Financial news from Cree, Endwave and Bookham
Cree has reported record revenue for its fiscal year 2003 of $229.8 millon an increase of 48%, compared to revenue of $155.4 million for fiscal year 2002. Net income for 2003 was $34.9 million or $0.46 per share, compared to a net loss of $101.7 million in 2002.
Cree’s fourth quarter ending June 30 continued its recent run of record breaking quarters with the company reporting revenue of $64 million, a $3.9 million rise on the third-quarter and a 69% increase over the year-ago quarter. Net income for the quarter was $11.4 million or $0.15 per share, compared to the loss of $22.5 million or $0.31 per share, reported in the year-ago quarter.
Endwave achieves operating profit, moves more production offshore
Endwave has reported revenues of $8.5 million for its second fiscal quarter ending June 30, compared with revenues of $7.7 million for the first quarter. Net loss for the quarter was $1.9 million, or $0.21 per share, compared with net loss for the second quarter of 2002 of $6.1 million.
Pro forma net loss for the second quarter was $1.8 million, compared with a pro forma net loss in the year-ago quarter of $6.4 million. The company achieved an operating profit of $380,000.
"The higher revenues, combined with our ongoing operating improvements, enabled us to exceed our major financial goals of generating cash from operations and significantly improving our gross margin for the quarter,” said Ed Keible, CEO and president of Endwave. “Although our revenue level for the second half of 2003 is anticipated to be similar to our first half revenues, we will continue to make improvements though out our operations in order to reach our goals of ongoing positive operating cash flow and bottom line profitability."
Endwave also stated that as part of its target to reach profitability by the end of the fourth quarter of 2003, the company has notified employees that it would effect a reduction in force of approximately 20%, to be completed by the end of the third quarter. The job losses are expected to reduce the company s 2004 operating expenses by $2.3 million. Additionally, the company will accelerate its plan to transition other high-volume manufacturing programs offshore, resulting in approximately 70% of its production occurring offshore by the end of the fourth quarter of 2003.
Bookham sees a shift to products for metro networks
Bookham Technology has reported second quarter revenues of £21 million ($34 million), about equal to its first quarter revenue. Nortel Networks and Marconi Communications represented 60% and 13% of sales respectively for the first half 2003.
The net loss for the quarter was £18.1 million and the operating loss was £3.2 million ($5.3 million), down from £5.0 million in the first quarter 2003 and down from £3.9 million in the second quarter 2002. This improvement was mainly the result of reductions in fixed manufacturing overheads.
The company’s strenuous efforts to cut-costs and reduce cash-burn are continuing, with the closure of it’s Ottawa fab on track for the third quarter and another 180 job losses, which were announced with the results. In line with Bookham’s decision to move away from its ASOC platform, the company will close its wafer fab in Milton, UK.
In common with other optical component manufacturers, Bookham has seen a shift in demand towards products for the metro area, which accounted for approximately 45% of the revenues the second quarter.
Additionally, the company continues to develop applications of its non-telecom opportunities and believes it has strong growth prospects in this area, particularly in the industrial, military and aerospace areas and continues to support its GaAs MMIC business based in Caswell. Bookham anticipates that this non-telecom business could represent 10-20% of total revenues in 2004.
