Epoch Partners Issues Research Note on Bookham Technology plc

Bookham Meets Expectations; Reduces Outlook



Apr 26, 2001, 01:00 ET from Epoch Partners, Inc.

    SAN FRANCISCO, April 26 /PRNewswire/ -- Epoch Partners today announced it
 has issued a Research Note on Bookham Technology plc (Nasdaq:   BKHM). The Note
 is available for free to investors through the Epoch Web site (www.epoch.com).
     The Research Note, issued by Mark Langley, Senior Research Analyst for
 Communications Equipment Subsystems, discusses the current investment thesis
 of Bookham Technology plc. Highlights from the report include the following:
 
     -- Bookham reported fiscal first-quarter 2001 revenues of $16.5 million
        and EPS of ($0.10), slightly lower on the top line and higher on the
        bottom line than our estimates of $16.9 million and ($0.12),
        respectively.
     -- First-quarter results include $2.3 million in inventory write-offs and
        one-time charges that we believe were mostly related to the decline in
        Mini-DIL sales and the company's previously announced voluntary staff
        reduction program.
     -- Sales of Mini-DIL transceivers declined as expected, but were somewhat
        offset by sales of DWDM products, which increased 10% sequentially.
     -- Management now expects 2Q to be slower than expected, with revenue down
        25%-40% sequentially. Due to Bookham's high fixed-cost base, this
        forecast represents a significant decline in gross margins, following
        near-breakeven gross margins this quarter.
     -- Based on a continued conservative outlook regarding customer orders, we
        are reducing our calendar 2001 revenue estimate to $51.2 million from
        $105.4 million and adjusting our calendar 2001 EPS estimate to a loss
        of $0.39 from a loss of $0.42.
 
     Communications Equipment Research Coverage
     Investors can visit Epoch's Web site to read research coverage on the
 following public companies:  Avanex Corporation, Avici Systems, Bookham
 Technology plc, Ceragon Networks, CIENA Corporation, Cisco Systems, Corning
 Incorporated, Corvis Corporation, Endwave Corporation, Finisar Corporation,
 Floware Wireless Systems, Foundry Networks, JDS Uniphase Corporation, Lucent
 Technologies, Netro Corporation, New Focus, Inc., Netro Corporation, Sycamore
 Networks, and UTStarcom, Inc.
     In addition, investors can be added to the Communications Equipment email
 alert system, which alerts investors to new research in the Communications
 Equipment sector. To be added to this alert system visit
 http://pluto.sparklist.com/scripts/lyris.pl?join=epochcommeq .
     Full research coverage on other companies under coverage by Epoch is
 available for free to investors through the Epoch Web site (www.epoch.com).
     Epoch Partners is a technology-enabled investment bank focused on
 high-growth companies and electronically connected institutional and
 individual investors.
 
     The information contained herein is based on sources believed to be
 reliable but is neither all inclusive nor guaranteed by Epoch Partners.
 Opinions, if any, reflect our judgment at this time and are subject to change.
 Epoch Partners does not undertake to advise of changes in its opinion or the
 information. Epoch Partners may perform or seek to perform investment banking
 services for the issuers of securities which are the subject of our Research.
 Most of the companies Epoch Partners follows are emerging growth companies
 whose securities typically involve a higher degree of risk and more volatility
 than the securities of more established companies. The securities discussed in
 the Epoch Partners Research may be unsuitable for investors depending on their
 specific investment objectives and financial situation and needs. No report
 included in the Epoch Partners Research is a recommendation that any
 particular investor should purchase or sell any particular security in any
 amount or at all and is not a solicitation of any offer to purchase or sell
 from or to any particular investor. For additional information that may be
 available on the securities mentioned, please contact Epoch Partners. This
 document has been published in the United States for Residents of the United
 States. Member NASD/SIPC.
 
     Epoch Partners is a member of the National Association of Securities
 Dealers, CRD number 103899.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X78644599
 
 

SOURCE Epoch Partners, Inc.
    SAN FRANCISCO, April 26 /PRNewswire/ -- Epoch Partners today announced it
 has issued a Research Note on Bookham Technology plc (Nasdaq:   BKHM). The Note
 is available for free to investors through the Epoch Web site (www.epoch.com).
     The Research Note, issued by Mark Langley, Senior Research Analyst for
 Communications Equipment Subsystems, discusses the current investment thesis
 of Bookham Technology plc. Highlights from the report include the following:
 
     -- Bookham reported fiscal first-quarter 2001 revenues of $16.5 million
        and EPS of ($0.10), slightly lower on the top line and higher on the
        bottom line than our estimates of $16.9 million and ($0.12),
        respectively.
     -- First-quarter results include $2.3 million in inventory write-offs and
        one-time charges that we believe were mostly related to the decline in
        Mini-DIL sales and the company's previously announced voluntary staff
        reduction program.
     -- Sales of Mini-DIL transceivers declined as expected, but were somewhat
        offset by sales of DWDM products, which increased 10% sequentially.
     -- Management now expects 2Q to be slower than expected, with revenue down
        25%-40% sequentially. Due to Bookham's high fixed-cost base, this
        forecast represents a significant decline in gross margins, following
        near-breakeven gross margins this quarter.
     -- Based on a continued conservative outlook regarding customer orders, we
        are reducing our calendar 2001 revenue estimate to $51.2 million from
        $105.4 million and adjusting our calendar 2001 EPS estimate to a loss
        of $0.39 from a loss of $0.42.
 
     Communications Equipment Research Coverage
     Investors can visit Epoch's Web site to read research coverage on the
 following public companies:  Avanex Corporation, Avici Systems, Bookham
 Technology plc, Ceragon Networks, CIENA Corporation, Cisco Systems, Corning
 Incorporated, Corvis Corporation, Endwave Corporation, Finisar Corporation,
 Floware Wireless Systems, Foundry Networks, JDS Uniphase Corporation, Lucent
 Technologies, Netro Corporation, New Focus, Inc., Netro Corporation, Sycamore
 Networks, and UTStarcom, Inc.
     In addition, investors can be added to the Communications Equipment email
 alert system, which alerts investors to new research in the Communications
 Equipment sector. To be added to this alert system visit
 http://pluto.sparklist.com/scripts/lyris.pl?join=epochcommeq .
     Full research coverage on other companies under coverage by Epoch is
 available for free to investors through the Epoch Web site (www.epoch.com).
     Epoch Partners is a technology-enabled investment bank focused on
 high-growth companies and electronically connected institutional and
 individual investors.
 
     The information contained herein is based on sources believed to be
 reliable but is neither all inclusive nor guaranteed by Epoch Partners.
 Opinions, if any, reflect our judgment at this time and are subject to change.
 Epoch Partners does not undertake to advise of changes in its opinion or the
 information. Epoch Partners may perform or seek to perform investment banking
 services for the issuers of securities which are the subject of our Research.
 Most of the companies Epoch Partners follows are emerging growth companies
 whose securities typically involve a higher degree of risk and more volatility
 than the securities of more established companies. The securities discussed in
 the Epoch Partners Research may be unsuitable for investors depending on their
 specific investment objectives and financial situation and needs. No report
 included in the Epoch Partners Research is a recommendation that any
 particular investor should purchase or sell any particular security in any
 amount or at all and is not a solicitation of any offer to purchase or sell
 from or to any particular investor. For additional information that may be
 available on the securities mentioned, please contact Epoch Partners. This
 document has been published in the United States for Residents of the United
 States. Member NASD/SIPC.
 
     Epoch Partners is a member of the National Association of Securities
 Dealers, CRD number 103899.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X78644599
 
 SOURCE  Epoch Partners, Inc.