LONDON Optical components group Bookham Technology plc said its target of breaking even by the end of this year looks increasingly unlikley "with current market condition."
It reported revenues in the first quarter ended March 30 were £21.0 million ($33.0 million), up 47 percent on the fourth quarter 2002, and up 275 percent from the first quarter 2002 at £5.6 million.
The figures included, for the first time, a full quarter of revenues from Nortel Networks Optical Components (NNOC). The fourth quarter 2002 figure included 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 (acquired February 1, 2002). Nortel Networks and Marconi Communications represented 67 percent and 17 percent of revenues, respectively, in the first quarter.
Only three months ago, Bookham was suggesting it would be breaking even by the end this year. But a slow down in orders during the latter part of the first quarter suggests this will be very difficult to achieve.
Net loss for the first quarter 2003, under U.K. accounting practices, was £25.0 million ($39.3 million), which included exceptional charges of £3.0 million. That compares to a net loss of £46.2 million in the fourth quarter 2002 and £17.0 million in the first quarter of 2002. Under U.S. accounting practices, the net loss was £24.6 million ($38.6 million), which included one-time charges of £3.0 million. The bulk of the loss was related to the restructuring of the company's original ASOC optical components business.
Bookham said integration of NNOC and group restructuring is proceeding ahead of schedule. After consolidating the optical amplifier manufacturing, assembly and test operations and chip-on-carrier operations into one site in Paignton, England, closing the U.K. fiber operations in Harlow and restructuring the ASOC engineering and manufacturing efforts in Milton, Abingdon, the previously announced consolidation of its Ottawa wafer fabrication facility into the Caswell facility has started and is expected to be completed in the fourth quarter 2003.
Cash burn for the first quarter 2003 was better than expected at £17.7 million ($27.8 million), down 44 percent on the fourth quarter 2002 (£31.6 million) and down 20 percent on the first quarter 2002 (£22.2 million). The company's cash position remains strong, with £87.7 million ($137.7 million) at the end of the quarter. Over the year, R&D costs decreased by 4 percent following the initial reduction in ASOC-related development.
Bookham said it 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.