Alcatel cuts Kymata jobs

17 Jun 2002

French optical components maker announces poor results and job cuts in the UK, France and US.

Alcatel Optronics' sales for the third quarter were down year-on-year by 24% to USD 95 million, while income from operations has suffered a USD 10 million loss. In response to these poor results, Alcatel has announced a range of cost-cutting measures.

The company plans to cut 90 jobs at its site in Livingston, UK. These losses represent nearly half the workforce at the site which until last month was owned by start-up company Kymata. Alcatel Optronics also plans to cut 70 jobs in North America and by the end of December 2001, the company's total workforce will total fewer than 2,000 employees.

Staff at its Lannion and Nozay sites in France have also been offered early retirement and part-time employment.

"Third quarter was characterized by a steep drop in our revenues. Our 'breakeven barrier' was crossed and our margins therefore adversely impacted," said Jean-Christophe Giroux, CEO of Alcatel Optronics. "Nearing the end of the year, we can now say with some degree of confidence that for the full year 2001 we should see mid, single-digit top line growth."

UK-based integrated optical components manufacturer Bookham Technology has announced poor results, but no plans to cut more staff. Recent restructuring efforts have significantly reduced the company's expense base and reduced its headcount by 38%. Revenues in the third quarter 2001 were USD 3.6 million, down 69% year-on-year. Fujitsu Denso and NEC became 10% customers, representing 45% and 18% of revenue respectively. Nortel Networks accounted for 27% of revenue. The net loss for the third quarter 2001 was USD 20.2 million and loss per share was USD 0.16.