Bookham/Avanex merger creates "Oclaro" entity

April 28, 2009
April 28, 2009--Yesterday, Bookham and Avanex merged into a new market entity called "Oclaro", now one of the largest providers to the long-haul and metro telecom markets, and the fourth largest provider of optical components and subsystems to the fiber optics market. President and CEO Alain Couder said the name stands for optical and clarity of vision, with official tagline "Shining light on photonic innovation." Bookham and Avanex agreed to merge back in January 2009.

April 28, 2009--Yesterday, Bookham and Avanex merged into a new market entity called "Oclaro", now one of the largest providers to the long-haul and metro telecom markets, and the fourth largest provider of optical components and subsystems to the fiber optics market. President and CEO Alain Couder said the name stands for optical and clarity of vision, with official tagline "Shining light on photonic innovation." Bookham and Avanex agreed to merge back in January 2009.

Q3 fiscal 2009 results

Oclaro announced the financial results of Bookham for the third quarter of its fiscal year 2009, ended March 28, 2009. Revenues for the third quarter of fiscal 2009 were $47.0 million, compared to $50.2 million in the second quarter of fiscal 2009, and $59.7 million in the third quarter of fiscal 2008 (Bookham also saw record results in its first quarter fiscal 2009). Revenues in the third quarter of fiscal 2009 include $1.9 million recognized upon collection of cash from shipments made to Nortel Networks and a related contract manufacturer in the second quarter of fiscal 2009.

Gross margin for the third quarter of fiscal 2009 was 23%, compared to gross margin of 17% in the second quarter of fiscal 2009, and gross margin of 22% in the third quarter of fiscal 2008. Excluding the $1.9 million positive impact from the recognition of revenues on prior quarter shipments described above, gross margin for the third quarter of fiscal 2009 was 20%.

"Despite the lower third quarter revenues that were driven by the economic downturn, we held our adjusted EBITDA close to break even," said Couder. "Moving forward, we expect the merger with Avanex Corporation, which closed today, to further accelerate our progress towards profitability. Under our new corporate name, 'Oclaro,' our combined companies are well positioned to leverage our complementary product portfolios, operational synergies and strong balance sheet to accelerate our progress to our long-term financial model."

Fourth quarter fiscal 2009 outlook

The results of Oclaro for the fourth quarter of fiscal 2009, which ends June 27, 2009, and which include the results of Bookham for the full quarter and the results of Avanex Corporation from April 28, 2009 through June 27, 2009, are expected to see revenues in the range of $67 million to $75 million and non-GAAP gross margin between 17% and 23%, which excludes stock-based compensation.

Oclaro says it combines in-house and outsourced manufacturing to maximize flexibility and drive improved gross margin. Its photonic technologies also serve selected potential high growth markets, including industrial, defense, life sciences, semiconductor, and scientific, with diversification providing both significant potential revenue streams and strategic technological advantage.

For more information, go to www.oclaro.com.

--Posted by Gail Overton, [email protected]; www.laserfocusworld.com.

For more first-hand and originally reported business news in the optoelectronics and photonics industry, please subscribe to Optoelectronics Report at www.optoelectronicsreport.com, the twice-monthly eNewsletter from the editors at Laser Focus World and BioOptics World that covers both national and international business news and market trends and tracks technology advances to interpret their business implications.

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