& cplSiteName &

JDSU Sees Growth in Optical & SPIT

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        ADD A COMMENT
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
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
CommScope – Meeting the Demands of Tomorrow's Networks

3|24|17   |     |   (0) comments


Phil Sorksy, Vice President International at CommScope, discusses addressing the challenges faced by service providers today, and as future trends emerge.
LRTV Huawei Video Resource Center
AMS-IX & Huawei's OSN 902

3|24|17   |     |   (0) comments


Huawei shows how its OSN 902 platform helps the Amsterdam Internet exchange to connect the world using multiplexing.
LRTV Huawei Video Resource Center
Huawei's Smart Energy Innovation Center

3|24|17   |     |   (0) comments


In Nuremberg, Huawei showcases its latest capabilities in the digitalization of Internet resources, network infrastructure and intelligence at its Smart Energy Innovation Center.
Valley Wonk
OFC & Hyperscale: A Good Mix?

3|24|17   |   01:50   |   (0) comments


Cloud and telecom players want different types of equipment for their networks, as the chatter at OFC reveals.
LRTV Custom TV
Etisalat on NFV Journey

3|24|17   |   10:37   |   (0) comments


Etisalat is a service provider that prides itself on bringing innovative technologies to the markets it serves. It was one of the first operators to implement 3G and leads the pack in fiber penetration. Now, Esmaeel Al Hammadi, Etisalat's SVP of Network Development, explains the operator's journey to virtualization, beginning with the network core, as well as the ...
LRTV Huawei Video Resource Center
Huawei at CeBIT 2017: Day 3

3|22|17   |     |   (0) comments


Light Reading reports from CeBIT 2017 in Germany, where Huawei is exhibiting on the application of technologies and key business verticals such as transportation, smart city, manufacturing, media and finance.
LRTV Documentaries
No Regrets: Cox's Finkelstein on Fiber & More

3|22|17   |     |   (0) comments


At the Cable Next-Gen Technologies & Strategies event in Denver, Cox's Jeff Finkelstein examines the cable capex conundrum.
LRTV Documentaries
Cable Next-Gen: The 'Mile High' View From Denver

3|22|17   |   11:56   |   (0) comments


Alan Breznick kicks off the Cable Next-Gen Technologies & Strategies event in Denver, casting his thousand-yard stare over cable's current competitive landscape.
LRTV Huawei Video Resource Center
Huawei at CeBIT 2017: Day 2

3|21|17   |   2:27   |   (0) comments


Light Reading reports from CeBIT 2017 in Germany, where Huawei is exhibiting digital transformation solutions around IoT, smart data centers, OpenCloud ecosystem and its newly announced storage-as-a-service solution.
LRTV Custom TV
Driving Better Mobile Customer Experience While Transforming the Mobile Network

3|21|17   |   7:47   |   (0) comments


The Citrix NetScaler mobile gateway is an intelligent traffic management solution which can markedly improve the customer experience provided by mobile operators, even when traffic is encrypted. Critical network services can be consolidated and virtualized using NetScaler. Because of the unique architecture, NetScaler can be deployed on any hypervisor, on a ...
LRTV Custom TV
Mastercard: What's Next for Mobile Payments?

3|21|17   |   7:49   |   (0) comments


2017 marks the fifth consecutive year for Mastercard at Mobile World Congress and it was a great time to reflect on the amazing advances the payments industry has made as well as discuss "What's Next' in the digital commerce future. We spoke to James Anderson, executive vice president of digital payments at MasterCard, about digital wallets to tokenization to ...
LRTV Custom TV
Mastercard: 2 Billion Adults 'Trapped' in Cash Economy

3|21|17   |   03:51   |   (1) comment


Despite advances made in the last several years, two billion adults around the world are trapped in a cash economy and lack what we take for granted -- a safe way to receive, save and use money. Shamina Singh, executive vice president of sustainability and president of the Mastercard Center for Inclusive Growth, chats about how Mastercard is developing new ways to ...
Upcoming Live Events
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
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
High-Band 5G: Let's Address the Range Question, Shall We?
Dan Jones, Mobile Editor, 3/21/2017
Eurobites: A1, Nokia Turn It Up to 11
Paul Rainford, Assistant Editor, Europe, 3/22/2017
FTTH No Slam Dunk for Cable
Carol Wilson, Editor-at-large, 3/23/2017
Welcome to the Wild West of Privacy
Carol Wilson, Editor-at-large, 3/24/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
At MWC 2017, Qualcomm's CTO Matt Grob talks to Light Reading's CEO and Founder Steve Saunders about the progress being made in the development of the technologies and standards that will underpin 5G.
Animals with Phones
Neither Do We Click Here
Is that a prerequisite?
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.