JDS Uniphase Acquires Trendium - Analyst Blog

By Zacks Equity Research,

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JDS Uniphase Corporation ( JDSU ) recently announced the acquisition of Trendium, a real-time intelligence software solutions supplier for customer experience assurance (CEA), asset expansion and generation of substantial income from mobile operators of 4G/LTE networks. However, financial details of the deal have not been revealed by the company.

The takeover of Trendium will assist JDS Uniphase in gathering and studying information about its networks in a much faster and simpler manner. The technological expertise gained from this acquisition has also helped the company to get a $10 million contract from a small mobile operator. Recently, JDS Uniphase also acquired privately held Network Instruments, a global developer of enterprise network and application-performance management solutions.

The Trendium and Network Instruments buyouts are expected to strengthen the foothold of JDS Uniphase in the enterprise, data center and cloud networking segments. At the end of the second quarter of fiscal 2014, JDS Uniphase had $1,065.4 million worth of cash & marketable securities. The company has made a number of acquisitions in the past one year.

Notably, the company reported strong second-quarter fiscal 2014 results. Both the top and the bottom line outpaced the respective Zacks Consensus Estimate. Moreover, management provided a robust revenue outlook for the ensuing third quarter of fiscal 2014 on the back of strong demand from the upcoming 4G LTE network deployment in China.

Other Stocks to Consider

JDS Uniphase currently has a Zacks Rank #3 (Hold). Other better-ranked stocks in the Communications Component manufacturing industry include Envivio, Inc. ( ENVI ), Premiere Global Services, Inc. ( PGI ) and Oplink Communications, Inc. ( OPLK ). All these stocks carry a Zacks Rank #2 (Buy).

JDS UNIPHASE CP (JDSU): Free Stock Analysis Report

OPLINK COMMNCTN (OPLK): Free Stock Analysis Report

PREMIERE GLOBAL (PGI): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: CEA , ENVI , JDSU , OPLK , PGI

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