Skip to main content



shares got slammed as the company reveals that its auditors have some "going concern" issues.

The San Jose, Calif., optical networking parts maker said its accountants Ernst & Young issued an audit report Sept. 11 that included "an explanatory paragraph regarding the company's ability to continue as a going concern."

TheStreet Recommends

In the company's annual report filed a week ago, the company says it would need to raise at least $10 million to continue operating if its lenders cut off its credit. Bookham's low cash balance and continued losses for the foreseeable future and any inability to tap its $25 million credit line would require the company to raise more cash.

The news comes as Bookham announced Thursday that it sold its assembly and testing facility in Paignton, U.K., for $9.5 million. The company did not name the buyer.

"With this latest transaction we will have raised approximately $41 million from the recent private placement of common stock and the sale of our Paignton facility," CEO Giorgio Anania said in a press release Thursday.

Bookham shares dropped 4% in premarket trading.