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5 February 2007


JDSU’s five-year high in revenues exceeds preliminary estimate, driving return to profit

For its fiscal second-quarter 2007 (to end-December 2006), JDSU of Milpitas, CA, USA has reported final revenue of $366.3m (up 15% on $318.1m the prior quarter and up 2% on $312.9m a year ago). This exceeds its preliminary revenue estimate of $360-365m reported as recently as mid-January, and significantly exceeds early November’s guidance of $332-352m. Revenues by region were: Americas, 57%; Europe, 27%; and Asia-Pacific, 16%.

Benefiting from seasonal strength associated with customer spending patterns and improved execution relative to the previous quarter, revenue for JDSU’s Communications Test and Measurement segment grew sequentially by 44%, more than offset a 4% decline in the Optical Communications segment associated with customer supply chain and inventory rationalization.

Revenues and operating profits/losses by segment were as follows:

  • Communications Test and Measurement, $168.2m (46% of total revenue), up 15% on a year ago and 44% on last quarter (increasing profits from $26.5m a year ago to 35.8m).
  • Optical Communications, $132.7m (36% of total revenue), down 4% on last quarter but up 21% on a year ago (cutting losses from $10.2m to $0.1m). 
  • Advanced Optical Technologies, $40.4m (11% of total revenue), up 3% on last quarter but down 2% on a year ago (increasing profits from $9.4m to $12.7m). 
  • ‘All Other’ (including the Commercial Lasers business), $25.1m (7% of total revenue), up 4% on last quarter and 39% on a year ago (improving from a loss of $0.8m a year ago to a profit of $2.2m).  

Net income was $23.2m, compared to a loss of $17.4m the prior quarter and $42.1m a year ago. Gross margin was 37.4% of revenue. Cash reserves at the end of December were $1,227.7m. 

“During the second quarter, JDSU delivered the strongest revenue, gross margin, and net income results in more than five years,” said CEO Kevin Kennedy.  “Positive earnings per share results show marked improvement from previous quarters, highlighting the impact of our strategy to diversify our business and return to profitability, while continuing to deliver highly innovative products to market,” he adds.

Coming off a seasonally strong fiscal Q2, JDSU expects lower revenue for its fiscal Q3/2007 (to end-March) of $333-353m (compared to $312.9m a year ago).

See related items:

JDSU's revenue exceeds guidance, driven by Communications Test and Measurement

JDSU's optical communications business turns operating profit