Light Reading

JDSU Sees Growth in Optical & SPIT

Craig Matsumoto
News Analysis
Craig Matsumoto
2/15/2013
50%
50%

After giving an optimistic 2013 forecast, JDS Uniphase Corp. convened analysts Thursday to tell them why the outlook is so upbeat.

In part, it's because optical networking is looking up, judging from the analysts' reports that were published Friday morning.

"The organization remains very upbeat about a resurgence in Telecom demand this year," writes James Kisner, an analyst with Jefferies & Co. Inc.

Test and measurement makes up 45 percent of JDSU's sales, so of course, a lot of the optimism comes from that sector. But optical components have a pretty good outlook, too.

Kisner noted that Alan Lowe, president of JDSU's Communications and Commercial Optical Products division (CCOP), said "the sales 'funnel' in Optical Communications -- not just in ROADM line cards but 'across the board' -- is the largest it's been years."

"It now sounds like there is more confidence in Optical Communications as carriers bring JDSU into discussions with its OEM customers (i.e., Ciena) to customize products like TrueFlex ROADMs and Super Transport Blades for 2013 deployment," writes analyst Mike Genovese of MKM Partners.

JDSU will be looking for acquisitions, but mostly on the communications test side, and maybe in some specific areas such as commercial lasers and anti-counterfeiting technology. (JDSU has a hand in a lot of weird markets such as anti-counterfeiting pigments and gesture-recognition technology.)

But executives said they "would rather not consolidate the optical component market," even though most executives and analysts have agreed for years that some trimming would do the sector some good.

"Industry consolidation would strengthen optical players as companies become more efficient, take advantage of scale, reduce R&D spending, command better pricing, and thrive instead of fighting for survival," writes analyst Simon Leopold of Raymond James Financial Inc.

Any acquisitions would more likely be in the communications test sector, particularly on the wireless side, JDSU executives told analysts.

Packing PacketPortal
Separately, PacketPortal -- cloud-based software that feeds data about the network to monitoring and management tools -- is growing rapidly, although JDSU indicated sales won't exceed $15 million in fiscal 2014, which ends June 2014, Kisner writes.

Kisner thinks JDSU is low-balling it. "Heard acknowledged that they have individual projects with individual customers that are that large. The biggest uncertainty here appears to be the relatively complicated nature of software revenue recognition; we understand this guidance assumes that revenue recognition "dribbles" in without recognizing any large orders," Kisner writes.

JDSU officials said they'll be announcing a PacketPortal version to monitor wireless small cells, Kisner writes. That announcement should be coming at Mobile World Congress the week of Feb. 25.

PacketPortal now has 14 customers and has been in 36 trials that are underway or have completed.

For more

— Craig Matsumoto, Managing Editor, Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Craig Matsumoto
50%
50%
Craig Matsumoto,
User Rank: Light Sabre
2/16/2013 | 12:13:04 AM
re: JDSU Sees Growth in Optical & SPIT
If customized optics can help JDSU differentiate
enough and grow enough, I'm not sure JDSU needs to be the one to consolidate
the market. Not sure Finisar or Oclaro relishes the idea of doing it either, though.-á
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.
Between the CEOs
EXCLUSIVE: Cisco's Chambers on Reinvention

3|3|15   |   8:24   |   (0) comments


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.
LRTV Interviews
Light Reading ICT Leaders Roundtable at MWC 2015

2|12|15   |   1:07   |   (2) comments


On Sunday March 1, 2015, Light Reading will host an ICT Leaders Roundtable in partnership with Huawei. At this half-day event, CIOs, analysts and researchers will discuss key industry trends like virtualization in the cloud with a specific focus on new business models. Located at the luxurious Renaissance Hotel near the Fira Barcelona, space is limited so please ...
LRTV Documentaries
Going Green in 2015

2|12|15   |   02:04   |   (0) comments


Energy efficiency is set to be an incredibly hot topic in the telecom industry this year.
LRTV Custom TV
SDN & NFV: Where Are We Going From Here?

2|11|15   |   11:27   |   (0) comments


Vitesse Semiconductor CTO Martin Nuss gives his perspective on why SDN and NFV should be tightly interconnected and how he sees the industry moving forward.
LRTV Documentaries
Time for Gigabit Europe?

2|9|15   |   01:27   |   (4) comments


Gigabit broadband networks are springing up all around the US and they'll soon become more commonplace in Europe.
LRTV Interviews
Brocade Brings New IP Vision to 2020 Vision Executive Summit

2|3|15   |   4:23   |   (0) comments


In December 2014, Light Reading gathered telecom executives in Reykjavik, Iceland to discuss their vision for high-capacity networks through the end of the decade. The intimate, interactive meeting was set against the backdrop of Iceland's spectacular natural beauty. As one of the event's founding sponsors, Brocade's Kelly Herrell shared his company's strategy at ...
LRTV Interviews
Brocade's Kelly Herrell on the New IP

2|2|15   |   12:36   |   (0) comments


In December 2014, Steve Saunders sat down with Brocade VP of Software Networking Kelly Herrell at Light Reading's 2020 Vision executive summit in Reykjavik, Iceland. They spoke about Brocade's approach to the New IP, the future of the telecom industry, and more.
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
Small Cells Enabling Location Services
Sarah Thomas, Editorial Operations Director, 2/25/2015
Verizon Takes Radio Dot to Detroit, VoLTE Overseas
Sarah Thomas, Editorial Operations Director, 2/27/2015
FCC Adopts Title II Rules
Alan Breznick, Cable/Video Practice Leader, 2/26/2015
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.