11 May 2010


JDSU grows 15% quarter-to-quarter in Optical Communications

For its fiscal third-quarter 2010 (ended 3 April), JDSU has reported revenue of $332.9m, down 3% on $343.8m last quarter but up 19% on $279.2m a year ago.

The Americas represented 45% of revenue (down from 50% last quarter), Europe 29% (up from 28%) and Asia-Pacific 26% (up from 22%).

Advanced Optical Technologies revenue was $58.6m (17% of total revenue), up 7% on last quarter's $54.6m and 15% on $51m a year ago. Communications Test & Measurement revenue was $145.7m (44% of total revenue), down 18% on last quarter's $177m (51% of total revenue) but up 14% on $127.7m a year ago.

Communications & Commercial Optical Products (CCOP) revenue was $128.6m (39% of total revenue), up 14% on last quarter’s $112m (33% of total revenue) and up 28% on $100.5m a year ago. In particular, Commercial Lasers revenue was $18.7m (up 12% on last quarter’s $16.7m and up 63% on $11.5m a year ago), while Optical Communications revenue was $109.9m (up 15% on last quarter’s $95.6m and up 23% on $89m a year ago).

"We began the calendar year with the highest quarterly bookings JDSU has reported in the last two years, with each of our businesses achieving a book to bill of greater than one," says president & CEO Tom Waechter.

On a non-GAAP basis, although up from 41.8% a year ago, gross margin has fallen from 44.6% last quarter to 44.1%.

Although cut from $204.2m a year ago , o perating expenses have grown from $125.3m last quarter to $142.5m. Hence, despite improving from a loss of $6.4m a year ago (-2.3% of revenue), operating income is down from last quarter’s $28.1m (an operating margin of 8.2% of revenue) to $22.1m (6.6% of revenue). However, this included $12.6m from CCOP, almost quadruple $3.2m last quarter and an improvement from a loss of $6.4m a year ago.

Net income was $23.2m, down from $26.6m last quarter but an improvement from a net loss of $5.4m a year ago.

Free cash flow was $7.9m, helping to boost total cash and investments from $698m to $713.1m.

"The combination of the recovery in our markets, and our innovation and new product offerings are driving the strength of our customer demand,” comments Waechter.

For its fiscal fourth-quarter 2010 (ending 3 July), JDSU expects revenue to grow 16-23% to $385-410m.

See related items:

JDSU’s margin growth focused on new products

JDSU returns to underlying profit

JDSU sees component inventory levels burning off

JDSU consolidating VCSEL fab into San Jose to cut costs

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