Bookham Technology plc Announces First Quarter Results 2001

Apr 25, 2001, 01:00 ET from Bookham Technology plc

    OXFORDSHIRE, England, April 25 /PRNewswire/ --
 Bookham Technology plc (Nasdaq:   BKHM) (LSE: BHM), a leading supplier of
 silicon integrated optical components for fibre-optic communication networks,
 today announced results for the first quarter ended April 1, 2001.
 
     Financial Highlights
     * Revenues were 11.6 million British pounds sterling (pounds)
       ($16.5 million) compared to 11.5 million pounds ($16.3 million) in the
       previous quarter and up 362% from the comparable quarter in 2000.
 
     * During the quarter gross margins from on-going operations continued to
       improve.  However, a charge of 0.6 million pounds ($0.9 million) was
       taken as a provision for excess stock resulting from the lack of
       short-term visibility in sales.  In addition, a charge of
       1 million pounds ($1.4 million) was made as a result of the company's
       previously announced voluntary workforce reduction programme.
 
     * Gross margin, before the above adjustments, was near breakeven at
       approximately -1% as expected.
 
     * Sales of the company's Dense Wavelength Division Multiplexing (DWDM)
       products increased from 33% to 38% of total revenues, with access
       products representing the remaining 62%.
 
     * The company's largest customer this quarter was Nortel representing 36%
       of sales.  Other major customers were Marconi Communications, at 27% of
       sales, and Fujitsu Telecommunications Europe, at 14% of sales, both
       increasing from the previous quarter and demonstrating further
       diversification of the company's customer base.
 
     * Net loss under UK GAAP was 11.7 million pounds ($16.6 million) compared
       to 8.5 million pounds ($12.1 million) in the previous quarter, which
       included a 3 million pound ($4.3 million) credit relating to National
       Insurance charges on share options.
 
     * Under US GAAP, net loss was 12.4 million pounds ($17.6 million) compared
       to 11.5 million pounds ($16.3 million) in the previous quarter.
 
     * Cash balances at the end of the quarter amounted to 238 million pounds
       ($338 million) after capital investment of 23.3 million pounds
       ($33.1 million).
 
     Commenting on the first quarter results, Giorgio Anania, President and
 Chief Executive Officer, said:
     "Despite the current difficult economic environment, we continue to
 increase our momentum in customer activity toward securing further DWDM design
 wins.  Our ASOC technology continues to provide distinct competitive
 advantages for optical integration as demonstrated with our new metro node
 solution at the recent Optical Fibre Conference in March.  At this conference
 our target customers confirmed their strong and increasing level of interest
 in Bookham's current and future product platforms.
     "We have achieved ambitious targets in cutting overall costs this quarter
 and will continue to be cost-conscious throughout this period of volatility.
 Our cash balance remains strong, which allows us to continue to invest in
 research and development.  We believe this will enable us to accelerate new
 product development to position the company for strong growth in the future."
 
     Operating Review
 
     Products and Technology
     Revenues from all four DWDM products contributed to sales as the company
 shipped components to a wider set of customers.  The company's newest product,
 the Mux-VOA, introduced in the last quarter, is already generating
 considerable commercial interest and is receiving favourable feedback on its
 performance from customer evaluations.
     The ASOC platform continues to demonstrate its unique capabilities for
 integration, providing an economical solution for applications in the DWDM
 metropolitan market area.  At the Optical Fibre Conference (OFC), in March the
 company made a working demonstration of an optical metro solution on a single
 silicon chip -- an ASOC Optical Add/Drop Multiplexer.
 
     Organisation
     As a result of a reorganisation and voluntary workforce reduction
 programme, the total headcount decreased by 17% during the quarter from
 978 to 812.  The company has continued to strengthen its management and
 operational team, which is complemented by a very focused research and
 development effort.
 
     Acquisitions and Investments
     As previously announced, the company acquired Measurement Microsystems in
 Canada, as well as all assets and the lease on its North American Headquarters
 facility in Columbia, Maryland.  These acquisitions closed in January and
 February 2001, respectively.
     The company has quickly integrated product development with Measurement
 Microsystems and joint demonstrations at OFC were well received by customers.
 The company expects these developments to result in commercial products
 in 2002.
 
     Outlook
     The optical equipment market has become less predictable, leading the
 company and its customers to institute a very cost-conscious approach.  The
 market slow down across the company's customer base is affecting
 decision-making processes and, as a result, the company is experiencing a
 reduction in demand and order deferrals.  Over time, the company believes that
 this pressure may cause the optical system vendors to consider more
 cost-effective integrated component solutions, which play to the strengths of
 our ASOC technology.
 
     Financial Commentary
     All US dollar numbers have been translated at $1.42 = 1 pound for the
 convenience of the reader.
 
     First Quarter ended April 1, 2001
     Revenue for the first quarter ended April 1, 2001 was 11.6 million pounds
 ($16.5 million), representing an increase of 1% over the previous quarter and
 an increase of 362% on the comparable quarter in 2000.
     Sales of the company's DWDM product range represented 38% of total
 revenues.  Access products (transceivers and mini-DIL transmitters and
 receivers) represented 62% of revenues during the quarter.  Nortel accounted
 for 36% of revenues during the quarter, compared to 51% in the previous
 quarter.  Other significant customers in this quarter include Marconi
 Communications, representing 27% of revenues, and Fujitsu Telecommunications
 Europe, representing 14% of revenues.
     Gross margins improved during the quarter.  A charge of 1 million pounds
 ($1.4 million) relating to 139 voluntary separations in manufacturing, was
 made to cost of sales during the quarter.  Due to poor short-term visibility
 in sales, excess stocks generated a further specific provision of 0.6 million
 pounds ($0.9 million).  Without these adjustments, gross margins for the
 quarter were approximately -1%.  With these adjustments gross margins were
 -15%.
     Under UK GAAP, research and development (R&D) costs incurred during the
 first quarter 2001 were 10.3 million pounds ($14.6 million).  This includes
 costs of 0.4 million pounds ($0.6 million) relating to the development of the
 company's new US facility in Maryland.  The cost also includes a 0.5 million
 pound ($0.7 million) provision for the voluntary workforce reduction programme
 and a 0.6 million pound ($0.9 million) amortisation charge in respect to
 goodwill on acquiring Measurement Microsystems.  The balance of
 8.8 million pound ($12.5 million) represents an increase of 16% over the
 previous quarter and reflects the company's commitment to new product
 development.
     Under US GAAP, R&D costs incurred during the first quarter 2001 were
 10.2 million pounds ($14.5 million), lower than UK GAAP by 0.1 million pounds
 ($0.1 million) due to a lower charge for amortisation of goodwill on a US GAAP
 basis.
     Under US GAAP, selling, general and administrative costs in the first
 quarter were 3.9 million pounds ($5.5 million) a reduction of 13% from the
 fourth quarter 2000, after deduction for the write-offs in the fourth quarter
 relating to acquisitions.  This figure reflects the company's efforts and
 focus on cost control.
     Under UK GAAP, the company's cash balance at the end of the first quarter
 stands at approximately 238 million pounds ($338 million) and net interest
 income was over 3.6 million pounds ($5.1 million).  During the quarter the
 company's cash balance decreased by 27.1 million pounds ($38.5 million).  This
 comprised of 6.8 million pounds ($9.7 million) to fund the cash portion of the
 acquisition of Measurement Microsystems, 16.5 million pounds ($23.4 million)
 for capital expenditure purchases and the remainder to fund working capital
 and operating losses.
     During the quarter the acquisition of Measurement Microsystems was
 completed.  The accounting treatment of the acquisition differs between UK and
 US GAAP as explained in the notes to the financial statements.
     Under UK GAAP, the current estimate of total consideration is 26 million
 pounds ($37 million).  The initial payment is 6.8 million pounds
 ($9.7 million) in cash and 19.2 million pounds ($27.3 million) in shares of
 Bookham Technology, of which 703,000 shares, valued at 2.2 million pounds
 ($3.1 million), will be issued in the future if performance milestones are
 achieved.
     Under US GAAP the contingent consideration of 2.2 million pounds
 ($3.1 million) is not recorded until the performance milestones have been
 achieved.
     The resulting goodwill is 23.6 million pounds ($33.5 million) and
 20.7 million pounds ($29.4 million) under UK and US GAAP respectively, which
 are both being amortised over seven years.  The company is currently assessing
 the value of any IPR&D acquired.
     Under UK GAAP, the potential future cost of National Insurance on
 unexercised options continues to be recognised as the options vest.
 Principally due to a decrease in the market price of the company's shares the
 provision for National Insurance liability under UK GAAP reduced by
 0.7 million pounds ($1 million) this quarter to 0.2 million pounds
 ($0.3 million).
     Before exceptional items, the net loss for the quarter under UK GAAP was
 10.1 million pounds ($14.3 million) compared to 8.5 million pounds
 ($12.1 million) for the previous quarter and 6.1 million pounds ($8.7 million)
 in the same quarter in 2000.  After exceptional items, the net loss for the
 quarter under UK GAAP was 11.7 million pounds ($16.6 million).
     Under US GAAP, before separation charges, the net loss for the quarter was
 10.8 million pounds ($15.3 million), compared to 11.5 million pounds
 ($16.3 million) for the previous quarter and 5.5 million pounds ($7.8 million)
 in the same quarter last year.  After separation charges, the net loss for the
 quarter was 12.4 million pounds ($17.6 million).
 
     The company will be hosting a conference call on to discuss this set of
 results on Wednesday April 25, 2001 at 13:30 GMT, 08:30 EST.  Dial in numbers
 are as follows:
     UK/European participants     +44-20-8240-8243
     US Participants              +1-303-267-1007
 
     A taped recording will be available approximately 1 hour after the call
 ends for 5 days.  Dial in numbers are as follows:
 
     UK/European participants     +44-20-8288-4459
                                  (access code: 6000572)
     US Participants              +1-303-804-1855
                                  (access code: 998348)
 
     The company's Annual General Meeting takes place on Thursday, April 26,
 2001 at 10:00 GMT and will be held at The Oxford Centre, 333 Banbury Road,
 Oxford, UK.
 
     Bookham Technology (LSE: BHM; Nasdaq:   BKHM) designs, manufactures and
 markets components that integrate optical processing functions on a single
 silicon chip using high volume production methods.  Using patented
 silicon-based ASOC technology, the company's products generate, detect, route
 and control light signals, allowing communications network providers to build
 systems with advanced optical processing capabilities to help meet the growing
 demands of Internet traffic.  The company, whose securities are traded on
 Nasdaq and the London Stock Exchange, is headquartered in the UK, with
 facilities in the US, France and Japan, and employs approximately 800 people
 world-wide.
     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 press release that are not historical facts
 include forward-looking statements that involve risks and uncertainties.
 Important factors that could cause actual results to differ from those
 indicated by such forward-looking statements include, among others, the need
 to manage manufacturing capacity, production equipment and personnel to
 anticipated levels of demand for products, the related impact on margins,
 acceptance of our ASOC product line, reductions in demand for optical
 components, expansion of our business operations, quarterly variations in
 results, manufacturing capacity yields and inventory, intellectual property
 issues and other uncertainties that are discussed in the "Risk Factors"
 section of our Registration Statement on Form F-1 dated September 19, 2000
 which is on file with the Securities and Exchange Commission, and our Annual
 Report and 20-F to be filed in May 2001 with the Securities and Exchange
 Commission and of our listing particulars dated March 27, 2000 filed with the
 United Kingdom Listing Authority and the Registrar of Companies in England and
 Wales.  Forward-looking statements represent our estimates as of today, and
 should not be relied upon as representing our estimates as of any subsequent
 date.  While we may elect to update forward-looking statements in the future,
 we disclaim any obligation to do so.
 
 
                               Bookham Technology plc
                    Consolidated Profit and Loss Account for the
                     First Quarter Ended 1 April 2001 - UK GAAP
 
                             Before                      After
                        Exceptional   Exceptional  Exceptional      Quarter
                              Items         Items(1)     Items        Ended
                            1 April       1 April      1 April      2 April
                               2001          2001         2001         2000
                          Unaudited     Unaudited    Unaudited    Unaudited
                           000's of      000's of     000's of     000's of
                             pounds        pounds       pounds       pounds
 
     Turnover                11,611            --       11,611        2,514
     Cost of sales          (12,284)       (1,036)     (13,320)      (3,930)
     Gross loss                (673)       (1,036)      (1,709)      (1,416)
     Administrative expenses
         Research and
          development        (9,772)         (524)     (10,296)      (2,241)
         National Insurance
          on stock options      627            --          627         (413)
         Other               (3,895)         (114)      (4,009)      (2,060)
                            (13,040)         (638)     (13,678)      (4,714)
     Other operating income      16            --           16           --
     Operating loss         (13,697)       (1,674)     (15,371)      (6,130)
     Interest, net            3,635            --        3,635           77
     Loss on ordinary
      activities before
      taxation              (10,062)       (1,674)     (11,736)      (6,053)
     Tax on loss on ordinary
      activities                 --            --           --           --
     Loss for the financial
      period                (10,062)       (1,674)     (11,736)      (6,053)
 
     Loss per ordinary share (basic and diluted)
     After National Insurance
      on stock options     GBP(0.08)     GBP(0.01)    GBP(0.09)    GBP(0.06)
     Before National Insurance
      on stock options     GBP(0.08)     GBP(0.01)    GBP(0.10)    GBP(0.06)
 
     Weighted average ordinary shares
      Outstanding ('000)    127,760       127,760      127,760       97,221
 
     (1) Exceptional costs arose as a result of the redundancy of 190 employees
         at our manufacturing facilities in Swindon, UK and at our UK
         headquarters in Abingdon.
 
     Statement of Total Recognised Gains and Losses
 
                                               Quarter ended
                                                1 April 2001   2 April 2000
                                                   Unaudited      Unaudited
                                                    000's of       000's of
                                                      pounds         pounds
 
     Loss for the financial period                   (11,736)        (6,053)
     Exchange difference on translation
      of foreign subsidiaries                             --              2
     Total loss recognised in the year               (11,736)        (6,051)
 
 
                             Bookham Technology plc
                      Consolidated Balance Sheet - UK GAAP
 
                                1 April 2001    2 April 2000   31 Dec 2000
                                   Unaudited       Unaudited       Audited
                                    000's of        000's of      000's of
                                      pounds          pounds        pounds
 
     Intangible fixed assets          27,521              --           447
     Tangible assets                  51,738          12,837        44,264
 
     Stocks                            7,682           1,757         6,961
     Debtors                          12,371           4,902        13,239
     Short-term investments            1,521          11,805         1,525
     Cash at bank and in hand        237,996           3,896       265,083
                                     259,570          22,360       286,808
     Creditors: amounts falling
      due within one year            (24,949)         (8,988)      (25,572)
     Net current assets              234,621          13,372       261,236
 
     Total assets less current
      liabilities                    313,880          26,209       305,947
     Creditors: amounts falling due
      after more than one year          (651)         (1,926)         (897)
     Provisions for liabilities
      and charges                       (241)         (1,326)         (988)
 
     Net assets                      312,988          22,957       304,062
 
     Capital and reserves
     Called up capital                   428          12,801           424
     Share premium account           322,643           7,816       321,388
     Other reserve                    22,232             728         2,829
     Profit and loss account         (32,315)          1,612       (20,579)
 
     Equity shareholders' funds      312,988          22,957       304,062
 
 
                             Bookham Technology plc
                    Consolidated Cash Flow Statement for the
                   First Quarter Ended 1 April 2001 - UK GAAP
 
                                           Quarter ended         Year ended
                                     1 April         2 April        31 Dec
                                        2001            2000          2000
                                   Unaudited       Unaudited       Audited
                                000's pounds    000's pounds  000's pounds
 
     Net cash outflow from
      operating activities            (7,941)         (5,231)      (38,167)
 
     Returns on investments and
      servicing of finance             3,685             127         9,770
 
     Capital expenditure and
      financial investment           (16,548)         (2,466)      (28,735)
 
     Acquisition                      (6,796)             --            --
 
     Management of liquid resources        4          (4,590)        5,690
 
     Financing                           509          12,117       312,591
 
     (Decrease)/Increase in cash     (27,087)            (43)      261,149
 
 
                             Bookham Technology plc
                 Consolidated Statement of Operations - US GAAP
 
                                                  Quarter ended
                                     1 April         2 April       1 April
                                        2001            2000        2001(1)
                                   Unaudited       Unaudited     Unaudited
                                000's pounds    000's pounds         $'000
 
     Net revenues:
      Product                         11,611           2,420        16,488
      Development contracts               --              94            --
                                      11,611           2,514        16,488
     Costs and expenses:
      Cost of net revenues
       Product (2)                    13,320           3,875        18,916
       Development contracts              --              55            --
     Research and development (2)     10,242           2,241        14,544
     Selling, general and
      Administrative (2)               3,896           2,034         5,530
     National Insurance on
      stock options                      121              --           172
     Stock-based compensation            116             133           165
     Total costs and expenses         27,695           8,338        39,327
     Operating loss (2)              (16,084)         (5,824)      (22,839)
      Other income                     3,654             185         5,188
     Loss before income taxes        (12,430)         (5,639)      (17,651)
      Cumulative effect of change
       In accounting policy               --             174            --
 
     Net loss (2)                    (12,430)         (5,465)      (17,651)
 
     Net loss per ordinary share
      and ADS (basic and diluted):(2)
       After National Insurance
        on stock options            GBP(0.10)       GBP(0.06)     GBP(0.14)
     Before National Insurance
      on stock options              GBP(0.10)       GBP(0.06)     GBP(0.14)
     Weighted average ordinary shares
      and ADSs outstanding ('000)    127,760          97,221       127,760
 
     (1) Translated solely for the convenience of the reader at the rate of
         $1.42 = 1 pound
 
     (2) The company recorded charges for voluntary separations of 190
         employees in the first quarter 2001 as follows:
 
 
                                Amount   Redundancy         Amount      Amount
                            including       Charges      excluding   excluding
                              charges                      charges     charges
                         000's pounds  000's pounds   000's pounds       $'000
 
     Cost of net product
      revenue                  13,320         1,036         12,284      17,443
     Research and
      development              10,242           524          9,718      13,800
     Selling, general and
      administrative expenses   3,896           114          3,782       5,370
     Operating loss           (16,084)       (1,674)       (14,410)    (20,462)
     Net loss                 (12,430)       (1,674)       (10,756)    (15,274)
 
 
                             Bookham Technology plc
                      Consolidated Balance Sheet - US GAAP
 
                                     1 April          31 Dec       1 April
                                        2001            2000        2001(1)
                                   Unaudited         Audited     Unaudited
                                000's pounds    000's pounds         $'000
     Assets
     Current Assets:
      Cash and cash equivalents      239,067         266,158       339,475
      Restricted cash                    450             450           639
      Accounts receivable             10,219           9,009        14,511
      Inventories                      7,682           6,961        10,908
      Prepaid expenses and other
       current assets                  2,152           4,230         3,056
          Total current assets       259,570         286,808       368,589
     Intangible assets                25,325             447        35,961
     Property and equipment           51,738          44,264        73,468
                                     336,633         331,519       478,018
 
     Liabilities and Shareholders' Equity
     Current liabilities:
      Accounts payable and other
       accrued expenses               24,949          25,572        35,427
          Total current liabilities   24,949          25,572        35,427
     Long-term obligations               651             897           924
     Shareholders' equity            311,033         305,050       441,667
                                     336,633         331,519       478,018
 
     (1) Translated solely for the convenience of the reader at the rate of
         $1.42 = 1 pound
 
 
     The principal differences between the company's accounting policies under
 UK GAAP and those that would have been followed had the financial information
 been prepared under US GAAP are set out below:
 
              UK/US GAAP Reconciliation - Profit and Loss Account
 
                                                          Quarter ended
                                                      1 April        2 April
                                                         2001           2000
                                                    Unaudited      Unaudited
                                                 000's pounds   000's pounds
 
     Loss on ordinary activities before taxation
     under UK GAAP                                    (11,736)        (6,053)
     Amortisation of intangible assets                     54             --
     National Insurance on stock options                 (748)           588
 
     Loss before income taxes under US GAAP           (12,430)        (5,465)
 
 
                   UK/US GAAP Reconciliation - Balance Sheet
 
                                                      1 April         31 Dec
                                                         2001           2000
                                                    Unaudited        Audited
                                                  000's pounds    000's pounds
 
     Cash under UK GAAP                               237,996        265,083
     Short term investments                             1,521          1,525
     Cash and cash equivalents and
      restricted cash under US GAAP                   239,517        266,608
 
     Intangible assets under UK GAAP                   27,521            447
     Accumulated amortisation of intangibles               54             --
     Contingent consideration                          (2,250)            --
     Intangible assets under US GAAP                   25,325            447
 
     Shareholders' funds under UK GAAP                312,988        304,062
     Acquisition accounting differences                (2,196)            --
     National Insurance liability difference              241            988
     Shareholders' funds under US GAAP                311,033        305,050
 
     Summary of significant differences between UK Generally Accepted
 Accounting Principles ("UK GAAP) and United States Generally Accepted
 Accounting Principles ("US GAAP")
 
     Acquisition Accounting
     Under UK GAAP, the total consideration, including any contingent
 consideration, has been capitalised by Bookham Technology plc, the ultimate
 parent company.  The excess of the total consideration over the fair value of
 the net assets acquired represents goodwill, and is included in intangible
 assets on the balance sheet.  Under US GAAP, only the consideration paid,
 excluding the contingent consideration, has been capitalised.
 
     National Insurance on stock options
     Under UK GAAP, the company makes provision for UK National Insurance
 liabilities on a straight-line basis over the visiting period of the options
 and as re-measured at each period thereafter until the options have been
 exercised.  Under US GAAP the company recognises the National Insurance
 provision when options are exercised, in accordance with EITF 00-16,
 "Recognition and Measurement of Employer Payroll Taxes and Employee
 Stock-based Compensation".
 
     Cash
     Under UK GAAP cash does not include short-term deposits and investments,
 which cannot be withdrawn without notice and without incurring a penalty.
 Such items are shown as short-term investments.  Under US GAAP, deposits with
 a maturity of less than three months at inception which are convertible into
 known amounts of cash are included as cash and cash equivalents except amounts
 held in collateral accounts as security for outstanding obligations which are
 classified as restricted cash.
     The financial information contained in this announcement does not
 constitute statutory accounts within the meaning of Section 240 of the
 Companies Act 1985.  Statutory accounts of the company in respect of the
 financial year ended 31 December 1999 have been given a report by the
 company's auditors which was unqualified and did not contain a statement under
 Section 237(2) or Section 237(3) of that Act.
 
 

SOURCE Bookham Technology plc
    OXFORDSHIRE, England, April 25 /PRNewswire/ --
 Bookham Technology plc (Nasdaq:   BKHM) (LSE: BHM), a leading supplier of
 silicon integrated optical components for fibre-optic communication networks,
 today announced results for the first quarter ended April 1, 2001.
 
     Financial Highlights
     * Revenues were 11.6 million British pounds sterling (pounds)
       ($16.5 million) compared to 11.5 million pounds ($16.3 million) in the
       previous quarter and up 362% from the comparable quarter in 2000.
 
     * During the quarter gross margins from on-going operations continued to
       improve.  However, a charge of 0.6 million pounds ($0.9 million) was
       taken as a provision for excess stock resulting from the lack of
       short-term visibility in sales.  In addition, a charge of
       1 million pounds ($1.4 million) was made as a result of the company's
       previously announced voluntary workforce reduction programme.
 
     * Gross margin, before the above adjustments, was near breakeven at
       approximately -1% as expected.
 
     * Sales of the company's Dense Wavelength Division Multiplexing (DWDM)
       products increased from 33% to 38% of total revenues, with access
       products representing the remaining 62%.
 
     * The company's largest customer this quarter was Nortel representing 36%
       of sales.  Other major customers were Marconi Communications, at 27% of
       sales, and Fujitsu Telecommunications Europe, at 14% of sales, both
       increasing from the previous quarter and demonstrating further
       diversification of the company's customer base.
 
     * Net loss under UK GAAP was 11.7 million pounds ($16.6 million) compared
       to 8.5 million pounds ($12.1 million) in the previous quarter, which
       included a 3 million pound ($4.3 million) credit relating to National
       Insurance charges on share options.
 
     * Under US GAAP, net loss was 12.4 million pounds ($17.6 million) compared
       to 11.5 million pounds ($16.3 million) in the previous quarter.
 
     * Cash balances at the end of the quarter amounted to 238 million pounds
       ($338 million) after capital investment of 23.3 million pounds
       ($33.1 million).
 
     Commenting on the first quarter results, Giorgio Anania, President and
 Chief Executive Officer, said:
     "Despite the current difficult economic environment, we continue to
 increase our momentum in customer activity toward securing further DWDM design
 wins.  Our ASOC technology continues to provide distinct competitive
 advantages for optical integration as demonstrated with our new metro node
 solution at the recent Optical Fibre Conference in March.  At this conference
 our target customers confirmed their strong and increasing level of interest
 in Bookham's current and future product platforms.
     "We have achieved ambitious targets in cutting overall costs this quarter
 and will continue to be cost-conscious throughout this period of volatility.
 Our cash balance remains strong, which allows us to continue to invest in
 research and development.  We believe this will enable us to accelerate new
 product development to position the company for strong growth in the future."
 
     Operating Review
 
     Products and Technology
     Revenues from all four DWDM products contributed to sales as the company
 shipped components to a wider set of customers.  The company's newest product,
 the Mux-VOA, introduced in the last quarter, is already generating
 considerable commercial interest and is receiving favourable feedback on its
 performance from customer evaluations.
     The ASOC platform continues to demonstrate its unique capabilities for
 integration, providing an economical solution for applications in the DWDM
 metropolitan market area.  At the Optical Fibre Conference (OFC), in March the
 company made a working demonstration of an optical metro solution on a single
 silicon chip -- an ASOC Optical Add/Drop Multiplexer.
 
     Organisation
     As a result of a reorganisation and voluntary workforce reduction
 programme, the total headcount decreased by 17% during the quarter from
 978 to 812.  The company has continued to strengthen its management and
 operational team, which is complemented by a very focused research and
 development effort.
 
     Acquisitions and Investments
     As previously announced, the company acquired Measurement Microsystems in
 Canada, as well as all assets and the lease on its North American Headquarters
 facility in Columbia, Maryland.  These acquisitions closed in January and
 February 2001, respectively.
     The company has quickly integrated product development with Measurement
 Microsystems and joint demonstrations at OFC were well received by customers.
 The company expects these developments to result in commercial products
 in 2002.
 
     Outlook
     The optical equipment market has become less predictable, leading the
 company and its customers to institute a very cost-conscious approach.  The
 market slow down across the company's customer base is affecting
 decision-making processes and, as a result, the company is experiencing a
 reduction in demand and order deferrals.  Over time, the company believes that
 this pressure may cause the optical system vendors to consider more
 cost-effective integrated component solutions, which play to the strengths of
 our ASOC technology.
 
     Financial Commentary
     All US dollar numbers have been translated at $1.42 = 1 pound for the
 convenience of the reader.
 
     First Quarter ended April 1, 2001
     Revenue for the first quarter ended April 1, 2001 was 11.6 million pounds
 ($16.5 million), representing an increase of 1% over the previous quarter and
 an increase of 362% on the comparable quarter in 2000.
     Sales of the company's DWDM product range represented 38% of total
 revenues.  Access products (transceivers and mini-DIL transmitters and
 receivers) represented 62% of revenues during the quarter.  Nortel accounted
 for 36% of revenues during the quarter, compared to 51% in the previous
 quarter.  Other significant customers in this quarter include Marconi
 Communications, representing 27% of revenues, and Fujitsu Telecommunications
 Europe, representing 14% of revenues.
     Gross margins improved during the quarter.  A charge of 1 million pounds
 ($1.4 million) relating to 139 voluntary separations in manufacturing, was
 made to cost of sales during the quarter.  Due to poor short-term visibility
 in sales, excess stocks generated a further specific provision of 0.6 million
 pounds ($0.9 million).  Without these adjustments, gross margins for the
 quarter were approximately -1%.  With these adjustments gross margins were
 -15%.
     Under UK GAAP, research and development (R&D) costs incurred during the
 first quarter 2001 were 10.3 million pounds ($14.6 million).  This includes
 costs of 0.4 million pounds ($0.6 million) relating to the development of the
 company's new US facility in Maryland.  The cost also includes a 0.5 million
 pound ($0.7 million) provision for the voluntary workforce reduction programme
 and a 0.6 million pound ($0.9 million) amortisation charge in respect to
 goodwill on acquiring Measurement Microsystems.  The balance of
 8.8 million pound ($12.5 million) represents an increase of 16% over the
 previous quarter and reflects the company's commitment to new product
 development.
     Under US GAAP, R&D costs incurred during the first quarter 2001 were
 10.2 million pounds ($14.5 million), lower than UK GAAP by 0.1 million pounds
 ($0.1 million) due to a lower charge for amortisation of goodwill on a US GAAP
 basis.
     Under US GAAP, selling, general and administrative costs in the first
 quarter were 3.9 million pounds ($5.5 million) a reduction of 13% from the
 fourth quarter 2000, after deduction for the write-offs in the fourth quarter
 relating to acquisitions.  This figure reflects the company's efforts and
 focus on cost control.
     Under UK GAAP, the company's cash balance at the end of the first quarter
 stands at approximately 238 million pounds ($338 million) and net interest
 income was over 3.6 million pounds ($5.1 million).  During the quarter the
 company's cash balance decreased by 27.1 million pounds ($38.5 million).  This
 comprised of 6.8 million pounds ($9.7 million) to fund the cash portion of the
 acquisition of Measurement Microsystems, 16.5 million pounds ($23.4 million)
 for capital expenditure purchases and the remainder to fund working capital
 and operating losses.
     During the quarter the acquisition of Measurement Microsystems was
 completed.  The accounting treatment of the acquisition differs between UK and
 US GAAP as explained in the notes to the financial statements.
     Under UK GAAP, the current estimate of total consideration is 26 million
 pounds ($37 million).  The initial payment is 6.8 million pounds
 ($9.7 million) in cash and 19.2 million pounds ($27.3 million) in shares of
 Bookham Technology, of which 703,000 shares, valued at 2.2 million pounds
 ($3.1 million), will be issued in the future if performance milestones are
 achieved.
     Under US GAAP the contingent consideration of 2.2 million pounds
 ($3.1 million) is not recorded until the performance milestones have been
 achieved.
     The resulting goodwill is 23.6 million pounds ($33.5 million) and
 20.7 million pounds ($29.4 million) under UK and US GAAP respectively, which
 are both being amortised over seven years.  The company is currently assessing
 the value of any IPR&D acquired.
     Under UK GAAP, the potential future cost of National Insurance on
 unexercised options continues to be recognised as the options vest.
 Principally due to a decrease in the market price of the company's shares the
 provision for National Insurance liability under UK GAAP reduced by
 0.7 million pounds ($1 million) this quarter to 0.2 million pounds
 ($0.3 million).
     Before exceptional items, the net loss for the quarter under UK GAAP was
 10.1 million pounds ($14.3 million) compared to 8.5 million pounds
 ($12.1 million) for the previous quarter and 6.1 million pounds ($8.7 million)
 in the same quarter in 2000.  After exceptional items, the net loss for the
 quarter under UK GAAP was 11.7 million pounds ($16.6 million).
     Under US GAAP, before separation charges, the net loss for the quarter was
 10.8 million pounds ($15.3 million), compared to 11.5 million pounds
 ($16.3 million) for the previous quarter and 5.5 million pounds ($7.8 million)
 in the same quarter last year.  After separation charges, the net loss for the
 quarter was 12.4 million pounds ($17.6 million).
 
     The company will be hosting a conference call on to discuss this set of
 results on Wednesday April 25, 2001 at 13:30 GMT, 08:30 EST.  Dial in numbers
 are as follows:
     UK/European participants     +44-20-8240-8243
     US Participants              +1-303-267-1007
 
     A taped recording will be available approximately 1 hour after the call
 ends for 5 days.  Dial in numbers are as follows:
 
     UK/European participants     +44-20-8288-4459
                                  (access code: 6000572)
     US Participants              +1-303-804-1855
                                  (access code: 998348)
 
     The company's Annual General Meeting takes place on Thursday, April 26,
 2001 at 10:00 GMT and will be held at The Oxford Centre, 333 Banbury Road,
 Oxford, UK.
 
     Bookham Technology (LSE: BHM; Nasdaq:   BKHM) designs, manufactures and
 markets components that integrate optical processing functions on a single
 silicon chip using high volume production methods.  Using patented
 silicon-based ASOC technology, the company's products generate, detect, route
 and control light signals, allowing communications network providers to build
 systems with advanced optical processing capabilities to help meet the growing
 demands of Internet traffic.  The company, whose securities are traded on
 Nasdaq and the London Stock Exchange, is headquartered in the UK, with
 facilities in the US, France and Japan, and employs approximately 800 people
 world-wide.
     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 press release that are not historical facts
 include forward-looking statements that involve risks and uncertainties.
 Important factors that could cause actual results to differ from those
 indicated by such forward-looking statements include, among others, the need
 to manage manufacturing capacity, production equipment and personnel to
 anticipated levels of demand for products, the related impact on margins,
 acceptance of our ASOC product line, reductions in demand for optical
 components, expansion of our business operations, quarterly variations in
 results, manufacturing capacity yields and inventory, intellectual property
 issues and other uncertainties that are discussed in the "Risk Factors"
 section of our Registration Statement on Form F-1 dated September 19, 2000
 which is on file with the Securities and Exchange Commission, and our Annual
 Report and 20-F to be filed in May 2001 with the Securities and Exchange
 Commission and of our listing particulars dated March 27, 2000 filed with the
 United Kingdom Listing Authority and the Registrar of Companies in England and
 Wales.  Forward-looking statements represent our estimates as of today, and
 should not be relied upon as representing our estimates as of any subsequent
 date.  While we may elect to update forward-looking statements in the future,
 we disclaim any obligation to do so.
 
 
                               Bookham Technology plc
                    Consolidated Profit and Loss Account for the
                     First Quarter Ended 1 April 2001 - UK GAAP
 
                             Before                      After
                        Exceptional   Exceptional  Exceptional      Quarter
                              Items         Items(1)     Items        Ended
                            1 April       1 April      1 April      2 April
                               2001          2001         2001         2000
                          Unaudited     Unaudited    Unaudited    Unaudited
                           000's of      000's of     000's of     000's of
                             pounds        pounds       pounds       pounds
 
     Turnover                11,611            --       11,611        2,514
     Cost of sales          (12,284)       (1,036)     (13,320)      (3,930)
     Gross loss                (673)       (1,036)      (1,709)      (1,416)
     Administrative expenses
         Research and
          development        (9,772)         (524)     (10,296)      (2,241)
         National Insurance
          on stock options      627            --          627         (413)
         Other               (3,895)         (114)      (4,009)      (2,060)
                            (13,040)         (638)     (13,678)      (4,714)
     Other operating income      16            --           16           --
     Operating loss         (13,697)       (1,674)     (15,371)      (6,130)
     Interest, net            3,635            --        3,635           77
     Loss on ordinary
      activities before
      taxation              (10,062)       (1,674)     (11,736)      (6,053)
     Tax on loss on ordinary
      activities                 --            --           --           --
     Loss for the financial
      period                (10,062)       (1,674)     (11,736)      (6,053)
 
     Loss per ordinary share (basic and diluted)
     After National Insurance
      on stock options     GBP(0.08)     GBP(0.01)    GBP(0.09)    GBP(0.06)
     Before National Insurance
      on stock options     GBP(0.08)     GBP(0.01)    GBP(0.10)    GBP(0.06)
 
     Weighted average ordinary shares
      Outstanding ('000)    127,760       127,760      127,760       97,221
 
     (1) Exceptional costs arose as a result of the redundancy of 190 employees
         at our manufacturing facilities in Swindon, UK and at our UK
         headquarters in Abingdon.
 
     Statement of Total Recognised Gains and Losses
 
                                               Quarter ended
                                                1 April 2001   2 April 2000
                                                   Unaudited      Unaudited
                                                    000's of       000's of
                                                      pounds         pounds
 
     Loss for the financial period                   (11,736)        (6,053)
     Exchange difference on translation
      of foreign subsidiaries                             --              2
     Total loss recognised in the year               (11,736)        (6,051)
 
 
                             Bookham Technology plc
                      Consolidated Balance Sheet - UK GAAP
 
                                1 April 2001    2 April 2000   31 Dec 2000
                                   Unaudited       Unaudited       Audited
                                    000's of        000's of      000's of
                                      pounds          pounds        pounds
 
     Intangible fixed assets          27,521              --           447
     Tangible assets                  51,738          12,837        44,264
 
     Stocks                            7,682           1,757         6,961
     Debtors                          12,371           4,902        13,239
     Short-term investments            1,521          11,805         1,525
     Cash at bank and in hand        237,996           3,896       265,083
                                     259,570          22,360       286,808
     Creditors: amounts falling
      due within one year            (24,949)         (8,988)      (25,572)
     Net current assets              234,621          13,372       261,236
 
     Total assets less current
      liabilities                    313,880          26,209       305,947
     Creditors: amounts falling due
      after more than one year          (651)         (1,926)         (897)
     Provisions for liabilities
      and charges                       (241)         (1,326)         (988)
 
     Net assets                      312,988          22,957       304,062
 
     Capital and reserves
     Called up capital                   428          12,801           424
     Share premium account           322,643           7,816       321,388
     Other reserve                    22,232             728         2,829
     Profit and loss account         (32,315)          1,612       (20,579)
 
     Equity shareholders' funds      312,988          22,957       304,062
 
 
                             Bookham Technology plc
                    Consolidated Cash Flow Statement for the
                   First Quarter Ended 1 April 2001 - UK GAAP
 
                                           Quarter ended         Year ended
                                     1 April         2 April        31 Dec
                                        2001            2000          2000
                                   Unaudited       Unaudited       Audited
                                000's pounds    000's pounds  000's pounds
 
     Net cash outflow from
      operating activities            (7,941)         (5,231)      (38,167)
 
     Returns on investments and
      servicing of finance             3,685             127         9,770
 
     Capital expenditure and
      financial investment           (16,548)         (2,466)      (28,735)
 
     Acquisition                      (6,796)             --            --
 
     Management of liquid resources        4          (4,590)        5,690
 
     Financing                           509          12,117       312,591
 
     (Decrease)/Increase in cash     (27,087)            (43)      261,149
 
 
                             Bookham Technology plc
                 Consolidated Statement of Operations - US GAAP
 
                                                  Quarter ended
                                     1 April         2 April       1 April
                                        2001            2000        2001(1)
                                   Unaudited       Unaudited     Unaudited
                                000's pounds    000's pounds         $'000
 
     Net revenues:
      Product                         11,611           2,420        16,488
      Development contracts               --              94            --
                                      11,611           2,514        16,488
     Costs and expenses:
      Cost of net revenues
       Product (2)                    13,320           3,875        18,916
       Development contracts              --              55            --
     Research and development (2)     10,242           2,241        14,544
     Selling, general and
      Administrative (2)               3,896           2,034         5,530
     National Insurance on
      stock options                      121              --           172
     Stock-based compensation            116             133           165
     Total costs and expenses         27,695           8,338        39,327
     Operating loss (2)              (16,084)         (5,824)      (22,839)
      Other income                     3,654             185         5,188
     Loss before income taxes        (12,430)         (5,639)      (17,651)
      Cumulative effect of change
       In accounting policy               --             174            --
 
     Net loss (2)                    (12,430)         (5,465)      (17,651)
 
     Net loss per ordinary share
      and ADS (basic and diluted):(2)
       After National Insurance
        on stock options            GBP(0.10)       GBP(0.06)     GBP(0.14)
     Before National Insurance
      on stock options              GBP(0.10)       GBP(0.06)     GBP(0.14)
     Weighted average ordinary shares
      and ADSs outstanding ('000)    127,760          97,221       127,760
 
     (1) Translated solely for the convenience of the reader at the rate of
         $1.42 = 1 pound
 
     (2) The company recorded charges for voluntary separations of 190
         employees in the first quarter 2001 as follows:
 
 
                                Amount   Redundancy         Amount      Amount
                            including       Charges      excluding   excluding
                              charges                      charges     charges
                         000's pounds  000's pounds   000's pounds       $'000
 
     Cost of net product
      revenue                  13,320         1,036         12,284      17,443
     Research and
      development              10,242           524          9,718      13,800
     Selling, general and
      administrative expenses   3,896           114          3,782       5,370
     Operating loss           (16,084)       (1,674)       (14,410)    (20,462)
     Net loss                 (12,430)       (1,674)       (10,756)    (15,274)
 
 
                             Bookham Technology plc
                      Consolidated Balance Sheet - US GAAP
 
                                     1 April          31 Dec       1 April
                                        2001            2000        2001(1)
                                   Unaudited         Audited     Unaudited
                                000's pounds    000's pounds         $'000
     Assets
     Current Assets:
      Cash and cash equivalents      239,067         266,158       339,475
      Restricted cash                    450             450           639
      Accounts receivable             10,219           9,009        14,511
      Inventories                      7,682           6,961        10,908
      Prepaid expenses and other
       current assets                  2,152           4,230         3,056
          Total current assets       259,570         286,808       368,589
     Intangible assets                25,325             447        35,961
     Property and equipment           51,738          44,264        73,468
                                     336,633         331,519       478,018
 
     Liabilities and Shareholders' Equity
     Current liabilities:
      Accounts payable and other
       accrued expenses               24,949          25,572        35,427
          Total current liabilities   24,949          25,572        35,427
     Long-term obligations               651             897           924
     Shareholders' equity            311,033         305,050       441,667
                                     336,633         331,519       478,018
 
     (1) Translated solely for the convenience of the reader at the rate of
         $1.42 = 1 pound
 
 
     The principal differences between the company's accounting policies under
 UK GAAP and those that would have been followed had the financial information
 been prepared under US GAAP are set out below:
 
              UK/US GAAP Reconciliation - Profit and Loss Account
 
                                                          Quarter ended
                                                      1 April        2 April
                                                         2001           2000
                                                    Unaudited      Unaudited
                                                 000's pounds   000's pounds
 
     Loss on ordinary activities before taxation
     under UK GAAP                                    (11,736)        (6,053)
     Amortisation of intangible assets                     54             --
     National Insurance on stock options                 (748)           588
 
     Loss before income taxes under US GAAP           (12,430)        (5,465)
 
 
                   UK/US GAAP Reconciliation - Balance Sheet
 
                                                      1 April         31 Dec
                                                         2001           2000
                                                    Unaudited        Audited
                                                  000's pounds    000's pounds
 
     Cash under UK GAAP                               237,996        265,083
     Short term investments                             1,521          1,525
     Cash and cash equivalents and
      restricted cash under US GAAP                   239,517        266,608
 
     Intangible assets under UK GAAP                   27,521            447
     Accumulated amortisation of intangibles               54             --
     Contingent consideration                          (2,250)            --
     Intangible assets under US GAAP                   25,325            447
 
     Shareholders' funds under UK GAAP                312,988        304,062
     Acquisition accounting differences                (2,196)            --
     National Insurance liability difference              241            988
     Shareholders' funds under US GAAP                311,033        305,050
 
     Summary of significant differences between UK Generally Accepted
 Accounting Principles ("UK GAAP) and United States Generally Accepted
 Accounting Principles ("US GAAP")
 
     Acquisition Accounting
     Under UK GAAP, the total consideration, including any contingent
 consideration, has been capitalised by Bookham Technology plc, the ultimate
 parent company.  The excess of the total consideration over the fair value of
 the net assets acquired represents goodwill, and is included in intangible
 assets on the balance sheet.  Under US GAAP, only the consideration paid,
 excluding the contingent consideration, has been capitalised.
 
     National Insurance on stock options
     Under UK GAAP, the company makes provision for UK National Insurance
 liabilities on a straight-line basis over the visiting period of the options
 and as re-measured at each period thereafter until the options have been
 exercised.  Under US GAAP the company recognises the National Insurance
 provision when options are exercised, in accordance with EITF 00-16,
 "Recognition and Measurement of Employer Payroll Taxes and Employee
 Stock-based Compensation".
 
     Cash
     Under UK GAAP cash does not include short-term deposits and investments,
 which cannot be withdrawn without notice and without incurring a penalty.
 Such items are shown as short-term investments.  Under US GAAP, deposits with
 a maturity of less than three months at inception which are convertible into
 known amounts of cash are included as cash and cash equivalents except amounts
 held in collateral accounts as security for outstanding obligations which are
 classified as restricted cash.
     The financial information contained in this announcement does not
 constitute statutory accounts within the meaning of Section 240 of the
 Companies Act 1985.  Statutory accounts of the company in respect of the
 financial year ended 31 December 1999 have been given a report by the
 company's auditors which was unqualified and did not contain a statement under
 Section 237(2) or Section 237(3) of that Act.
 
 SOURCE  Bookham Technology plc