London, UK Bookham Technology has reported a revenue growth of 157% in the financial year ended December 31, 2003. However the company says that this is clouded by the fact that the results for the full year 2002 were prior its to the acquisition of Nortel Networks and Marconi Communications (NNOC) and it is therefore difficult to draw meaningful comparisons with the full year 2003.
Revenues for 2003 were £89.1 million ($145.2 million), up 157%compared with £34.6 million for the same period in 2002. This increase was largely a result of Bookham's acquisition of NNOC which occurred on November 8, 2002.Nortel Networks and Marconi Communications represented 59% and 12% of sales respectively for the year. Sales to customers, other than Nortel and Marconi,increased by £15.1 million in 2003 over 2002, a 141% increase.
The gross loss (loss at the gross margin level) was £7.1 million ($11.6 million) under UK GAAP for 2003, down 60.8% from the same period in 2002. The gross margin loss under UK GAAP improved to 7.9% in 2003 from 52.2% in 2002, primarily as a result of restructuring actions including the closure of facilities and headcount reductions which reduced the company's fixed manufacturing overhead costs throughout 2003.
Research and development were down 8.4% due to restructuring actions, including the discontinuation of the company's ASOC product line in 2003. As a percentage of revenues, however, operating expenses declined to 69% in 2003, compared with 150.8% in 2002. Under US GAAP, operating expenses were £56.5 million, an increase of 11.0% over 2002.
Restructuring charges (primarily related to restructuring actions including the closure of the Ottawa manufacturing facility and the ASOC product line in Milton, UK, as well as a recognition of an income tax credit for Research and Development) were £15.1 million ($24.6 million).
Cash burn for the full year 2003 was £66.5 million ($108.4 million), down 16.2% for the same period in 2002.
Revenues in the fourth quarter in US Dollars, the principal currency in which the company receives orders, were $40.5 million, up 9.2% sequentially from $37.1 million in the third quarter 2003, and up 75.3% on the comparable quarter in 2002. In Sterling, the revenues were £24.0 million, up 3.9% on the third quarter 2003, from £23.1 million, and up 67.8% from £14.3 million in the fourth quarter 2002.