Yesterday, after the closing bell,
JDS Uniphase Corp.
(
JDSU
) declared mixed financial results for the first quarter of
fiscal 2013. Optical Networking component sector is highly
competitive. The company competes fiercely with several players
like
Finisar Corp.
(
FNSR
),
Oplink Communications Inc.
(
OPLK
), and
Oclaro Inc.
(
OCLR
), to name a few. JDS Uniphase suffered primarily due to the
competitive threats from its rivals and ongoing macro-economic
headwinds.
Quarterly net revenue was $420.9 million, up 1.2% year over
year but fell below the Zacks Consensus Estimate of $426 million.
On a GAAP basis, quarterly net loss from continuing operations
was $9.8 million or a loss of 4 cents per share compared with a
net loss of $3.6 million or 2 cents per share in the year-ago
quarter. However, quarterly adjusted (excluding special items)
earnings per share were 10 cents, a penny above the Zacks
Consensus Estimate.
Adjusted gross margin in the reported quarter was 45.8%
compared with 47.6% in the year-ago quarter. In the reported
quarter, operating expenses were $172.5 million, down 2.1% from
the prior-year quarter. Quarterly adjusted operating margin was
9.2% compared with 11.2% in the year-ago quarter. Total segment
operating income in the previous quarter was $38.7 million
against $46.4 million in the prior-year quarter.
At the end of the first quarter of fiscal 2013, JDS Uniphase
had $698.8 million of cash & marketable securities and $249.9
million of outstanding debt on its balance sheet compared with
$722.5 million of cash & marketable securities and $445.5
million of outstanding debt on its balance sheet at the end of
fiscal 2012. JDS Uniphase generated $43.1 million of cash from
operations in the previous quarter.
Revenue Segments
In the first quarter of fiscal 2013, Communications Test and
Measurement segment accounted for $169.5 million of revenue, down
8.5% year over year. Communications and Commercial Optical
Products segment generated $194.9 million, up 8.1% year over
year. Within this segment, Optical Communications revenue was
$163 million, up 8.6% from the prior-year quarter and Commercial
Lasers business revenue was $31.9 million, up 5.6% from the
prior-year quarter. Optical Security and Performance segment
generated the remaining $56.5 million revenue, representing an
annualized growth of 11.7%.
Geographic Segments
In the first quarter of fiscal 2013, the Americas segment
accounted for 50% of total revenue, the EMEA segment generated
23% and the remaining 27% came from the Asia-Pacific region.
Future Financial Outlook
For the second quarter of fiscal 2013, management expects the
company's non-GAAP revenue to be within the range of $410 - $430
million.
Recommendation
We maintain our long-term Neutral recommendation on JDS
Uniphase. Currently, it holds a short-term Zacks #3 Rank (Hold)
on the stock.
FINISAR CORP (FNSR): Free Stock Analysis
Report
JDS UNIPHASE CP (JDSU): Free Stock Analysis
Report
OCLARO INC (OCLR): Free Stock Analysis Report
OPLINK COMMNCTN (OPLK): Free Stock Analysis
Report
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