JDS Uniphase Consolidates Manufacturing Operations
April 20 2005 - 5:30PM
PR Newswire (US)
JDS Uniphase Consolidates Manufacturing Operations SAN JOSE,
Calif., April 20 /PRNewswire-FirstCall/ -- JDS Uniphase Corporation
(Nasdaq: JDSU; TSX: JDU) today announced a key milestone in its
transformative business strategy to achieve profitability and
increase corporate agility by reducing cost structure and
eliminating non-core products. Specifically, the Company will: --
Consolidate its Ewing, New Jersey and Melbourne, Florida
manufacturing to its Shenzhen, China facility and to the facilities
of two contract manufacturing partners -- Transfer its Ewing and
Mountain Lakes, New Jersey manufacturing facilities to Fabrinet, a
key manufacturing partner -- Reduce manufacturing in Santa Rosa,
California associated with the phasing out of certain display
products including high-volume consumer light engines and coated
micro display windows. "These initiatives are part of a
multi-quarter business transformation strategy for JDS Uniphase to
achieve profitability by reducing cost structure and improving
corporate agility," said President and CEO Kevin Kennedy. "We
firmly believe that our ability to restructure major operations and
rationalize our current portfolio, while investing in
next-generation products, positions JDS Uniphase for success and
differentiates us from the competition." The facility transfers to
Fabrinet are expected to be completed by the end of the current
quarter, ending June 30, 2005, while the remaining actions are
expected to be completed by the end of the second quarter of fiscal
2006, ending December 31, 2005. Today's actions will result in the
significant consolidation of the Company's North American
manufacturing operations. Specifically, the Company expects that by
the end of the calendar year, manufacturing positions will be
reduced by more than 15 percent (approximately 700 people plus 150
people in support positions). Research and development will
continue at all sites, except Mountain Lakes. The Company
separately confirmed that it expects to achieve the previously
provided financial guidance for the Third Quarter of fiscal 2005,
which forecasted that revenue would be in the range of $155 to $165
million, and non-GAAP loss per share would be approximately two
cents. Further details will be discussed during the JDS Uniphase
Third Quarter Results conference call on Wednesday, April 27, 2005,
at 2:00 p.m. Pacific Time. For more information, please visit:
http://www.jdsu.com/investors. Forward-Looking Statements This
press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. These statements
include: (i) any participation or guidance as to its financial
performance for the Third Quarter 2005, including expected revenue
levels and non-GAAP earnings per share projections; and (ii) the
Company's expectations regarding the occurrence or timing of
completion of any of the restructuring and other actions and
activities described in this press release, and employees reduced
by such actions. These forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially
from those projected, including, without limitation, the following:
(i) the possibility of Final Quarter end closing adjustment related
to the Company's Third Quarter financial results; and (ii)
customary documentation and closing conditions related to the
transfers to Fabrinet and other contract manufacturing partners.
For more information on these and other risks affecting the
Company's business, please refer to the "Risk Factors" section
included in the Company's Quarterly Report on Form 10-Q for the
quarter ended December 31, 2004, filed with the Securities and
Exchange Commission, as well as in subsequent filings on Forms 10-Q
and 10-K. About JDS Uniphase JDS Uniphase Corporation designs and
manufactures products for markets where its core optics
technologies provide innovative solutions for communications,
commercial and consumer applications. The Company offers
components, modules and subsystems for data communications,
telecommunications and cable television, display, security,
medical/environmental instrumentation, decorative, aerospace and
defense applications. More information is available at
http://www.jdsu.com/. Investor Inquiries: Investor Relations
408-546-4445. DATASOURCE: JDS Uniphase Corporation CONTACT: media,
Randall Sutherland, +1-408-546-7028, or , or Investor Relations,
+1-408-546-4445, or , both of JDS Uniphase Corporation Web site:
http://www.jdsu.com/
Copyright