Bookham reveals £14m loss

DWINDLING sales, mounting losses and the prospect of more restructuring charges at fallen star Bookham Technology today sent its shares crashing through three-month lows.

Sales at the former FTSE 100 index member fell 82% from a year earlier to only £2.1m in the fourth quarter to 31 December, while operating losses rose 66% to £14.1m in what Bookham described as a 'very challenging' market.

A further £29.2m in charges related to goodwill write-offs and obsolete equipment took pre-tax losses in the quarter to £43.3m, versus £63.2m a year earlier.

Bookham's shares, which peaked at £53 two years ago, fell 5p to 135p. The company will incur further charges as this quarter it will integrate the recently acquired optical parts unit from Marconi, while cuts are expected among the combined 943-strong workforce.

The acquisition will increase cash burn to close on £20m this quarter, but should double sales to about £4m.

Bookham's cash pile stands at £185m.Chief financial officer Steve Abely said the company was fully funded for two years, but that the market for the parts it makes is unlikely to recover properly until 2003.