Bookham Bruised by Q1
But no! With a swing and a miss yesterday, Bookham missed analysts' first-quarter targets and announced a lower-than-expected forecast for the second quarter.
That could make for a brutal trading day today. Bookham shares fell 45 cents (12.4%) to $3.18 in after-hours trading last night. By contrast, Avanex and JDSU enjoyed gains of more than 10 percent after their earnings calls last week. (See Infinera Boosts Avanex and JDSU Lands in the Black.)
For its first quarter, which ended Sept. 30, Bookham reported losses of $22.9 million, or 38 cents per share, on revenues of $56.4 million -- compared with losses of $27 million, or 47 cents per share, on revenues of $55 million the previous quarter. (See Bookham Reports Q1.)
For its first quarter a year ago, Bookham reported losses of $500,000, 2 cents per share, on revenues of $62.6 million.
The numbers weren't far from analysts' expectations. Pro forma net loss of 26 cents per share met the estimate tallied by Reuters Research but was 1 cent short of the 25 cents per share reported by Thomson First Call .
Where Bookham really fell short was in its second-quarter forecast, for revenues of $56 million to $59 million. Analysts were looking for $60.5 million, according to Reuters.
Bookham's non-Nortel business -- about 74 percent of revenues last quarter -- is partly to blame. "In the December quarter, we could see a pause in the growth rate of non-Nortel customers," with growth kicking back in with the March quarter, Anania said.
The pause is based in part on some lowered forecasts from certain OEMs, Anania said. But it's also the law of averages. "If you get 62 percent revenue growth over three quarters, it's normal to expect somewhat of a breather," Anania said, referring to the recent growth in non-Nortel sales.
Cisco Systems Inc. (Nasdaq: CSCO) accounted for 13 percent of first-quarter revenues, due mostly to a design win for a Bookham amplifier, Anania said.
That's a bit of a comeback in the Bookham-Cisco relationship. Bookham had previously sold into a different Cisco win. One analyst suggested this was the ONS 15454 optical system, which Anania didn't quite confirm. ("You're very well informed," he told the analyst.) But those revenues dropped away. It might be just coincidence, but that seems to jibe with the ongoing theory that Cisco is lowering its emphasis on optical platforms, including the 15454. (See Optical: Cisco's Odd Man Out?.)
Like Avanex, Bookham is counting on some new products to cultivate some revenue growth and shore up margins. New products Bookham began to ramp up during its first quarter include an amplifier subsystem, an optical amplifier, an electro-absorption modulated laser, a new transmitter module, and the company's first tunable laser, Anania said.
— Craig Matsumoto, Senior Editor, Light Reading