DOW JONES NEWSWIRES
JDS Uniphase Corp. (JDSU) swung to a fiscal second-quarter loss
on a $691.6 million goodwill write-down amid slumping sales as the
company also projected fiscal third-quarter revenue far below
analysts' estimates.
The fiber-optic equipment company forecast revenue this quarter
of $275 million to $300 million. Analysts polled by Thomson Reuters
expected, on average, revenue of $357.9 million.
Shares fell 5.1% to $3.90 in after-hours trading as revenue in
the latest period also fell short of expectations. The stock is
down more than 60% over the past six months.
JDS, like other makers of broadband products, is being hit hard
as telecom operators slow purchases and pull back on
information-technology spending. The company is particularly
reliant on just a handful of clients, including AT&T Inc. (T)
and Verizon Communications Inc. (VZ).
For the quarter ended Dec. 27, JDS reported a net loss of $705.3
million, or $3.28 cents a share, compared with year-earlier net
income of $21.2 million, or 9 cents a share. Excluding items
including the write-down, disclosed last month, earnings slid to 11
cents from 22 cents.
Revenue fell 11% to $357 million, missing the company's October
forecast of $360 million to $390 million, which was below analysts'
estimates at the time.
Analysts most recently expected earnings of 10 cents on $371.6
million in revenue. JDS's results have now come in below Wall
Street estimates for the past three quarters.
Gross margin fell to 38.3% from 42.9% amid the sales
decline.
The company's optical-communication segment, which is involved
in telecom and cable television, saw revenue fall 16%. The smaller
advanced optical technologies group, which makes decorative light
products, thin film coatings and document authentication products,
jumped 6.6%.
-By Melissa Korn and Lauren Pollock, Dow Jones Newswires;
201-938-5964; lauren.pollock@dowjones.com