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paolo.franzoi 12/5/2012 | 3:15:25 PM
re: Bookham Readies More Cuts
I think you should take a step back from EBITA for a second. Is Bookham generating or losing cash? That is the number 1 issue by a long shot. They have been burning cash for so long, that it has threatened their survival. Once you are generating cash, then the business can live. EBIDTA and worse yet EPS are affected by that black art of accounting rules. Cash is real.

seven
Bookedout 12/5/2012 | 3:15:25 PM
re: Bookham Readies More Cuts Losing the execs would save at least 2m a per Q, judging from other posts ... I'm guessing this is the "stock based compensation included in the following:". So, at least 10% of the savings needed achieved through losing 0.1% of the workforce .. good deal!
twill009 12/5/2012 | 3:15:24 PM
re: Bookham Readies More Cuts To make matters worse, what management said was "adjusted EBITDA quarterly breakeven level" would be $55-57 million. "Adjusted" basically means excluding anything they want from the number -- i.e., non-GAAP, pro forma. Executive stock compensation is one such expense.

Why not just say "profits before any expenses?" It would be a lot simpler.

Sick. Oughtta be a law. Or rather, somebody should enforce existing laws. Where is Elliot Spitzer when you need him?
deauxfaux 12/5/2012 | 3:15:24 PM
re: Bookham Readies More Cuts "Bonex"....absolutely brilliant
deauxfaux 12/5/2012 | 3:15:24 PM
re: Bookham Readies More Cuts Hmmmmm company started in 1988 and never a single profitable quarter, much less a quarter with positive cash flow. The land of "one time charges" that flow every quarter, and an agreement with NT that has stuffed them so full of parts that they can't take any more (~45% to 26% last quarter to 5-10% next quarter).

But since the shareholders don't seem to mind any of this and have always have been willing to open their checkbooks when Georgio's travelling circus fleeces wall street every 12-18 months

Life is good for Georgio....2M in exec bonuses paid, about to go on a 3 week vacation...not a care in the world.



deauxfaux 12/5/2012 | 3:15:23 PM
re: Bookham Readies More Cuts When you can't make your first nickel of profit in 18 years while burning $1,000,000,000. the public needs the appropriate warnings

BKHM is so toxic to investors that they should be required to have warning signs on their stock certificates like cigarettes. WARNING, YOUR THE COMPTROLLER GENERAL HAS DETERMINED THAT BKHM STOCK IS HAZARDOUS TO YOUR NET WORTH.

That or they could put up a sign (like the old McDonalds that said "over 1 billion served") with the appropriate warning "OVER $1,000,000,000 BURNED"

The best long term solution is for Georgio to run for political office, as he could teach any of the "Teflon Pols" a thing or two about escaping accountability, and Governments have a lot more cash than BKHM. Conceivably, this is one way to solve the trade imbalance with CHINA, but the Chinese would never put up with it.

Perhaps France?
alcabash 12/5/2012 | 3:15:22 PM
re: Bookham Readies More Cuts Office in Canada is closed and Bookham is laying off all employees.
All software and amplifier design activities for Nortel are cancelled.
Cathi48 12/5/2012 | 3:15:21 PM
re: Bookham Readies More Cuts Alcabash, you wrote, "All software and amplifier design activities for Nortel are cancelled."

Does that mean those design activities are being moved to another Bookham location or cancelled altogether?

Thanks.

Cathi
opticalinterest 12/5/2012 | 3:15:21 PM
re: Bookham Readies More Cuts
The important thing to know is how may this Ottawa shutdown and the major layoffs also in the UK impact Giorgio's three week holidays he has planned starting next week.

I sure hope there is no impact as it would be tragic to have this important rest period which he so dearly needs be disturbed with such events.
DZED 12/5/2012 | 3:15:21 PM
re: Bookham Readies More Cuts Its all a load of crap. EBITDA is meaningless.
I too don't understand how saving $6-7m/qtr is going to turn a $20m loss into a profit.
They might as well say:

"The meaningless figure we have invented which does not conform with generally accepted accounting practice is going to exceed another meaningless figure. The net meaning is nothing, we are still going to making a great fat loss."

"When we say 'we' we mean 'you the shareholders' will be making a great fat loss.
When we say 'we' meaning 'ourselves the execs' we will be coining it big time as we have managed to appoint a supine board who rubber stamps every cash theft wheeze we can dream up."

Tapalroze, I have no idea how Anania calculates the bonus he pays himself (I am CEO, my performance is crap - I must have bonus, you mere cubicle monkeys working hard and delivering the goods on time and on budget you can do without cost of living increase for the next two years).

As for the exec team payoff, I can't remember exactly, its somewhere in the SEC filings, maybe a previous post, you can trawl through and add it up.

Roughly speaking to ditch the execs would cost several million dollars in severance, plus their two year rolling contract salary, plus compensation for any unused share options, plus any stock they hold (which is a lot, they just gave themselves a pile of stock), plus no doubt wads of cash to go quietly.
Say ballpark $5m to ditch the current incompetent exec team. I guess Avanex choked on that.

Really the board should just fire them for incompetence and graft, but they are deep in Anania's pocket so its not going to happen.

The BOD are selling off stock too BTW.
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