Bookham Comments on Nortel Bankruptcy Protection Announcement
January 15 2009 - 10:45PM
PR Newswire (US)
SAN JOSE, Calif., Jan. 15 /PRNewswire-FirstCall/ -- Bookham, Inc.
(NASDAQ:BKHM), a leading provider of optical components, modules
and subsystems, today commented on Nortel Networks Corporation's
(NYSE/TSX: NT) ("Nortel") recently announced bankruptcy protection
filing. On January 14, 2009, Nortel and certain of its Canadian,
European, and United States subsidiaries announced their filing for
protection under the bankruptcy reorganization laws of their
respective countries. Nortel further announced that the filings
will not disrupt its on-going business operations. Nortel also
announced that it has entered into an amendment to arrangements
with its key supplier, Flextronics, and that these amendments give
Nortel confidence that Flextronics will continue to maintain the
supply chain following commencement of these proceedings. Nortel,
directly and through Flextronics, is a key customer of Bookham and
important to its success and growth. On January 14, 2009, Nortel
confirmed to Bookham that business would continue on ordinary terms
during the course of the bankruptcy proceeding. Bookham expects to
sell product to Nortel and to be paid for future shipments on an
on-going basis throughout the course of the bankruptcy and to
maintain its relationship as a key supplier to Nortel. Bookham is
pleased that Nortel has addressed its contract with Flextronics at
the very first stage of its bankruptcy to ensure the viability of
this important component of the Nortel supply chain and the
relationship with Bookham. Bookham has approximately $4.3 million
in open receivables from Nortel as of January 14, 2009, and Bookham
will pursue its rights to be paid these amounts consistent with the
applicable bankruptcy laws. About Bookham Bookham, Inc. is a
leading provider of high performance optical products, spanning
from components to advanced subsystems. The company designs and
manufactures a broad range of solutions tailored for the
telecommunications optical infrastructure and other selected
markets, including industrial, life sciences, semiconductor, and
scientific. The Company utilizes proprietary core technologies and
a vertically integrated manufacturing organization to provide its
customers with cost-effective and innovative devices, as well as
flexible, scalable product delivery. Bookham is a global company,
headquartered in San Jose, Calif., with leading edge chip
fabrication facilities in the U.K. and Switzerland, and
manufacturing sites in the USA and China. Bookham and all other
Bookham, Inc. product names and slogans are trademarks or
registered trademarks of Bookham, Inc. in the USA or other
countries. Safe Harbor Statement Any statements in this
announcement about the future expectations, plans or prospects of
Bookham, including statements containing the words "believe,"
"plan," "anticipate," "expect," "estimate," "will," "should,"
"ongoing," and similar expressions and references including future
revenue and expectations regarding future business with Nortel or
its key suppliers constitute forward- looking statements within the
meaning of The Private Securities Litigation Reform Act of 1995.
There are a number of important factors that could cause actual
results or events to differ materially from those indicated by such
forward-looking statements, including the impact of continued
uncertainty in world financial markets and the resulting reduction
in demand for our products, continued business and sales to Nortel,
receipt of payments from Nortel under existing agreements and
during the pendency of the bankruptcy, decisions by the bankruptcy
court, the lack of availability of credit as well as the factors
described in Bookham's most recent annual report on Form 10-K and
most recent quarterly reports on Form 10-Q. These include continued
demand for optical components, changes in inventory and product
mix, no further degradation in the exchange rate of the United
States dollar relative to U.K., China and Switzerland currencies,
and the continued ability of the Company to maintain requisite
financial resources. The forward-looking statements included in
this announcement represent Bookham's view as of the date of this
release. Bookham anticipates that subsequent events and
developments may cause Bookham's views to change. However, Bookham
disclaims any intention or obligation to update any forward-looking
statements as a result of developments occurring after the date of
this release. Those forward-looking statements should not be relied
upon as representing Bookham's views as of any date subsequent to
the date of this announcement. DATASOURCE: Bookham, Inc. CONTACT:
Jim Fanucchi of Summit IR Group Inc., +1-408-404-5400, , for
Bookham, Inc. Web site: http://www.bookham.com/
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