NOVEMBER 5--UK optical-component manufacturer Bookham Technology plc has announced improved third-quarter results despite tough market conditions. Revenues for the quarter were up 6% on the previous quarter at L7.6 million ($12 million) and up 217% from the same period last year. "The third quarter was a good quarter, with revenues up and cash burn down, notwithstanding the difficult market environment," said Giorgio Anania, president and chief executive.
The net loss in the third quarter, excluding restructuring charges, was reduced to L13.5 million ($20.9 million) from L15.3 million ($23.7 million) in the second quarter 2002 as a result of continued cost-reduction measures, according to the company.
Earlier this month, Bookham agreed to buy Nortel Networks' optical components business. The company also entered into a supply agreement with Nortel. As a result of the deal, which is expected to close before mid-November, Bookham expects fourth-quarter revenues to increase at least 50% from the third quarter and to approximately double from fourth-quarter 2002 to first-quarter 2003.
In the near term, Bookham expects cash burn to increase in the fourth quarter as a result of costs and expenses incurred by the Nortel acquisition before declining to current levels by mid 2003.
