Bookham’s restructuring slashes its cash burn
First quarter 2003 numbers included a full quarter of revenues from Nortel Networks Optical Components (NNOC) acquired by Bookham on November 8, 2002. The fourth quarter 2002 figure includes seven weeks of revenues from NNOC, and the first quarter 2002 figure includes eight weeks of revenues from Marconi’s optical components business (MOC), acquired February 1, 2002.
The company anticipates revenues for the second quarter 2003 to be between £20 million and £23 million and cash burn of £15 million to £18 million.
Much attention has been paid to Bookham’s cash burn as it inches towards profitability. Cash burn for the first quarter 2003 was better than management expectations at £17.7 million ($27.8 million), down 44% on the fourth quarter 2002 (£31.6 million) and down 20% on the first quarter 2002 (£22.2 million). Bookham’s cash level was £87.7 million ($137.7 million) at the end of the quarter.
The net loss for the first quarter 2003 was £25.0 million ($39.3 million), which included exceptional charges of £3.0 million. This compares to a net loss of £46.2 million in the fourth quarter 2002 and £17.0 million in the first quarter of 2002. The loss reduction is largely due to the integration of NNOC and the associated organizational changes, which are now complete, and consolidation of operations, which is also ahead of schedule.
Bookham has consolidated its optical amplifier manufacturing, assembly and test operations and chip-on-carrier operations into one site in Paignton (UK). The fiber operations in Harlow (UK) have closed and the ASOC engineering and manufacturing business in Abingdon (UK) has been restructured. Also, Bookham has commenced the consolidation of its Ottawa wafer fabrication facility into the Caswell (UK) facility, a move that is expected to be completed in the fourth quarter 2003.
