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Optical components

Bookham Slips Again

Another round of punishment hit Bookham Inc. (Nasdaq: BKHM; London: BHM) stock this morning as the company missed earnings estimates by a wide margin.

For its fourth quarter, which ended July 1, Bookham reported net losses of $27 million, 47 cents per share, on revenues of $55 million, compared with losses of $48 million, 90 cents per share, on revenues of $53.4 million the previous quarter.

For its fourth quarter a year ago, Bookham reported losses of $39 million, $1.16 per share, on revenues of $61 million.

Fourth-quarter non-GAAP losses of 37 cents per share were substantially worse than the analysts' estimate of 29 cents, as tallied by Thomson Financial . By midday, Bookham stock was trading down 34 cents (12.7 percent) at $2.33.

Most tech stocks are down since March, and optical stocks have been hit particularly hard after getting hyped early in the year; Bookham peaked at $10.36 during the spring, for example. But on a conference call with analysts this morning, Bookham officials stressed that they're still seeing the increased demand that was pumping up optical hopes. (See Bookham Basks in 'Cramer Effect' and Smiles Abound at OFC/NFOEC.)

"The optical components market continues to strengthen," Anania said on the call. "We see a lot of demand for new products -- particularly tunable lasers, but also new amps, pumps, and various actives and subsystems."

Bookham continues to walk a thin line when it comes to cash. The company's cash and equivalents totaled $43.3 million ending the fourth quarter, down from $66.9 million the previous quarter.

But the company still has some financial moves up its sleeve. This morning, Bookham announced a $25 million credit facility with Wells Fargo Foothill. (See Bookham Gets Credit.)

Bookham intends to get "back to operating cash-flow break-even over the next few quarters," CFO Steve Abely said on the call. Bookham has made some creative maneuvers during the past year to get there, including land sales and odd but cash-raising deals. (See Bookham Sells Land , Bookham Refinances, and Bookham Bags $11.9M.)

Bookham is continuing to balance its customer base, lowering its dependence on lead customer Nortel Networks Ltd. . Nortel accounted for 34 percent of sales in the fourth quarter, down from 45 percent the previous quarter. Huawei Technologies Co. Ltd. represented more than 10 percent of sales, and Cisco Systems Inc. (Nasdaq: CSCO) was "just short" of the 10 percent mark, Anania said.

For its first quarter, which ends in September, Bookham is predicting revenues of $55 million to $58 million, right on the money with analysts' consensus forecast of $56.6 million.

— Craig Matsumoto, Senior Editor, Light Reading

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whyiswhy 12/5/2012 | 3:46:01 AM
re: Bookham Slips Again Did this IPO class action ever settle, or are they still fighting?

"Stockholders who purchased Bookham Technology PLC (Nasdaq: BKHM) common stock between April 11 and December 6, 2000 have filed several class actions against the company, certain of its officers and directors, and certain of the underwriters (Goldman, Sachs & Co.; and FleetBoston Robertson Stephens) of Bookham Technology's initial public offering (IPO) on April 11, 2000.The actions claim that the defendants violated federal securities laws by filing a misleading prospectus in connection with the IPO. The stockholders seek to recover compensatory damages for the loss of value of their stock.

The actions allege that the prospectus was materially false and misleading because it failed to disclose, among other things, that (1) the underwriters had solicited and received excessive and undisclosed commissions from certain investors in exchange for which the underwriters allocated to those investors material portions of the restricted number of shares issued in connection with the IPO, and (2) the underwriters had entered into agreements with customers whereby the underwriters agreed to allocate shares to those customers in the IPO in exchange for which the customers agreed to purchase additional shares in the aftermarket at pre-determined prices."

-Why
litton_devices 12/5/2012 | 3:46:00 AM
re: Bookham Slips Again From Yahoo Message Board today:
http://messages.finance.yahoo....

Board gave CEO a very large sum as an award to recognize that CEO raised the value of BKHM, not many months after that, BKHM went down and even today is lower than ever. OUR 401K are gone again...
The CEO must return the award to the company BECAUSE HE DID NOT DESERVE ANY PENNY OF IT... I wish there could be an investigation of that payment... Whoever has any details on that should come forward and inform the SEC.... If I had the details I would send them to the SEC....That event is saying that this CEO with his exceptional education from Princeton University DID NOT FORECAST THAT THE VALUE WOULD LOWER AGAIN IMMEDIATELY AFTER HE GOT HIS PAYMENT.... HOW COME THAT CEO WAS UNABLE OF SEING THAT COMING???
Give us a break....
DZED 12/5/2012 | 3:45:59 AM
re: Bookham Slips Again No surprises really, the whole Cramer bubble was an engineered scam and Bookham itself was a scam from the start.

Really Bookham was an exercise in fleecing the stockmarket and gullible investors. Business decisions were taken to for the short term financial gain of the execs rather than in the long term interests of the company or shareholders.

Now the end really can't be far off, ~45m in cash, quarterly burn ~30m.

Not sure what happened over the lawsuit, I think it was paid out by insurance. So guilty as charged? If this had happened in the US presumably someone would be looking at a long stretch inside.

I see Mehdi Asghari and Andrew Rickman have bobbed up again at Kotura. It would be interesting to know how much Bookham sold the ASOC patents for, and how much Kotura values them at.
Nice to have the stock market fund your hobby not once but twice, and doesn't say much for the commercial competence of Inania and Abely.

ASOC V anyone?
deauxfaux 12/5/2012 | 3:45:55 AM
re: Bookham Slips Again C'mon, the word "slip" implies a small misstep countered by an adjustment which prevents someone(or something) from falling.

BKHM is like a drunk skating with ROLLER skates on an ice rink....they can't stabilize themselves from any direction. This tragicomedy has been going on for 15 years without any sort of improvement. If I am astonished at anything, it is merely that any rational observer could be astonished at BKHM's peformance. It is completely consistent.

Since Rickman became Sir-Andy I suppose that someone thinks his judgment has improved. It is indeed true that he has fully infiltrated Kotura with his band of idiots. Can there be any doubt about the results of his involvement?

Ironically, the guys with the working, shipping integrated Si products are just down the street from Kotura.
whyiswhy 12/5/2012 | 3:45:55 AM
re: Bookham Slips Again Add to the list: AVNX, at least. Amazing number of optical scams still operating, barely. Not to excuse Enron and the like. Multiple Billions robbed. Nobody in jail. How many of these guys are multiple offenders?

Crack addict with $40 worth of rocks beaten and locked up for life the third time.

Best government money can buy.

-Why
Pete Baldwin 12/5/2012 | 3:45:51 AM
re: Bookham Slips Again Here's an interesting theory: Jeff Osborne of CIBC muses that Bookham might be an acquisition target in 2007 or 2008, once they get stabilized.

OK, yes, I know -- many of you don't expect Bookham to stabilize. Humor me for a sec here.

Suppose Bookham cauterizes its wounds and becomes break-even, at least. It's got tunable lasers now and some other interesting next-gen products in the works. Is its product portfolio attractive enough to spark an acquisition?
opticalinterest 12/5/2012 | 3:45:49 AM
re: Bookham Slips Again SEC FILINGS BY BOOKHAM INC.
(www.sec.gov)

Item 1.01. Entry into a Material Definitive Agreement.

On March 29, 2006, the compensation committee of the board of directors of Bookham, Inc. (the GǣRegistrantGǥ) approved increases in the base salaries of Giorgio Anania, the RegistrantGs President and Chief Executive Officer, Stephen Abely, the RegistrantGs Chief Financial Officer and Jim Haynes, the RegistrantGs Chief Operating Officer and Acting Chief Technology Officer as follows: Dr. AnaniaGs base salary was increased to -264,000 (approximately $458,200); Mr. AbelyGs base salary was increased to $340,340; and Mr. HaynesG base salary was increased to -163,200 (approximately $219,550).
-----------

Item 1.01. Entry into a Material Definitive Agreement.

On November 11, 2005, the compensation committee of the board of directors of Bookham, Inc. (the GǣRegistrantGǥ) took the following actions:
G approved the award of restricted stock or restricted stock units to Giorgio Anania, the RegistrantGs President and Chief Executive Officer and a member of the board of directors of the Registrant, Stephen Abely, the RegistrantGs Chief Financial Officer, Stephen Turley, the RegistrantGs Chief Commercial Officer, and Jim Haynes, the RegistrantGs Chief Operating Officer and Acting Chief Technology Officer. Dr. Anania, Mr. Abely, Dr. Turley and Mr. Haynes were awarded 375,000, 250,000, 90,000 and 125,000 shares of restricted stock or such date.
opticalinterest 12/5/2012 | 3:45:49 AM
re: Bookham Slips Again IN RESPONSE TO: Suppose Bookham cauterizes its wounds and becomes break-even, at least. It's got tunable lasers now and some other interesting next-gen products in the works. Is its product portfolio attractive enough to spark an acquisition?

---> I BELIEVE THE ANSWER IS 'NO'. ACQUISITIONS OCCUR WHEN AN ACQUIRING COMPANY WANTS TO BUY A COMPANY THAT HAS NOT ONLY A LEADING PRODUCT CATEGORY POSITION, BUT ONE THAT ALSO COULD POTENTIALLY BRING ADDITIONAL STRONG MANAGEMENT TALENT TO THE COMBINED COMPANIES. BOOKHAM COMES UP WAY SHORT ON BOTH OF THOSE FRONTS COMPARED TO THEIR PEERS AND THEIR COMPETITORS.
Byron 12/5/2012 | 3:45:49 AM
re: Bookham Slips Again I would think they would be attractive now with a market cap of ~$150M. If you wait until they fix things (assuming success), their value would sky-rocket. Look at Oplink with a $350M market cap and a small fraction of BKHM revenues.

I also liked GA's estimate of the tunable laser market size, $5-$7M for each of the top 10 PER QTR? That makes the TAM approximately $200-$280M in 2007. I don't think so. Half of that would be aggressive. If I mis-heard and he meant PER YEAR, than $50-$70M doesn't justify his massive investment.

Doesn't add up?
DZED 12/5/2012 | 3:45:48 AM
re: Bookham Slips Again Opticalinterest,

You need to search through the old threads, this has all been looked at before.

Its very obvious the exec team is fleecing Bookham, and by default its shareholders, as fast as they possibly can.
Third rate performance seems to merit pay rises and bonuses.

It is a familiar theme with Anania and Abeley, when things go well (not often and usually bogus, eg Cramer) it is down to their masterful performance. When things go badly its events beyond their control. In both cases the board gives them more money. Someone should be suing the board.

In the meantime Rickman has strolled off with his $70m AND his ASOC patents and is free to start again.
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