Oxfordshire, UK, April 30, 2003. Bookham Technology announced results for the first quarter ended March 30, 2003. Revenues in the first quarter 2003 were 21.0 million ($33.0 million), up 47% sequentially on the fourth quarter 2002, from £14.3 million, and up 275% from the first quarter 2002 at £5.6 million. The net loss for the first quarter 2003, under UK GAAP, was £25.0 million ($39.3 million), which included exceptional charges of £3.0 million.
First quarter 2003 numbers included a full quarter of revenues from Nortel Networks Optical Components (NNOC). The fourth quarter 2002 figure includes seven weeks of revenues from NNOC (acquired on November 8, 2002), and the first quarter 2002 figure includes eight weeks of revenues from Marconi's optical components business (MOC) (acquired February 1, 2002).
The integration of NNOC has proceeded well and all organizational changes are now complete. Consolidation of operations is also ahead of schedule. Continuous cost reduction initiatives are being identified to reduce further the company's overhead structure.
Commenting on the results, Giorgio Anania, President and Chief Executive Officer, said: "Since the acquisition of NNOC last November, our goal has been to complete the integration of the two companies, continue the cost reduction program and take full advantage of the enhanced product portfolio to increase market share and revenues. We are pleased that the integration of the acquisition was completed ahead of our expectations. Costs have been coming down in line with plans, and as a result, operating ratios have improved and the cash burn is better than we were anticipating. Finally, we have made good progress on design-wins with new customers. Going forward, the company will remain focused on optimizing its cost structure and transforming design-wins into top line revenues."
Progress with the integration of NNOC and group restructuring has proceeded ahead of schedule. After consolidating the optical amplifier manufacturing, assembly and test operations and chip-on-carrier operations into one site in Paignton (UK), closing the fiber operations in Harlow (UK) and restructuring the ASOC engineering and manufacturing efforts in Milton, Abingdon (UK), as part of the announced cost reduction plans, the company has commenced the consolidation of its Ottawa wafer fabrication facility into the Caswell (UK) facility, a move which is expected to be completed in the fourth quarter 2003.
The company anticipates revenues for the second quarter 2003 to be in the range of £20 million to £23 million and cash burn of £15 million to £18 million. Although cost reductions are on target and management of the cash burn is going to plan, the challenge for the company remains achieving revenue growth that, under current market conditions, remains difficult to assess going forward.
More information is available at www.bookham.com .