Bookham boosts Q2 revenues

Fiber Optics Weekly Update, August 8, 2003

Bookham Technology, a provider of optical components, modules and subsystems for fiber optic communication networks, announced results for the second quarter and the six months ended June 29, 2003.

Highlights for the second quarter ended June 29, 2003

--Revenues in the second quarter 2003 were 21.0 million [pounds sterling] ($34.9 million), substantially equal to revenues in the first quarter 2003, in line with management expectations.

--Relationships with Nortel Networks and Marconi Communications remained strong, representing 62 percent and 10 percent of sales respectively and Huawei, the leading Chinese telecom equipment company, became a 10 percent customer for the first time in the quarter.

--Gross margin loss improved by 9 percent to (15 percent) in the second quarter 2003 from (24 percent) in the first quarter 2003. Operating expenses, excluding exceptionals, were reduced 14 percent quarter on quarter.

--Cash burn for the second quarter 2003 was 16.9 million [pounds sterling] ($28.1 million), down 5 percent on the first quarter 2003 (17.7 million [pounds sterling]), reflecting significantly improved operating cash flow offset by higher spending relating to restructuring activities.

--Despite flat revenues, the net loss for the second quarter 2003, under UK GAAP, was reduced to 18.1 million [pounds sterling] ($30.1 million). This included exceptional charges of 1.8 million [pounds sterling] and compares with 25.0 million [pounds sterling] in the first quarter 2003, which included exceptional charges of 3.0 million [pounds sterling]. Under US GAAP, the net loss was 17.7 million [pounds sterling] ($29.4 million), which included acquisition related and restructuring charges of 1.8 million [pounds sterling].

--The company is announcing further plans to reduce its overhead structure, which should reduce its cash breakeven point to between 30 [pounds sterling] and 35 million [pounds sterling] of revenue per quarter by the year end 2003.