& cplSiteName &

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        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
The independent evaluation of Nokia's key virtual network functions (VNFs) was a defining moment for the Finnish giant.
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 Documentaries
Leading Lights 2016 Highlights

5|25|16   |   02:26   |   (1) comment


Some of the high points from this year's Leading Lights awards dinner at the Hotel Ella in Austin, Texas.
LRTV Documentaries
Light Reading Hall of Fame 2016

5|23|16   |   05:43   |   (0) comments


Find out who has been welcomed into Light Reading's Hall of Fame this year.
LRTV Custom TV
ZTE TM Forum Highlights

5|23|16   |     |   (0) comments


ZTE showcased its new ICT solutions at TM Forum in Nice.
LRTV Interviews
Gamma's MD on the Emergence of UC2

5|20|16   |     |   (0) comments


Gamma Communications Managing Director David Macfarlane believes the unified communications (UC) market has reached a tipping point.
LRTV Custom TV
The Ultimate 5-Minute Guide to Digital Customer Engagement

5|20|16   |     |   (0) comments


In this short video, you will hear all about how Digital Customer Engagement is the key to meeting customer expectations, keeping them happy, and maximizing revenue. VP Product & Marketing at Pontis, Ofer Razon, breaks down for us the five essential capabilities for successful Digital Customer Engagement. Don’t miss!
LRTV Custom TV
NFV in 2016: Part 1 – NFV Use Cases Get Real

5|19|16   |   05:57   |   (0) comments


Consensus is building around the key use cases for NFV, including managed IP services at the network edge and on customer premises, which can generate new revenues from enterprises/SMBs and consumers; Evolved Packet Core to support LTE migration; and adjacent technologies, such as TAS and IMS, to support VoLTE and next-generation charging and policy control ...
LRTV Custom TV
Nokia's Steve Vogelsang on NFV – Part 3

5|19|16   |     |   (0) comments


Steve Vogelsang discusses the challenges of operational transformation and how Nokia helps its customers. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
LRTV Interviews
Level 3: Why UC Is In Demand

5|17|16   |   04:12   |   (1) comment


Andrew Edison, Level 3's senior VP of sales, EMEA region, talks about the drivers of growth in the unified communications services market.
LRTV Custom TV
ARM's OPNFV Action

5|17|16   |     |   (0) comments


At the ARM booth at MWC 2016, Joe Kidder and Bob Monkman speak to Light Reading about OPNFV and their upcoming action.
LRTV Custom TV
Nokia's Steve Vogelsang on NFV – Part 2

5|16|16   |     |   (0) comments


Steve Vogelsang gives advice to service providers on how to move to NFV. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
LRTV Interviews
Interoute CTO on NFV's Maturity

5|13|16   |   06:46   |   (1) comment


Matt Finnie, CTO at international operator Interoute, explains how NFV has made life easier in terms of logistics and how Interoute can now enable a 'software-defined moment' for its customers.
LRTV Huawei Video Resource Center
UBBS 2016 Highlights

5|12|16   |     |   (0) comments


Highlights of Huawei's UBBS event in Hong Kong.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
December 6-8, 2016,
June 16-18, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
Hot Topics
DT: Telcos Must Escape Vendor Prison
Iain Morris, News Editor, 5/24/2016
AT&T to Start 5G 'Friendly' Trial by 2016 End
Dan Jones, Mobile Editor, 5/24/2016
WiCipedia: Short Skirts & Back-Up Plans
Eryn Leavens, Special Features & Copy Editor, 5/20/2016
Eurobites: Be More European, EU Tells Streaming Services
Paul Rainford, Assistant Editor, Europe, 5/20/2016
Cable Is Eyeing Its Retail Options
Mari Silbey, Senior Editor, Cable/Video, 5/25/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
Animals with Phones
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.