Soggy Quarter at Bookham

The optical-networking stock drops 11% late Thursday.
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Bookham (BKHM) missed on the fiscal third quarter as its loss widened.

The San Jose, Calif., optical networking-parts maker posted an adjusted net loss of $46 million, or 34 cents a share, on sales of $53 million for the quarter ended April 1. Those numbers compare with a pro forma loss of $10 million, or 19 cents a share, on $60.7 million in revenue in the prior quarter ended in December.

Analysts were looking for a pro forma net loss of 20 cents on sales of $52.7 million, according to Reuters Research.

The company blamed the hefty loss on surprisingly high costs related to the shutdown of its Paignton, U.K., factory and lower production in the quarter.

"We are implementing a focused recovery plan, which will involve a number of company-wide cost reduction measures designed to lower our overhead spending by $5 million to $6 million per quarter by the December quarter of this year," CEO Giorgio Anania said in a press release Thursday.

Looking ahead to the current quarter, the company expects sales of $53.5 million in the fourth quarter. Bookham says its gross margin should shrink to about 8% from 11% in the most recent quarter.

News of Bookham's setback hit other players in the optical-component sector in late trading.



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jumped a nickel to $5.37.

Bookham shares rose 18 cents during regular trading, but they fell 73 cents, or 11%, to $5.55 in the after-hours session.