(JDSU) JDS Uniphase Misses First Quarter Earnings

Yesterday, after the closing bell, JDS Uniphase Corp. (JDSU) declared disappointing financial results for the third quarter of fiscal 2013, missing both the top and bottom line of the Zacks Consensus Estimate. Management cited lower-than-expected capital expenditure by telecom carriers is the primary reason for this poor performance.

Quarterly net revenues were $405.3 million, up 0.5% year over year but below the Zacks Consensus Estimate of $418 million. On a GAAP basis, quarterly net loss from continuing operations was $28 million or a loss of 12 cents per share compared with a net loss of $16.2 million or 7 cents per share in the year-ago quarter. However, quarterly adjusted (excluding special items) earnings per share were 4 cents, missing the Zacks Consensus Estimate of 6 cents.

Adjusted gross margin in the reported quarter was 45.9% compared with 45.6% in the year-ago quarter. In the reported quarter, operating expenses were $176.6 million, down 1.4% year over year. Quarterly adjusted operating margin was 6.8% compared with 7.2% in the year-ago quarter. Quarterly adjusted EBITDA was $44.6 million compared with $46.8 million in the year-ago quarter.

At the end of the third quarter of fiscal 2013, JDS Uniphase had $608.1 million of cash & marketable securities and $159.6 million of outstanding debt on its balance sheet compared with $921.6 million of cash & marketable securities and $292.8 million of outstanding debt on its balance sheet at the end of fiscal 2012. JDS Uniphase generated $28.2 million of cash from operations in the reported quarter.

Revenue Segments

In the third quarter of fiscal 2013, Communications Test and Measurement segment accounted for $174.2 million of revenues, down 2% year over year. Communications and Commercial Optical Products segment generated $179.2 million, up 3.5% year over year. Within this segment, Optical Communications revenues were $152.9 million, up 6.8% year over year and Commercial Lasers business revenues were $26.3 million, down 12% year over year. Optical Security and Performance segment generated the remaining $51.9 million revenues, down 1% year over year.

Geographic Segments

In the third quarter of fiscal 2013, the Americas segment accounted for 47.9% of the total revenue, the EMEA segment generated 23.5% and the remaining 28.6 % came from the Asia-Pacific region.

Future Financial Outlook

For the fourth quarter of fiscal 2013, management expects the company’s revenues to be within the range of $420 Р$440 million.

Other Stocks to Consider

Currently, JDS Uniphasehas a Zacks Rank #3 (Hold). Other stocks in the industry which are performing well include Corning Inc. (GLW), NICE Systems Ltd. (NICE) and Paltronics Inc. (PLT). While Corning currently has a Zacks Rank #1 (Strong Buy), both NICE and Paltronics carry a Zacks Rank #2 (Buy).
CORNING INC (GLW): Free Stock Analysis Report

JDS UNIPHASE CP (JDSU): Free Stock Analysis Report

NICE SYSTEM-ADR (NICE): Free Stock Analysis Report

PLANTRONICS INC (PLT): Free Stock Analysis Report

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