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News

3 August 2007

 

Inventory reduction programs continue to “hurt” Bookham

For its fiscal fourth-quarter 2007, Bookham Inc of San Jose, CA, USA, which designs and manufactures optical telecoms components, modules and subsystems, has reported revenue of $45.1m, up slightly on the $45.0m achieved in Q3/2007, but down on the $55.0m reported for Q4/2006. Sales to Nortel and Huawei each accounted for greater than 10% of Q4/2007 revenue.

The company has also announced its fiscal 2007 results, reporting net revenue of $202.8m, as compared with the $231.6m achieved in fiscal 2006. GAAP net loss for fiscal 2007 was $82.2m, compared with a GAAP net loss of $87.5m for fiscal 2006.

Under generally accepted accounting principles (GAAP), Q4’s gross margin was 16%, compared with 10% in Q3/2007 and 9% for Q4/2006. Fourth -quarter GAAP net loss was $13.6m, compared with a GAAP net loss of $24.3m for Q3/2007 and a GAAP net loss of $27.0m for Q4/2006.

Q4/2007 non-GAAP net loss (excluding non-cash stock and option-based compensation of $1.2m) was $10.8m, compared with a non-GAAP net loss of $18.7m in Q3/2007 and a non-GAAP net loss of $20.9m in Q4/2006.

Adjusted EBITDA in Q4/2007 was negative $6.0m, compared with negative $14.1m in Q3/2007 and negative $13.4m in Q4/2006.

"In the fourth quarter, we made progress in lowering our overall cost structure, and as a result we have shown improvement in both our gross margin and Adjusted EBITDA. On the revenue side, we saw growth in several legacy products, particularly fixed wavelength 10Gb/s transmitters and receivers.  Revenue from our tunable laser products was also up 60% from the previous quarter and is continuing to increase,” said Peter Bordui, chairman of the board and interim president and CEO of Bookham.  “In product development, we made progress in getting our small form factor tunable transponder and 980nm submarine pump laser ready for market.  We expect both products will positively impact revenue in the second half of the calendar year.”

For Q1/2008, Bookham forecasts revenue in the range of $50m to $54m, with a non-GAAP gross margin of between 18% and 22% and adjusted EBITDA of negative $3m to negative $7m.

Bordui added: "We continue to execute on our cost reduction plans, which should further improve our overhead structure.  At the same time, we are moving beyond the inventory reduction programs at several of our key customers that hurt our revenue in the first half of this calendar year. Through sales of both new and legacy products, we’re currently expecting increased revenue from our three largest customers along with continued penetration into several other tier-one accounts.”

See related items:

Bookham appoints new president & CEO; Bordui remains chairman

Bookham’s 20% revenue drop increases losses, but product ramp should drive recovery in second-half 2007

Bookham cut-backs will shrink workforce by 123 staff, mainly at Caswell

Anania exits Bookham

Visit: http://www.bookham.com