Yesterday, after the closing bell,
JDS Uniphase Corp.
) declared mixed financial results for the first quarter of
fiscal 2014. While net income met the Zacks Consensus Estimate,
total revenue surpassed the same. However, management provided a
disappointing revenue outlook for the ensuing second quarter of
fiscal 2014. As a result, in the aftermarket trade on Nasdaq, the
stock price of JDS Uniphase was down by $1.17 (7.93%) to
Quarterly net revenues were $429 million, up 1.9% year over
year and also above the Zacks Consensus Estimate of $424 million.
On a GAAP basis, quarterly net income from continuing operations
was $0.3 million or a breakeven per share compared with a net
loss of $9.8 million or 4 cents per share in the year-ago
quarter. However, quarterly adjusted earnings per share of 7
cents were exactly in line with the Zacks Consensus Estimate.
Adjusted gross margin, in the reported quarter, was 46.3%
compared with 45.8% in the year-ago quarter. Operating expenses
were $178.6 million, up 3.5% year over year. Adjusted operating
margin was 8.3% compared with 9.2% in the year-ago quarter.
Quarterly adjusted EBITDA was $53.2 million as against $55.6
million in the year-ago quarter. Overall book-to-bill ratio was
JDS Uniphase generated $29.5 million of cash from operations
in the reported quarter. At the end of the first quarter of
fiscal 2014, JDS Uniphase had $1,057.1 million of cash &
marketable securities and $518.2 million of outstanding debt on
its balance sheet compared with $486.2 million of cash &
marketable securities and no outstanding debt at the end of
fiscal 2013. The debt-to-capitalization ratio was 0.30 at the end
of the reported quarter.
In the first quarter of fiscal 2014, the Network and Service
Enablement segment accounted for $171.9 million of revenues, up
1.4% year over year. The Communications and Commercial Optical
Products segment generated $204.6 million, up 5% year over year.
Within this segment, Optical Communications revenues were $176.2
million, up 8.1% year over year and Commercial Lasers business
revenues were $28.4 million, down 11% year over year. The Optical
Security and Performance segment generated the remaining $52.5
million revenues, down 7.1% year over year.
In the first quarter of fiscal 2014, the Americas segment
accounted for 46.4% of the total revenue, the EMEA segment
generated 24.3% and the remaining 29.3% came from the
Future Financial Outlook
For the second quarter of fiscal 2014, management expects the
company's revenues to be within the range of $420-$440 million.
Its mid-point of $430 million is significantly below the current
Zacks Consensus Estimate of $459 million.
Other Stocks to Consider
JDS Uniphase currently has a Zacks Rank #3 (Hold). Other
stocks in the Communications Component manufacturing industry
that are performing well include
). While EXFO currently carries a Zacks Rank #1 (Strong Buy),
both ClearOne and Envivio have a Zacks Rank #2 (Buy).
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JDS UNIPHASE CP (JDSU): Free Stock Analysis
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