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JDS Uniphase 1Q Loss Widens But Results Top Views; Shares Up



DOW JONES NEWSWIRES

JDS Uniphase Corp.'s (JDSU) fiscal first-quarter loss, its seventh in a row, widened amid a steep drop in revenue and slower sales in its communications test and measurement segment.

In after-hours trading, shares climbed 5.4% to $6.40 as the results easily topped Wall Street estimates. The stock is up by two-thirds so far this year through Thursday's close.

Chief Executive Tom Waechter said the results show evidence of improving demand from customers. JDS, like other makers of broadband products, has been hurt as telecom operators slow purchases and pull back information-technology spending. The company is particularly reliant on a handful of clients, including AT&T Inc. (T) and Verizon Communications Inc. (VZ).

For the period ended Oct. 3, JDS's loss widened to $31.9 million, or 15 cents a share, from a year-earlier loss of $21.3 million, or 10 cents a share. Excluding restructuring, investment and other charges, earnings fell to 4 cents a share from 11 cents. Analysts polled by Thomson Reuters were looking for a profit of 2 cents.

Net revenue fell 21% to $297.8 million, near the high end of the company's August forecast for revenue of $283 million to $300 million.

Gross margin edged up to 39.5% from 39.4%.

Revenue in the communications test and measurement segment, which makes up almost half of the company's sales, dropped 11% to $143.4 million.

Looking ahead, JDS projected fiscal second-quarter adjusted revenue of $320 million to $345 million. Wall Street was looking for revenue of $306 million.

-By Lauren Pollock, Dow Jones Newswires; 212-416-2356; lauren.pollock@ dowjones.com


  (END) Dow Jones Newswires
  11-05-091645ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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