Product category:
Optical Transceivers, Transponders and Repeaters
News Release from: Bookham
Edited by the Electronicstalk Editorial
Team on 08 November 2006
Cost reduction delivers significant
savings
Bookham has announced financial results for its first quarter of fiscal 2007, ended 30th September 2006.
Bookham has announced financial results for its first quarter of fiscal 2007, ended 30th September 2006 Revenue in the first quarter of fiscal 2007 was $56.4 million, compared with $55.0 million in the fourth quarter of fiscal 2006 and $62.6 million in the first quarter of fiscal 2006
This article was originally published on Electronicstalk on 28 Feb 2008 at 8.00am (UK)
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Under generally accepted accounting principles (GAAP), gross margin in the first quarter was 17%.
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This compares with GAAP gross margin of 9% in the fourth quarter and GAAP gross margin of 23% in the same period a year ago.
GAAP net loss in the first quarter was $22.9 million, or a net loss of $0.38 per share.
Included in first quarter GAAP net loss are restructuring charges of approximately $2.9 million and an impairment charge of $1.9 million for the Paignton facility.
First quarter GAAP net loss compares with a GAAP net loss of $27.0 million, or $0.47 per share, in the fourth quarter and a GAAP net loss of $0.5 million, or $0.02 per share in the first quarter of fiscal 2006.
First quarter Adjusted EBITDA was negative $7.7 million, compared with negative Adjusted EBITDA of $13.4 million in the prior quarter.
Cash, cash equivalents and restricted cash at the end of the first quarter were $58.2 million, compared with $43.3 million at the end of the fourth quarter and $43.0 million at the end of the first quarter of fiscal 2006.
First quarter cash balances include net proceeds of $28.8 million from a private placement of common stock.
During the quarter, the company also announced an agreement to sell its former assembly and test facility in the UK, which the company expects to generate net proceeds of approximately $9 million on the scheduled closing in November 2006.
"The continued growth in our non-Nortel revenue, which was up 15% over the prior quarter, and the positive impact of our cost reduction plans, resulted in better than forecasted first quarter gross margin and Adjusted EBITDA", said Dr Giorgio Anania, President and Chief Executive Officer of Bookham.
"In addition, Cisco revenue increased 47% over the prior quarter and accounted for 13% of total first quarter revenue, and our nontelecom revenue, which includes our industrial laser business, was up 14% sequentially to $11.6 million".
"The current cost reduction plans are progressing as planned and are producing the significant savings we expected", said Dr Anania.
"We initiated our chip-on-carrier line in Shenzhen last month and are on track to complete this transition by the end of the year".
"Also, we are moving other functions to Shenzhen, which will result in additional staff reductions elsewhere as previously announced".
"Based on the success we have achieved to date, I expect our current cost reduction plan, which we began implementing in May this year, will have generated the $5.5 million to $6.5 million of quarterly cost savings by the March 2007 quarter".
"Our balance sheet is much stronger, due in part to the approximately $29 million in net proceeds we raised through the private placement of common stock in September".
"In November, we expect to raise $9 million through the sale of our former assembly and test facility in the UK, further strengthening our financial position", said Dr Anania.
"The telecom spending environment continues to be healthy, especially in areas where Bookham has competitive product advantages".
"In addition, a number of our new products, especially our tuneable lasers, are seeing significant new design-in activity", said Dr Anania.
"I do not anticipate any letup in long-term customer demand and believe that in the second quarter we expect to achieve revenue growth and greater savings in our overhead cost structure through our cost reduction plans".
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