Bookham Slips Again
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