OXFORDSHIRE, U.K., July 3, 2002 (PRIMEZONE) -- Taking advantage of its acquisition of Marconi's optical component business earlier this year, Bookham Technology plc (LSE:BHM) (Nasdaq:BKHM) today announced it will concentrate its worldwide production in two out of its current four facilities, manufacturing ASOC components at its Milton facility and active components at its Caswell site. Through an ongoing process efficiency programme, the company believes that it can now handle component production rates of 200 million pounds ($306 million) at Milton and similar levels at Caswell, permitting it to close its other two facilities in Maryland, U.S. and Swindon, U.K. The company believes that these closures will reduce costs without adverse impact on manufacturing capacity or on future sales rampup.The company estimates that its ongoing broader cost reduction efforts, of which the facilities realignment is an important part, will reduce its quarterly cash burn rate to between 10 million pounds and 12 million pounds ($15 million and $18 million), excluding restructuring costs, in the fourth quarter 2002. Following the completion of this cost reduction programme, the company expects to incur exceptional charges of 8 million pounds to 12 million pounds ($12 million to $18 million).
The company will announce its second quarter 2002 results on July 30, 2002 through its normal scheduled press release and conference call. The company's revenue for the quarter ended June 30, 2002 was 7.1 million pounds ($10.9 million) up 27% from first quarter 2002 5.6 million pounds; $8.6 million), in line with average analyst expectations. The company also reduced its quarterly cash burn to 13.8 million pounds ($21.1 million) from 22.2 million pounds ($33.4 million) in the first quarter 2002, and ended the quarter with 148.8 million pounds ($227.7 million) in cash. All U.S. dollar numbers have been translated at 1 pounds = $1.53 for the convenience of the reader.
The company will be hosting a conference call to discuss this release on Wednesday, July 3, 2002 at 10:30 a.m. (BST), 11:30 a.m. (CET), 05:30 a.m. (EST). Dial in numbers are as follows:
U.K./European participants 44 (0) 20 8240 8245 U.S. participants 1 800 513 7968
A taped recording will be available approximately 1 hour after the call ends for 5 days. Dial in numbers are as follows:
U.K./European participants 44 (0) 20 8288 4459 (access code: 679462) U.S. participants 1 703 736 7336 (access code: 679462)
Giorgio Anania President & CEOSteve Abely Chief Financial OfficerSharon Ostaszewska Director Communications Sarah MarslandSarah MannersJuliet Clarke Deborah ArdernJonesMatt Dallas
Bookham Technology (LSE:BHM) (Nasdaq:BKHM) designs, manufactures and markets integrated multifunctional active and passive optical components using high volume production methods. Using patented silicon-based ASOC, Gallium Arsenide and Indium Phosphide technologies, the company provides endtoend networking solutions that offer higher performance and greater systems capability to communications network system providers.
More information on Bookham Technology is available at www.bookham.com Bookham and ASOC are registered trademarks of Bookham Technology plc
Statements made in this financial commentary and elsewhere in this report include certain forwardlooking statements that involve risks and uncertainties. Important factors that could cause actual results to differ from those indicated by such forwardlooking statements include, among others, uncertainties relating to demand for the group's products, demand for optical components generally and overall future growth in the market for optical components, uncertainties relating to the group's investment in, and reorganization of, its manufacturing capacity, production equipment and personnel and related impact on profitability, quarterly variations in financial results, manufacturing capacity yields and inventory, intellectual property issues, issues surrounding integration of the optical components business acquired from Marconi and other uncertainties that are discussed in the "Risk Factors" section of the group's annual report on Form 20F for the fiscal year ended December 31, 2001, dated May 21, 2002, which is on file with the Securities and Exchange Commission. Forwardlooking statements represent the group's estimates as of the date made, and should not be relied upon as representing the group's estimates as of any subsequent date. While the group may elect to update forwardlooking statements in the future, it disclaims any obligation to do so.