Yesterday, after market close,
JDS Uniphase Corp.
) declared disappointing financial results for the third quarter of
fiscal 2012. Both the company's top- and bottom-line fell below the
Zacks Consensus Estimates. Consequently, in the after market trade
on NASDAQ, stock price of JDS Uniphase was down by 54 cents (4.49%)
Optical Networking component sector is highly competitive. The
company competes fiercely with several players, such as
Oplink Communications Inc.
), to name a few. JDS Uniphase cited delay in carrier order and
volatile global macro-economy as the primary reasons for this weak
Quarterly net revenue was $409.2 million, down 10.1% year over
year, and well below the Zacks Consensus Estimate of $420 million.
On a GAAP basis, quarterly net loss was $17.4 million or a loss of
8 cents per share compared with a net income of $38.6 million or 16
cents per share in the year-ago quarter. However, quarterly
adjusted (excluding special items) EPS was 5 cents, missing the
Zacks Consensus Estimate of 7 cents.
Gross margin in the reported quarter was 45.5% compared with
47.6% in the year-ago quarter. In the third quarter, operating
expenses were $177.3 million, down 5.2% from the prior-year
quarter. However, quarterly operating loss was $7.6 million
compared with an operating income of $12.6 million in the
prior-year quarter. Total segment operating income in the
previous quarter was $29.9 million compared with $55 million in the
At the end of the third quarter of fiscal 2012, JDS Uniphase had
$718.5 million of cash & marketable securities and $300.8
million of outstanding debt on its balance sheet compared with
$695.7 million of cash & marketable securities and $285.8
million of outstanding debt on its balance sheet at the end of
fiscal 2011. At the end of the reported quarter,
debt-to-capitalization ratio was 0.22 compared with 0.21 at the end
of fiscal 2011. JDS Uniphase generated $13.2 million of cash from
operations in the third quarter of fiscal 2012.
In the third quarter of fiscal 2012, Communications Test and
Measurement segment accounted for $177.8 million of revenue, down
6% year over year. Communications and Commercial Optical Products
segment generated $173.1 million, down 17.3% year over year. Within
this segment, Optical Communications revenue was $143.2 million,
down 22.5% from the prior-year quarter and Commercial Lasers
business revenue was $29.9 million, up 21.1% from the prior-year
quarter. Advanced Optical Technologies segment generated the
remaining $58.3 million revenue, up 2.6% year over year.
In the third quarter of fiscal 2012, the Americas segment
accounted for 47% of total revenue, the EMEA segment generated 25%,
and the rest 28% came from the Asia-Pacific region.
Future Financial Outlook
For the fourth quarter of fiscal 2012, management expects the
company's non-GAAP revenue to be within the range of $415 million -
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