Light Reading

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
Vishnu Goel
50%
50%
Vishnu Goel,
User Rank: Light Beer
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
Flash Poll
From The Founder
The New IP is actually bigger even than business. Like another hugely important tech that Light Reading is digging into right now, the New IP has the potential to change the world by fundamentally advancing what it is possible for people to achieve with communications.
LRTV Huawei Video Resource Center
The Power of Five Convergences in OceanStor OS

3|4|15   |   6:24   |   (0) comments


OceanStor OS is Huawei's brand-new storage operating system. While inheriting the consistent high stability, reliability and performance from the company's previous storage products, OceanStor OS abounds in new converged storage features. Specifically, the new storage operating system achieves "five convergences" to lift storage convergence to a higher level.
LRTV Huawei Video Resource Center
4K Brings Extreme Video Experience

3|4|15   |   8:10   |   (0) comments


4K video is a hot topic in the video industry. It will certainly bring an extreme video experience to end users. At the same time, however, it will also pose a big challenge to operators. Check out this Huawei 4K experts' discussion about how operators can achieve success in 4K video service.
LRTV Interviews
DT's Virtualization Vision for Europe

3|4|15   |   10:23   |   (0) comments


Light Reading CEO Steve Saunders talks virtualization, cloudification and standards with Deutsche Telekom's Axel Clauberg at Mobile World Congress.
LRTV Custom TV
ZTE's Wireline at MWC 2015

3|4|15   |   6:35   |   (0) comments


Light Reading speaks with Jane Chen, ZTE's Senior VP of Wireline Business, about innovations in her product line at Mobile World Congress.
LRTV Custom TV
ZTE at MWC 2015

3|4|15   |   4:24   |   (0) comments


Dr. Dick Chen of ZTE USA gives Light Reading an overview of what's new at ZTE's pavilion at Mobile World Congress 2015.
LRTV Interviews
Ericsson CEO Talks Telco Data Center Tech

3|4|15   |   05:45   |   (0) comments


At Mobile World Congress, Ericsson CEO Hans Vestberg discusses telco data center technology, business models, small cells and more.
Between the CEOs
EXCLUSIVE: Cisco's Chambers on Reinvention

3|3|15   |   8:24   |   (1) comment


Light Reading CEO Steve Saunders talks transformation and virtualization – including Light Reading's independent testing of the vendor's virtualization solutions – with Cisco CEO John Chambers at Mobile World Congress in Barcelona.
LRTV Documentaries
The Three Cs of MWC15

3|2|15   |   2:33   |   (1) comment


My visit to this year's Mobile World Congress is going to dominated by three Cs – cloud, cells and coffee.
LRTV Huawei Video Resource Center
Huawei Shares Its Vision of the Future of Mobile Networks Innovations

2|26|15   |   2:30   |   (0) comments


Mobile broadband is changing our lives. It's reshaping the Internet, industry, and society. It allows us to freely connect with one another anytime, anywhere. At this year's Mobile World Congress, Huawei will share its latest insights and newest ideas and technologies that will shape the future of MBB. They will showcase their end-to-end MBB solutions that will ...
LRTV Huawei Video Resource Center
Accelerate Digitizing, Boost Digital Business

2|26|15   |   6:14   |   (0) comments


A new digital revolution is leading us to a better connected world. Together with millions of digital partners, Huawei will help CSPs to build their digital service ecosystem and aggregate a wide variety of digital services. In this video, we find out how Huawei is going to help CSPs implement digital operations.
LRTV Huawei Video Resource Center
The Secret Recipe to Enabling Hyper-Growth Industries

2|26|15   |   3:38   |   (0) comments


With a number of successful cases on network capability exposure, Huawei is going to share the secret recipe to enabling hyper-growth markets with a step-by-step approach.
LRTV Documentaries
BTE 2015 Is Bigger & Even Better

2|25|15   |   03:13   |   (4) comments


This year's Big Telecom Event (BTE) in Chicago is going to provide more opportunities than ever for networking, getting to grips with key industry challenges and opportunities and, equally as important, having some fun.
Upcoming Live Events
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
All Upcoming Live Events
Infographics
Net neutrality, broadband services and the current outlook on data consumption, as presented by the New Jersey Institute of Technology.
Hot Topics
Internet Pioneers Decry Title II Rules
Carol Wilson, Editor-at-large, 3/2/2015
Wheeler: We'll Enforce Title II 'Case-By-Case'
Sarah Thomas, Editorial Operations Director, 3/3/2015
New CenturyLink CTO in Major Overhaul
Carol Wilson, Editor-at-large, 3/4/2015
Verizon Takes Radio Dot to Detroit, VoLTE Overseas
Sarah Thomas, Editorial Operations Director, 2/27/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Check out Light Reading's interview with Jay Samit, the newly appointed CEO of publicly traded SeaChange International Inc. With a resume that includes Sony, EMI, and Universal, Samit brings a reputation as an entrepreneur and a disruptor to his new role at the video solutions company. Hear what he had to say about the opportunities in video, as well as the outlook for cable, telco, OTT and mobile service providers.