JDS Uniphase Misses Top-line – Analyst Blog

Yesterday, after market close, JDS Uniphase Corp. (JDSU) declared its third quarter fiscal 2010 financial results. Quarterly net revenue was $33.23 million, falls below the Zacks Consensus Estimate of $340 million. However, third quarter revenue was an improvement of 19% year-over-year. As a result, in the aftermarket trade at NASDAQ, stock price of JDS Uniphase was down $1.11 (8.1%) to $12.59.

On a GAAP basis, quarterly net loss was $11.9 million or a loss of 5 cents per share compared to a net loss of $101.7 million (including a goodwill impairment charge of $45 million) or a loss of 47 cents per share in the year-ago quarter. However, quarterly adjusted (excluding special items) EPS was 5 cents, a penny ahead of the Zacks Consensus Estimate of 4 cents.

Gross margin, in the reported quarter was 44.1% compared to 41.8% in the year-ago quarter. In the same quarter, operating expenses were $142.5 million, down 30% from the prior-year quarter. This was the reason behind third quarter of fiscal 2010 adjusted EPS surpassing the Zacks Consensus Estimate.

At the end of the third quarter of fiscal 2010, JDS Uniphase had $686.6 million of cash & marketable securities and $262.9 million of outstanding debt on its balance sheet compared to $700.3 million of cash & marketable securities and $251.1 million of outstanding debt at the end of fiscal 2009. JDS Uniphase generated $7.9 million of positive free cash (cash flow from operations less capital expenditures) in the reported quarter.

In the third quarter of fiscal 2010, Communications Test and Measurement segment accounted for $145.7 million of revenue, up 14% year-over-year. Communications and Commercial Optical Products segment accounted for $128.6 million of revenue, up 28% year-over-year. Within this segment, Optical Communications revenue was $109.9 million, up 23% from the prior-year quarter and Commercial Lasers business revenue was $18.7 million, up 63% from the prior-year quarter. Advanced Optical Technologies segment generated the rest $58.6 million revenue, up 15% year-over-year.

In the third quarter of fiscal 2010, the Americas segment accounted for 45% of the total revenue, the European segment accounted for 29%, and the rest 26% was generated from the Asia-Pacific region.

For the fourth quarter of fiscal 2010, management expects the company’s non-GAAP revenue to be within the range of $385 million – $410 million.