Bookham predicted to share in high-tech gloom

A slowdown in the global economy is expected to dent Bookham Technology's interim results.

The group has suffered from a slump in demand for its optical transmitters and receivers, which are mainly sold to Nortel Networks.

When Bookham released its fourth quarter figures for 2000 in February, it indicated that it expected this trend to continue - resulting in slower growth throughout this year.

The Oxfordshire-based company is not expected to show a significant improvement on its fourth quarter results, which saw revenues up by 49% from £7.7m in the previous quarter to £11.5m.

This represented an increase of 454% compared with the same quarter in 1999.

Last month, Bookham axed 150 staff in response to a scaling down in production, a move calculated to help the company break even by the end of the year.

However, the group announced in February that it expected continued growth in its optical fibre transceiver division.

Andrew Fisher, of Gerrard stockbrokers, said: "Bookham's first quarter figures are likely to reflect the ongoing difficulties of the optical components market.

"The key will be the management's outlook statement and, particularly, confirmation of its optimism for the Dense Wavelength Division Multiplexing products."