& 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.-
Featured Video
From The Founder
Light Reading founder Steve Saunders grills Cisco's Roland Acra on how he's bringing automation to life inside the data center.
Flash Poll
Upcoming Live Events
February 26-28, 2018, Santa Clara Convention Center, CA
March 20-22, 2018, Denver Marriott Tech Center
April 4, 2018, The Westin Dallas Downtown, Dallas
May 14-17, 2018, Austin Convention Center
All Upcoming Live Events
Infographics
SmartNICs aren't just about achieving scale. They also have a major impact in reducing CAPEX and OPEX requirements.
Hot Topics
Project AirGig Goes Down to Georgia
Dan Jones, Mobile Editor, 12/13/2017
Here's Pai in Your Eye
Alan Breznick, Cable/Video Practice Leader, Light Reading, 12/11/2017
Verizon's New Fios TV Is No More
Mari Silbey, Senior Editor, Cable/Video, 12/12/2017
Ericsson & Samsung to Supply Verizon With Fixed 5G Gear
Dan Jones, Mobile Editor, 12/11/2017
Juniper Turns Contrail Into a Platform for Multicloud
Craig Matsumoto, Editor-in-Chief, Light Reading, 12/12/2017
Animals with Phones
Don't Fall Asleep on the Job! Click Here
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