& cplSiteName &

Capex Slowdown Slams JDSU

Ray Le Maistre
5/1/2014
50%
50%

JDSU had an uncomfortable Thursday as it watched its stock lose 16% of its value after it reported less-than-stellar fiscal third-quarter earnings and provided guidance for its final fiscal quarter that fell way below Wall Street's expectations.

The optical components and test systems vendor reported revenues of $418 million and net income after one-time costs (non-GAAP) of $0.10 per share for the quarter ending March 29, below what was expected, with JDSU blaming "later-than-expected carrier orders." The slowdown was particularly hurtful in the US. (See JDSU Reports Fiscal Q3.)

But it was the forecast of fiscal fourth quarter revenues of $425 to $445 million and non-GAAP earnings per share of $0.10 to $0.14 that prompted the sale of JDSU (Nasdaq: JDSU; Toronto: JDU) stock, as analysts had been expecting $459.1 million and non-GAAP earnings of $0.17.

JDSU's share price sank by 16% to $10.65 in mid-afternoon trading.

Things should improve during the second half of this calendar year, though, according to JDSU. Financial analysts are expecting a bump in revenues to come from China as the major operators there build out their transport and radio access networks to usher in mass-market 4G. (See China Mobile Dishes Out 100G Deals and China Holds Key to LTE TDD.)

"We continue to believe that JDSU is likely to benefit from strong demand for optical components and test equipment as China builds out their 4G network," stated James Kisner at Jefferies & Company Inc. in a research note issued Thursday.

"Management noted that China should offer upside in the second half of 2014, driven by both 4G/LTE testing equipment and 100G components as China Mobile ramps its coverage projects," added Simon M. Leopold in a Raymond James Financial Inc. (NYSE: RJF) analysis, but he noted that the expected additional revenues of up to $15 million per quarter appeared "uninspiring."

— Ray Le Maistre, Editor-in-Chief, Light Reading Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Vishnu Goel
50%
50%
Vishnu Goel,
User Rank: Light Sabre
5/11/2014 | 3:15:15 AM
High Time Companies derisk and diversify in Asia!
Everytime a company in Asia shows a soft quarter or two,the guns are trained on the slow demand in the Middle Republic,we need to have mature and equally aggressive sales managers and business leaders who understand and practice diversity in business.Asia is not only China and there is enough cushion in Asia to take this slowdown in stride! Vishnu Goel T&M +919810101238
Featured Video
From The Founder
The 'gleaming city on a hill,' Steve Saunders calls it. But who is going to take us from today's NFV componentry to the grand future of a self-driving network? Here's a look at the vendors hoping to make it happen.
Flash Poll
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 2, 2017, 8 Northumberland Avenue – London
November 10, 2017, The Westin Times Square, New York, NY
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Could 5G Have Found Its Glass Ceiling?
Dan Jones, Mobile Editor, 9/20/2017
1 Million Pirate Set-Top Boxes Sold in the UK
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 9/20/2017
Comcast Shuts Down OTT Again
Mari Silbey, Senior Editor, Cable/Video, 9/19/2017
Photo Highlights: Operations Transformation Forum 2017
Ray Le Maistre, International Group Editor, 9/17/2017
WiCipedia: Endangered Species, 'the Pao Effect' & Bad Actors
Eryn Leavens, Special Features & Copy Editor, 9/22/2017
Animals with Phones
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.

Like Us on Facebook
Twitter Feed