Yesterday, after market close,
JDS Uniphase Corp.
) declared solid financial results for the fourth quarter of fiscal
2012. Both the company's top- and bottom-line beats the Zacks
Its Optical Networking component sector is highly competitive,
with several players such as
Oplink Communications Inc.
), to name a few. Despite competitive threats and macro-economic
headwinds, JDS Uniphase's performance in the quarter was quite
Quarterly net revenue was $439.3 million, down 7% year over year
but surpassed the Zacks Consensus Estimate of $423 million. On a
GAAP basis, quarterly net loss was $24.3 million or a loss of 10
cents per share compared with a net income of $9.3 million or 4
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% compared
with 46.7% in the year-ago quarter. In the fourth quarter,
operating expenses were $207.9 million, up 12% from the prior-year
quarter. Quarterly adjusted operating margin was 8.7% compared with
12.3% in the year-ago quarter. Total segment operating income in
the previous quarter was $38.2 million compared with $58.2 million
in the prior-year quarter.
At the end of fiscal 2012, JDS Uniphase had $722.5 million of
cash & marketable securities and $445.5 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.
Debt-to-capitalization ratio at the end of fiscal 2012 was 0.13,
compared with 0.21 at the end of fiscal 2011. JDS Uniphase
generated $38 million of cash from operations in the previous
In the fourth quarter of fiscal 2012, Communications Test and
Measurement segment accounted for $196.2 million of revenue, down
7.1% year over year. Communications and Commercial Optical Products
segment generated $185 million, down 8.6% year over year.
Within this segment, Optical Communications revenue was $155.4
million, down 10.9% from the prior-year quarter and Commercial
Lasers business revenue was $29.6 million, up 6.5% from the
prior-year quarter. Advanced Optical Technologies segment generated
the remaining $58.1 million revenue, consistent with the year over
In the fourth quarter of fiscal 2012, the Americas segment
accounted for 54% of total revenue, the EMEA segment generated 22%,
and the remaining 24% came from the Asia-Pacific region.
Future Financial Outlook
For the first quarter of fiscal 2013, management expects the
company's non-GAAP revenue to be within the range of $415 million -
We maintain our long-term Neutral recommendation on JDS
Uniphase. Currently, it holds a short-term Zacks #4 Rank
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