Alcatel Optronics and Bookham report results
Alcatel Optronics said that its net loss for the December 2002 quarter narrowed to EUR 115.5 million compared with a loss of EUR 164.6 million for the same period in 2001. For the year ending December 31, 2002, Alcatel Optronics net loss was EUR 418.8 million compared to EUR 144.3 million loss reported a year earlier.
December quarter revenue was down 18.5% sequentially to EUR 10.6 million, while full year 2002 revenue amounted to EUR 84.1 million compared to EUR 470.4 million in 2001.
“2002 has been a difficult and challenging year and the fourth quarter, although marginally better than anticipated, still shows a net sequential recession,” said Alcatel Optronics CEO Jean-Christophe Giroux. “In a still unpredictable market environment, our focus remains to execute on our Strategic Refocus Plan, while sustaining our commercial and technological footprint.”
The company has now divested itself of its US operations and its Canadian activities have been shut down following their transfer to the UK. "We are anticipating revenue for the first quarter 2003 to be in a range of EUR 7-8 million, that reflects both our sustained caution on the immediate future, as well as the deconsolidation effect of our US activities,” said Giroux.
Bookham’s revenues leap ahead
Revenues at Bookham Technology were sharply up in the December 2002 quarter as income from its Nortel acquisition was added to the books. Revenues for the quarter were £14.3 million ($23.0 million), up 88% sequentially on the third quarter of 2002 and up 580% from the fourth quarter of 2001. The fourth quarter 2002 figure includes 7 weeks of revenue from the former Nortel optical components business.
Total revenues for the year ending December 31, 2002, were £34.6 million ($55.7 million), up 58% from £21.9 million in 2001. The net loss for the December quarter 2002 was £19.9 million ($32.0 million), prior to exceptional charges of £26.3 million, compared with a loss of £13.5 million in the third quarter of 2002.
Cash burn for the December quarter 2002 was £31.6 million ($50.9 million), sharply up on the £11.9 million in the previous quarter due to acquisition costs. The company had £105.4 million cash at the end of 2002.
“Following the acquisition of Nortel Networks optical components business, we had three critical factors to achieve: rapid integration, reduction in costs and improved revenue,” said Giorgio Anania, president and CEO. “We are extremely pleased with the way the integration has progressed and this is well ahead of schedule. The cost structure is coming down and there is evidence for a further reduction in the level of revenue required to reach breakeven."
In its statement, the company said that it is seeing good progress with customers, which should lead to specific design-wins during the course of the year. It also plans to shed another 200 staff, mostly at its ASOC research and manufacturing facility in Abingdon, UK, where it currently has 350 employees.
