JDS Uniphase Corp.
) completed the acquisition of South Korea-based GenComm for an
undisclosed amount. JDSU declared its intention to acquire GenComm,
the wireless test and measurement solution provider, on August 14,
JDSU, through its Communication Test and Measurement segment,
provides instruments, service-assurance systems, and services to
help original equipment manufacturers like GenComm to design,
deploy, and maintain communication equipment and networks. These
services are being used by wireless service providers, cable
operators and contract manufacturers around the world to improve
the services for their users.
Recently, JDS Uniphase posted solid financial results for the
fourth quarter of fiscal 2012. Both the company's net revenue of
$439.3 million and adjusted EPS of 10 cents surpassed Zacks
We believe Milpitas-based JDSU is acquiring GenComm to gain
leverage from its wireless expertise, as well as its innovative new
technologies to support 2G, 3G and LTE networks. The acquisition
will further help the company to attain a foothold in the fast
growing Asia-Pacific region.
This is the second acquisition of the company in less than a
year after it acquired Vancouver-based Dyaptive Systems in January.
The company is increasing its presence in the Communication Test
and Measurement segment as it faces stiff competition in the
Optical Networking component sector from the likes of
Oplink Communications Inc.
The current Zacks Consensus Estimate for JDS Uniphase Corp. is
pegged at 9 cents for the first quarter of fiscal 2013. For fiscal
2013 and 2014, the Zacks Consensus Estimates stand at 66 cents and
89 cents, respectively, with a growth rate of 106.25% and
We are maintaining our long-term Neutral recommendation on JDS
Uniphase Corp. Currently, it has a Zacks #4 Rank, implying a
short-term Sell rating on the stock.
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