with associated engineering support will be transferring to our Shenzhen, China facility in the August to October timeframe, and our chip-on-carrier line will be starting up in Shenzhen in September with the move to be completed before year-end".
"We are also in the process of transferring a certain number of development, manufacturing support and administrative functions to Shenzhen to continue driving down our overhead cost structure".
"This will result in significant reductions in Western-world staff, especially in our Paignton, UK site, which will occur between the middle of August and November of this year", said Dr Anania.
"We initially expected these moves would result in quarterly cost savings of between $5 million and $6 million per quarter.
We now expect cost savings of about $4 million per quarter in the December quarter with an additional $1.5 million to $2.5 million achieved by the March 2007 quarter", added Dr Anania.
"In a separate press release issued today, we announced the establishment of a $25 million line of credit", said Dr Anania.
"This available credit facility provides us with additional flexibility to finance our ongoing restructuring and cost savings programmes".
Net revenue for fiscal 2006 was $231.6 million, compared with $200.3 million in fiscal 2005.
GAAP net loss for fiscal 2006 was $87.5 million, or a net loss of $1.87 per share.
This compares with a GAAP net loss of $248.0 million, or a net loss of $7.43 per share in fiscal 2005.
"We achieved 16% revenue growth in fiscal 2006 and significantly improved our overall financial structure with the elimination of our long-term debt", said Dr Anania.
"On the operations front, we extended our supply agreement with Nortel through calendar 2006 and completed the move of our assembly and test manufacturing to Shenzhen, which is already delivering better performance and substantial cost savings".
"In addition, we introduced several new products, including wideband tunable laser products, next generation high power 980 pumps, new optical amplifiers and extended temperature XFPs and SFP DWDM transceiver products, all of which, we believe, will be key to our revenue growth in fiscal 2007".
"The market outlook for telecom optical components remains strong and as a key player in the telecom optical components space we are experiencing the benefits from this positive momentum", said Dr Anania.
"We are seeing solid demand for our new products and believe this will translate into additional growth for these products over the next several quarters".
For the first quarter of fiscal 2007, ending 30th September 2006, the company expects: revenue will be in the range of $55 million to $58 million; gross margin will be in the range of 10% to 15%; and adjusted EBITDA will be in the range of negative $8 million to negative $12 million.
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