JDS Uniphase: Fiber Not Lit Up Enough

JDS Uniphase (JDSU-NASDAQ) just reported earnings: non-GAAP EPS was $0.06 (but was -$0.07 on GAAP) on revenues of $361.7 million; versus estimates of $0.10 and $346.5 million.  The company’s guidance for revenues to come in between $325 to $345 million compared to First Call estimates of $354.5M.  The company did at least generate positive cash flow.

Americas’ customers represented 54% of net revenue. European and Asia- Pacific customers represented 27% and 19% of net revenue.  Here is the unit break-down:  Communications Test and Measurement non-GAAP net revenue of $162.9 million was down 3% from last quarter, and up 28% from the same quarter a year ago. This segment represented 45% of total revenue.  Optical Communications non-GAAP net revenue of $128.7 million was down 3% from last quarter, and up 1% from the same quarter a year ago, representing 36% of total net revenue.  Advanced Optical Technologies non-GAAP net revenue of $45.6 million was up 13% from last quarter, and up 12% from the same quarter a year ago. This segment represented 12% of total net revenue.

The problem with playing JDS Uniphase ahead of earnings is that it has a scattered history, and if you have been trading long enough you will know that comment is the understatement of the year.  Options traders were only prepared for this stock to move $0.55 to $0.70 in either direction.

Shares closed up 2.5% at $16.64 in regular trading and the 52-week trading range adjusted for its reverse split is $13.93 to $29.28.  If all the numbers are accurate, it looks like JDSU is still having a hard time with street expectations.  Shares are down over 4% to under $16.00 in after-hours trading.

Jon C. Ogg
May 2, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.