Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Bookham Technology -- Ignore unavailable to you. Want to Upgrade?

To: pass pass who wrote (120)	8/6/2000 8:13:40 AM
From: puborectalis	Respond to of 376

The Coming Week in Europe: Britain Awaits Fiber-Optic Darling's Report By Nick Watson Senior European Correspondent 8/6/00 12:40 AM ET LONDON -- In Britain next week, earnings results from Bookham Technology (BKHM:Nasdaq ADR - news) and QXL.com (QXLC:Nasadq ADR - news) -- two companies that belong to the so-called "New Economy" -- are expected to illustrate well the idea that a gold rush tends not to enrich those who dig the gold from the ground, but the companies that build the equipment to dig it out. Bookham, one of the new darlings of the British technology sector, will announce its second-quarter results on Wednesday. Analysts expect Bookham's revenues to increase to £4.2 million from £2.5 million the previous quarter and losses before interest and tax to fall to £5.7 million from £8.9 million. The excitement about Bookham centers on its proprietary manufacturing technology for silicon-based integrated optical circuits, which generate, detect, route and control light signals in fiber-optic telecommunications networks. This process, known as ASOC, replaces the conventional labor-intensive approach to manufacturing optical components with standard high-volume semiconductor production methods. Dr. Andrew Rickman, the founder and chief executive of Bookham, told TSC at an investors conference in London last week that when Bookham was founded 12 years ago "the use of silicon in optical chips looked physically impossible, but our technology is a poke in the eye of those who said it was not possible." Bookham finds itself in a market with enormous potential. The consulting group Ryan Hankin Kent forecasts that the compound annual growth rate for fiber-optic components will be 41% through to 2003, when it should reach $21.3 billion, compared with the $5.5 billion it was worth in 1999. Bookham's list of clients includes Nortel Networks and Lucent Technologies. Rickman says investing in Bookham is "not for the faint-hearted," since the company has large upfront capital requirements. In the first quarter, Bookham spent £3.4 million on capital equipment. Yet there appears to be no shortage of investors who are prepared to buy into the story. The stock closed Friday at £39.69, up 297% since the company listed in April, and is trading at about 175 times forecast 2000 sales. The experience of the U.K. Internet auction site QXL.com -- which will release its fiscal first-quarter results ended June 30 on Thursday -- couldn't be more different. At the investors' conference, a figure slipped into the lunchroom and stood at the back listening intently while Meg Whitman, CEO of eBay (EBAY:Nasdaq - news) was speaking. The man with the slightly worried expression was Jim Rose, the CEO of QXL. And worried he should be. In the fiscal year ended March 31, revenue increased 170% to £6.9 million, compared with £2.5 million the previous fiscal year. However, the operating loss ballooned to £32.8 million from £2.1 million. QXL's shares have fallen 994% since their high in March to close Friday at 68 pence. Much of that can be blamed on the daft 333 1/3 price-target slapped on the company in April by SG Cowen, which saw the shares rise 132% in one day. Yet investors are still concerned about QXL's expensive and risky strategy of buying its way into Europe through the acquisitions of Germany's Ricardo and Scandinavia's Bidlet. "QXL's strategy is fundamentally different to that of eBay," explains Derek Brown, analyst at Robertson Stephens. "While eBay has identified the high-growth markets and then established itself in these, QXL has chosen to expand via large acquisitions." As a result "QXL has got enormous complications because of different cultures [between the companies] and trying to establish a cohesive brand," Brown says. Brown has a buy recommendation on QXL. (Robertson has had an investment banking relationship with QXL.) In an interview with TheStreet.co.uk on Friday, Rose said he feels that the European market is big enough for two players, though definitely not three. On a merger with eBay? "Who knows if that is going to happen," says Rose. Who knows, indeed, but no doubt some QXL investors may be hoping it will.

To: pass pass who wrote (120)	8/10/2000 11:54:37 AM
From: pat mudge	Read Replies (2) \| Respond to of 376

WSJ gives good coverage: <<< August 10, 2000 Bookham Technology's Loss Widened But Revenue Surged in Second Quarter A WSJ.COM News Roundup LONDON -- Bookham Technology PLC Wednesday said its second-quarter pretax loss more than doubled from a year earlier as investment in staff, a new factory, and spending on product and business development increased. Bookham's pretax loss widened to 8.2 million pounds (13.6 million euros or $12.3 million), or seven pence a share, from 4 million pounds, or five pence a share, in the year-earlier period. Is Bookham Technology The Next Big Thing? (July 14) The optical-networking company's revenue, however, surged to 4.6 million pounds for the quarter, from 2.5 million pounds in the first quarter and from 413,000 pounds a year earlier, with 59% of sales coming from major customer Nortel Networks Corp. Bookham shares fell 2.22 pounds, or 5.04%, to 41.85 pounds Wednesday on the London stock exchange. Chief Financial Officer Stephen Cockrell said second-quarter growth had been driven by an increase in shipments of integrated optical circuits to telecoms services. Bookham expects to continue growing faster than the 35% annual growth rate of the fiber-optics industry, he added. "Our growth margin is trending in the right direction and profitability will depend entirely on our investment in product development and the growth of sales in the business," Mr. Cockrell said. "We will continue to invest in product development very strongly," he added. "In absolute terms I would expect it [investment in product development] to go up, but in relation to turnover I would expect it to decline." Research and development costs amounted to 3.3 million pounds in the second quarter, up 50% from 2.2 million pounds in the first quarter. The company's staff levels rose 50% to 590 people in the second quarter. Separately, Bookham said it is considering a secondary share offering, following its initial public offering in April. Mr. Cockrell said the offer would be made up of shares held by existing shareholders and perhaps some new shares to raise funds for further expansion. But the main reason for the offer would be to increase liquidity in the company's stock. "There has been some volatility in the share price and the advice [to us] is that we would benefit from such an offer," Mr. Cockrell said. Bookham, which joined the FTSE 100 Index in June, also announced that Chief Executive Andrew Rickman will take on the additional role of Chairman. The information-technology-hardware manufacturer has a market capitalization of about 5.9 billion pounds. It is the only company doing silicon-on-silicon optical grating on its chips, using basic, time-tested semiconductor manufacturing techniques. Others in the industry makes silica, or glass, on silicon gratings that guide the light on the chips. Bookham claims its technology will result in lower-cost components. The company also claims silicon results in less "cross-talk," or mixing between wavelengths, improving the quality of components. Competitors argue that silica components have better performance, with less loss of light when it is inserted into the chip. Bookham has contracts with the top five optical-networking-equipment makers in the world. >>>>