JDS Uniphase Corp.
), the leading provider of communications test and measurement
solutions, declared that it has completed the sale of its
holographic security business to OpSec Security Inc. The deal,
which was announced on September 19 this year, marks an exit of
JDSU from the holographic security business as the company intends
to concentrate on its core businesses.
The holographic security product line primarily addresses the
transaction card market segment and generated revenues of
approximately $5.0 million per quarter for JDSU. As part of the
deal, 75 employees of JDSU, who are associated with the Hologram
business will be transferred to OpSec Security Inc. However, the
financial terms of the deal were not disclosed by either of the
Apart from serving the communication industry, JDSU is
emphasizing on serving the anti-counterfeiting market primarily
through advanced security pigments, thread substrates and printed
features for the currency, pharmaceutical and consumer electronic
segments. Management believes exiting the holographic business will
allow it to focus on innovating and developing new products for the
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 divesture of the holographic business will allow the company
to focus more on its Wireless backhaul services and Long Term
Evolution (LTE) test solutions to the telecom carriers.
We maintain our long-term Neutral recommendation on JDS Uniphase
Corp. The company also retains a Zacks #3 Rank, implying a
short-term Hold rating.
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