BKHM » Topics » We have a history of large operating losses and we expect to generate losses in the future unless we achieve further cost reductions and revenue increases.

This excerpt taken from the BKHM 10-K filed Aug 31, 2007.
We have a history of large operating losses and we expect to generate losses in the future unless we achieve further cost reductions and revenue increases.
 
We have never been profitable. We have incurred losses and negative cash flow from operations since our inception. As of June 30, 2007, we had an accumulated deficit of $1,036.7 million.
 
Our net loss for the year ended June 30, 2007 was $82.2 million. Our net loss for the year ended July 1, 2006 was $87.5 million, which included an $18.8 million loss on conversion of convertible debt and early extinguishment of debt, and an aggregate of $11.2 million of restructuring charges, partially offset by an $11.7 million tax gain. For the year ended July 2, 2005, our net loss was $248 million, which included goodwill and intangibles impairment charges of $114.2 million and restructuring charges of $20.9 million.
 
Even though we generated positive gross margins in each of the past ten fiscal quarters, we have a history of negative gross margins. We may not be able to maintain positive gross margins due to, among other things, new product transitions, changing product mix or semiconductor facility under-utilization, or if we do not continue to reduce our costs, improve our product mix and generate sufficient revenues from new and existing customers to offset the revenues we lost as a result of the expiration of minimum purchase requirements under the supply agreement with Nortel Networks.


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Table of Contents

This excerpt taken from the BKHM 10-K filed Sep 14, 2006.
We have a history of large operating losses and we expect to generate losses in the future unless we achieve further cost reductions and revenue increases.
 
We have never been profitable. We have incurred losses and negative cash flow from operations since our inception. As of July 1, 2006, we had an accumulated deficit of $954 million.
 
Our net loss for the year ended July 1, 2006 was $87.5 million, which included an $18.8 million loss on conversion of convertible debt and early extinguishment of debt, a $11.7 million tax gain, and an aggregate of $11.2 million of restructuring charges. For the year ended July 2, 2005 our net loss was $248 million, which included goodwill and intangibles impairment charges of $114.2 million and restructuring charges of $20.9 million.
 
Even though we generated positive gross margins in each of the past five fiscal quarters, we have a history of negative gross margins. In the quarter ended April 1, 2006, we experienced a decrease in margins when compared with the prior fiscal quarter, which is the result of a shift to lower margin products as we transition to new products, underutilization of our semiconductor facility located in Caswell, U.K. as a result of the changing product mix, and costs associated with the shutdown of certain production lines in our Paignton assembly and test facility. We may not be able to maintain positive gross margins if we do not address these issues, continue to reduce our costs, improve our product mix and generate sufficient revenues from new and existing customers to offset the revenues we will lose after Nortel Networks completes its “last-time-buy” purchases and its other purchases pursuant to the supply agreement, as amended.
 

EXCERPTS ON THIS PAGE:

10-K
Aug 31, 2007
10-K
Sep 14, 2006
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