Yesterday, after the closing bell,
JDS Uniphase Corp.
) 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
Oplink Communications Inc.
), to name a few. JDS Uniphase suffered primarily due to the
competitive threats from its rivals and ongoing macro-economic
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
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.
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%.
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
We maintain our long-term Neutral recommendation on JDS
Uniphase. Currently, it holds a short-term Zacks #3 Rank (Hold)
on the stock.
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