BKHM beats by $0.01, beats on revs; guides Q4 revs in-line
Bookham Third Quarter Fiscal Year 2008 Financial Results Represent Strong Year-Over-Year Improvement
Monday April 28, 4:00 pm ET
SAN JOSE, Calif., April 28 /PRNewswire-FirstCall/ -- Bookham, Inc. (Nasdaq: BKHM - News), a leading provider of optical components, modules and subsystems, today announced financial results for its third quarter of fiscal year 2008, ended March 29, 2008.
Third Quarter Fiscal 2008 GAAP Results
Revenue for the third quarter of fiscal 2008 was $59.7 million, an increase of 33 percent from $45.0 million in the third quarter of fiscal 2007 and 1 percent over the second quarter of fiscal 2008.
Gross margin in the third fiscal quarter was 22 percent, up 12 percentage points from 10 percent in the same quarter last year and down 1 percentage point from last quarter. Third quarter fiscal 2008 net loss of $5.4 million, or a net loss of $0.05 per share, compares with a net loss of $24.3 million, or a net loss of $0.35 per share, in the third quarter last year, and a net loss of $5.2 million, or a net loss of $0.06 per share, last quarter.
Cash, cash equivalents, short term investments and restricted cash at the end of March 2008 were $54.7 million, compared with $64.7 million at the end of the December 2007.
Third Quarter Fiscal 2008 Non-GAAP Results
Adjusted EBITDA for the third fiscal quarter was negative $1.1 million, an improvement of approximately $13.0 million when compared with negative Adjusted EBITDA of $14.1 million in the third quarter of fiscal 2007. Adjusted EBITDA in the second quarter of fiscal 2008 was positive $0.3 million.
Non-GAAP gross margin of 23 percent, which excludes stock compensation of $380,000, represents an increase of 12 percentage points from 11 percent in the third quarter of fiscal 2007. Non-GAAP gross margin last quarter was 24 percent.
Third quarter fiscal 2008 non-GAAP net loss of $3.4 million, or $0.03 per share, compares with a non-GAAP net loss of $18.7 million, or net loss of $0.27 per share, in the third quarter of fiscal 2007 and a non-GAAP net loss of $1.1 million, or a net loss of $0.01 per share, in the prior quarter. A reconciliation table of non-GAAP measures to the most comparable GAAP measures is included in the financial tables section of this release and further discussion of these measures is also included later in this release.
Non-cash stock and option-based compensation for the third quarters of fiscal 2008 and fiscal 2007, and the second quarter of fiscal 2008, were $1.2 million, $1.3 million and $2.7 million, respectively. Included in the second quarter fiscal 2008 results were $1.5 million of expense related to performance based vesting of stock.
"The year-over-year financial improvement is very significant and the result of the initiatives implemented last year to increase revenue and lower costs. Increased revenue came mostly from strategic products that are important to our long-term success. These include tunable products, 980nm pumps, and high power lasers. Also, the cost reduction measures we put in place have yielded approximately $9 million in quarterly infrastructure savings from the December 2006 quarter levels and have reduced product costs," said Alain Couder, president and CEO of Bookham Inc. "Our outlook for the remainder of calendar 2008 is positive. We continue to see increasing demand for our newer telecom products, and we are reducing our non-telecom product manufacturing overheads through leveraging our low-cost Shenzhen manufacturing facility. These cost improvements should translate into better margin results. We believe that continued revenue growth, margin improvement on our new products, and overhead cost management during the second half of 2008 will result in a transition to positive cash flow from operations before the end of the calendar year."
Fourth Quarter Fiscal 2008 Outlook
For the fourth quarter of fiscal 2008, ending June 28, 2008, excluding restructuring and other non-recurring charges, the Company expects:
-- Revenue in the range of $58 million to $63 million
-- Non-GAAP gross margin between 21 percent and 25 percent
-- Adjusted EBITDA of negative $3 million to positive $1 million
