JDS Uniphase Beats Estimates

Zacks

Yesterday, after the closing bell, JDS Uniphase Corp. (JDSU) declared better financial results for the second quarter of fiscal 2013 beating both the top and bottom lines of the Zacks Consensus Estimates.

Quarterly net revenue was $429.4 million, up 4.9% year over year and also above the Zacks Consensus Estimate of $425 million. On a GAAP basis, quarterly net income from continuing operations was $3.3 million or a profit of 2 cents per share compared to a net loss of $7.7 million or 3 cents per share in the year-ago quarter. However, quarterly adjusted (excluding special items) earnings per share were 12 cents above the Zacks Consensus Estimate by 2 cents.

Adjusted gross margin in the reported quarter was 44.1% compared with 42.6% in the year-ago quarter. In the reported quarter, operating expenses were $174.1 million, down 0.3% from the prior-year quarter. Quarterly adjusted operating margin was 11.3% compared with 9.8% in the year-ago quarter. Total segment operating income in the reported quarter was $49 million against $40 million in the prior-year quarter.

At the end of the second quarter of fiscal 2013, JDS Uniphase had $709.9 million of cash & marketable securities and zero debt on its balance sheet compared with $921.6 million of cash & marketable securities and no outstanding debt on its balance sheet at the end of fiscal 2012. JDS Uniphase generated $59.4 million of cash from operations in the previous quarter.

Revenue Segments

In the second quarter of fiscal 2013, Communications Test and Measurement segment accounted for $195.4 million of revenue, down 0.4% year over year. Communications and Commercial Optical Products segment generated $185.5 million, up 13.8% year over year. Within this segment, Optical Communications revenue was $155.6 million, up 12.7% from the prior-year quarter and Commercial Lasers business revenue was $30.2 million, up 20.3% from the prior-year quarter. Optical Security and Performance segment generated the remaining $48.2 million revenue, representing an annualized decline of 4%.

Geographic Segments

In the second quarter of fiscal 2013, the Americas segment accounted for 49.9% of the total revenue, the EMEA segment generated 23.8% and the remaining 26.3% came from the Asia-Pacific region.

Financial Outlook

For the third quarter of fiscal 2013, management expects the company’s non-GAAP revenue to be within the range of $405-$425 million.

Currently, JDS Uniphasehas a Zacks Rank #2 (Buy).

Certain other companies belonging to the same industry are Finisar Corp. (FNSR), Oplink Communications Inc. (OPLK), and Oclaro Inc. (OCLR). While Finisar is set to release its financial results on Mar 4, both Oplink Communications and Oclaro Inc. declared second-quarter 2013 results, yesterday.

Read the Full Research Report on OPLK

Read the Full Research Report on JDSU

Read the Full Research Report on OCLR

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