Yesterday, after the closing bell,
JDS Uniphase Corp.
) declared strong financial results for the second quarter of
fiscal 2014. Both the top and the bottom line outpaced the
respective Zacks Consensus Estimate.
Moreover, management provided a solid revenue outlook for the
ensuing third quarter of fiscal 2014. As a result, in the
aftermarket trade on Nasdaq, the stock price of JDS Uniphase was
up by 58 cents (4.56%) to $13.30.
Quarterly net revenue was $447.6 million, up 4.2% year over
year and also above the Zacks Consensus Estimate of $434 million.
On a GAAP basis, quarterly net income from continuing operations
was $8.8 million or 4 cents per share compared with $3.3 million
or 2 cents per share in the year-ago quarter. However, quarterly
adjusted earnings per share of 12 cents were well above the Zacks
Consensus Estimate of 9 cents.
Adjusted gross margin, in the reported quarter, was 48.5%
compared with 48% in the year-ago quarter. Operating expenses
were $185.1 million, up 6.3% year over year. Adjusted operating
margin was 11% compared with 11.4% in the year-ago quarter.
Quarterly adjusted EBITDA was $67 million as against $65.9
million in the year-ago quarter.
JDS Uniphase generated $54.4 million of cash from operations
in the reported quarter. At the end of the second quarter of
fiscal 2014, JDS Uniphase had $1,065.4 million of cash &
marketable securities and $524.2 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 second quarter of fiscal 2014, the Network and Service
Enablement segment generated $195 million of revenues, down 0.4%
year over year. The Communications and Commercial Optical
Products segment generated $198 million, up 6.6% year over year.
Within this segment, Optical Communications revenues came in at
$174.5 million, up 12.1% year over year and Commercial Lasers
business revenues stood at $23.5 million, down 22.2% year over
year. The Optical Security and Performance segment generated the
remaining $54.6 million revenues, up 13.3% year over year.
In the second quarter of fiscal 2014, the Americas segment
accounted for 47.8% of the total revenue, the EMEA segment
generated 23.4% and the remaining 28.8% came from the
Future Financial Outlook
For the third quarter of fiscal 2014, management expects the
company's revenues to be within the range of $420-$440 million.
JDS Uniphase expects strong demand from the upcoming 4G LTE
network deployment in China. Additionally, the company is
expecting demand to rise for 10-Gbps and 40-Gbps systems for data
center and cloud computing network.
Other Stocks to Consider
JDS Uniphase currently has a Zacks Rank #3 (Hold). Other
better-ranked stocks in the Communications Component
manufacturing industry include
Premiere Global Services Inc.
). While Envivio currently carries a Zacks Rank #1 (Strong Buy),
both Harmonic and Premiere have a Zacks Rank #2 (Buy).
ENVIVIO INC (ENVI): Free Stock Analysis
HARMONIC INC (HLIT): Free Stock Analysis
JDS UNIPHASE CP (JDSU): Free Stock Analysis
PREMIERE GLOBAL (PGI): Free Stock Analysis
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