HighWave Optical Technologies announces a restructuring plan aimed at achieving a positive EBITDA for the next fiscal year

August 29, 2002

2 Min Read

LANNION, France -- HighWave Optical Technologies, (Nouveau Marché: HGWO), a leading European supplier of Dense Wavelength Division Multiplexing (DWDM) sub-systems for the deployment of high-speed optical telecommunication infrastructures, today announced a restructuring plan to adapt the cost structure to the current sales level given the industry downturn.In conjunction with the Company’s objective of achieving a positive EBITDA for next fiscal year starting April 1, 2003, combined with the current view on forecasted revenues, the Company is implementing a restructuring plan bringing the headcount to 58, through a reduction of 109, mostly in overhead and production, coupled with an expense reduction program initiated one year ago. Through the restructuring, the Company is maintaining its design and development resources to meet the current requirements of customers.“As with the optical components market in general, we have experienced a revenue decline, together with a fundamental change of mix between volume orders and prototype orders” commented Eric Delevaque, Chairman and CEO. “Between 1999 and 2001, we were able to respond to the explosion of our customers’ requirements for the first generation of DWDM. During that period, our revenue mix between volume production and prototypes was approximately 90% to 10%. In 2002, volume orders have been reduced significantly as a result of the reduced level of capital expenditures by telecommunication operators together with the size of inventories.” “Our sales revenue forecast for this current fiscal year ending March 31, 2003 is comprised of 80% prototype shipments, needed to build the second generation of optical networks, which should generate significant volume orders after 2004,” added Mr. Delevaque. “Longer term the forecast depends on the introduction schedule of this new generation. We have recently seen a growing number of customers, prospects and new references on all continents, reflecting both the recognition of our products by the market and also the reduced number of suppliers as an effect of the current environment.” “The main objective of the management team,” commented Arnaud Chazalon, CFO, “is to achieve a positive EBITDA next year. We are reinforcing our pervasive-expense reduction program in order to ensure we have enough resources when growth returns.” HighWave Optical Technologies

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