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23 August 2007


JDSU grows 16% year-on-year, despite transitions at optical communications customers hitting last quarter

For its fiscal 2007 (to ended-June), fiber-optic module and laser maker JDSU of Milpitas, CA, USA has reported revenue of $1.4bn, up 16% on fiscal 2006’s $1.2bn, with growth in each operating business segment: 9% in optical communications; 25% in communications test and measurement; 4% in advanced optical technologies; and 19% in commercial lasers and others. Net loss was cut from $151.2m to just $26.3m. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) grew from $17.2m to $72.9m.

However, for its fiscal fourth-quarter, revenue of $350.7m fell 3% from $361.7m the previous quarter (despite being up 10% on $318.2m a year ago).

Of total revenues, 32% came from Optical Communications, down 12% to $112.7m (despite including VCSEL manufacturer Picolight Inc of Louisville, CO, USA, acquired during the quarter - the lower demand was due to customer initiatives including product platform transitions, changes in supply chain, lean manufacturing, and demand pauses related to consolidation activity); 49% came from Communications Test and Measurement (up 5% to $171.3m, including Innocor, acquired during the quarter); 13% came from Advanced Optical Technologies ($44.7m, down slightly from $45.6m); and 6% came from Commercial Lasers ($22.1m, down 10%).

Nevertheless, on a non-GAAP basis, net income grew from $12.3m last quarter to $15.0m in fiscal Q4. “For the first time in more than five years, JDSU was non-GAAP EPS [earnings per share] positive for all four quarters of the year,” says CEO Kevin Kennedy. “Moving into 2008, we will continue to focus on execution across the company, gross margins, and advancing our business model.” In particular, JDSU is particularly optimistic about growth prospects for VCSEL from Picolight, as well as long-term growth for commercial lasers, enabling JDSU to diversify its laser technology from its traditional core application of telecoms.

So, despite fiscal Q4/2007’s dip in optical communications sales, for fiscal first-quarter 2008 (to end-September), JDSU expects overall revenue to hold steady at $345-360m.

See related items:

JDSU doubles power of its 808nm lasers for non-telecom applications

Inventory reduction programs continue to “hurt” Bookham

JDSU completes acquisition of Picolight

JDSU’s fiber revenues flat amid forecast of decline