Fibre-optic cable maker Bookham Technology increased revenues in the July to September quarter despite "difficult" market conditions.

The improvement was helped by its acquisition last December of Marconi's optical components business.

Bookham also said that fourth quarter revenues would be boosted by the businesses it has recently bought from Nortel Networks.

But it said it was planning to shut down one of the Nortel plants, in a move which could lead to 200 job losses.

Revenues up, cash burn down

In the July to September period, Bookham reported revenues of �7.6m, which was a 6% rise on the previous quarter and a 217% jump on the same period last year.

The main reason for the huge increase was the purchase of the Marconi business, which now generates nearly 60% of revenues.

Pre-tax net loss before one-off items was �13.5m, down slightly from a �13.6m loss in the same quarter last year.

But allowing for restructuring charges, which included the closure of some plants, pre-tax losses increased to �22m.

Bookham reduced the rate at which it is spending its cash reserves, with cash burn cut to �11.8m from �13.7m in the previous quarter.

"The third-quarter was a good quarter, with revenues up and cash burn down, notwithstanding the difficult market environment," said president and chief executive Giorgio Anania.

Nortel deal

Earlier this month Bookham said it was to buy two businesses from the Canadian tech giant Nortel Networks, in a deal which would see Nortel take a 30% stake in Bookham.

Following the deal, Bookham says revenues in the current October to December quarter should be about 50% higher than the previous quarter.

But the move is set to lead to the closure of at least one plant.

"We will be closing one of the fabs (wafer fabrication plants). If we do close a fab, that type of closure would affect just under 200 (employees)," said Mr Anania.

Bookham Technology was one of the stars of the tech boom, and at the height of its popularity its shares were worth �53.02 in July 2000.

But as the tech bubble burst, its share price tumbled. On Tuesday, its shares were trading 5.75p lower on the day at 71p.