& cplSiteName &

JDSU Sounds Upbeat About 2013

Craig Matsumoto
1/31/2013
50%
50%

Shares of JDS Uniphase Corp. are up $2.24 (18%) at $14.64 Thursday morning -- their highest level since March -- as the company reported a relatively good outlook for its businesses, including optical components. Note the word "relatively." For its third quarter, which ends in March, JDSU thinks its Communications and Commercial Optical Products (CCOP) division will see revenues flat with the December quarter, give or take 3 percent. That's despite price declines of 5 percent that are expected to hit this quarter, due to the annual renegotiation of optical components prices. "We think they are seeing improved visibility on [2013] already," writes Alex Henderson of Needham, in a report issued Thursday morning. He'd expected CCOP revenues to be down 3 percent in the quarter. Carriers are expected to increase their spending in 2013. Early signs of that include Deutsche Telekom AG pushing its capital expenditures plan to €30 billion (US$40.7 billion), and AT&T Inc. promising to put more money into wired and wireless access. (See DT's €30B Plan Wraps LTE With Vectoring and AT&T Puts Up $14B to Boost Broadband.) Much of that spending won't start until the second quarter, so JDSU isn't seeing a benefit from it yet. "Given short lead times, management is not worried and expects orders to pick up fairly soon," analyst Michael Genovese of MKM Partners wrote in a Thursday morning report. But let's get back to the word "relatively." Optical communications revenues for the second quarter, which ended Dec. 31, were $155.6 million, down 5 percent from the previous quarter. On top of that, the book-to-bill ratio for the segment was less than 1.0, a sign that orders are slowing down. A lot of that has to do with customers moving to vendor-managed inventory (VMI), a cool business-school term for foisting inventory responsibilities onto one's suppliers. It means the customer won't stock big inventories of components, which in turn means sales will temporarily dip when the transition is made. In JDSU's second quarter, for instance, sales of reconfigurable optical add/drop multiplexers (ROADMs) fell to $31 million, down 23 percent from the previous quarter, with about half of that decline attributable to VMI, executives said on Wednesday's earnings call. Forty-six percent of JDSU's optical revenues are now managed under VMI, executives said. For its second quarter, JDSU reported a profit of $4.1 million, or 2 cents per share, on revenues of $429.4 million. For the same quarter a year ago, JDSU reported a loss of $10.2 million, 4 cents per share, on revenues of $409.3 million. Non-GAAP earnings per share of 18 cents beat the analysts' estimate of 14 cents tallied by Thomson Reuters. — Craig Matsumoto, Managing Editor, Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
chuckj
50%
50%
chuckj,
User Rank: Light Sabre
2/1/2013 | 4:36:52 PM
re: JDSU Sounds Upbeat About 2013
Will see if if they believe in what they say. -áIt is a big no, if the management dump thier RSU's in the next couple of weeks.
From The Founder
Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability.
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 Interviews
CenturyLink: Let's Get Past SD-WAN Hype

6|23|17   |   04:02   |   (0) comments


Technology becomes a "shiny object" unless it's properly focused on solving business needs for enterprise customers, says Bill Grubbs, network solutions architect for CenturyLink. He explains to Light Reading why SD-WAN deployments have to be tailored to specific needs – and more.
Women in Comms Introduction Videos
Infinera's Sales Director Paints Tech's Big Picture

6|21|17   |   4:14   |   (1) comment


Shannon Williams, Infinera's director of sales, shares how she achieves work's many balancing acts -- between her role and the broader company, today and tomorrow's tech and more.
LRTV Custom TV
SD-WAN Innovation & Trends

6|20|17   |     |   (0) comments


Versa CEO Kelly Ahuja discusses with Carol Wilson the current status and trends in the SD-WAN market, Versa's innovation around building a software platform with broad contextualization, and the advantages that startups can bring to the SD-WAN market.
LRTV Interviews
Ovum's Dario Talmesio on 5G in Europe

6|20|17   |   02:16   |   (0) comments


At 5G World 2017, Dario Talmesio, principal analyst and practice leader on Ovum's fixed and mobile telecoms European team, explains the emerging trends amongst European operators as they prepare for 5G.
LRTV Custom TV
Putting Power on a Pedestal

6|19|17   |     |   (0) comments


ARRIS's John Ulm says a major accomplishment of SCTE•ISBE's Energy 2020 program is increased focus on power cost and consumption, including inclusion of energy requirements in operators' RFPs and RFIs.
LRTV Custom TV
Gigabit Access: The Last-Mile Pipe for All Future Services

6|19|17   |     |   (0) comments


A Gigabit access platform being deployed today must be able to deliver all types of services to an increasing number of devices. A non-blocking architecture is necessary to support the ever-increasing growth in bandwidth demand. The Huawei Gigabit access solution is based on a distributed design that is fully scalable to deliver a unprecedented performance.
LRTV Custom TV
Key Factors to Successfully Deploy an SD-WAN Service

6|19|17   |     |   (0) comments


As service providers transition their SD-WAN solution from trials and limited deployments into production at large scale, there are important considerations to successfully operationalize these solutions and realize their full potential, without adding complexity, introducing uncertainty or disrupting current business operations. Sunil Khandekar, CEO and Founder ...
LRTV Custom TV
IoT Solutions: Rational Exuberance

6|19|17   |     |   (0) comments


IoT solutions are morphing from hype into viable business opportunities. Huawei has the platform and ecosystem support to help carriers successfully address new business opportunities in the IoT space.
LRTV Custom TV
Realizing ICN as a Network Slice for Mobile Data Distribution

6|19|17   |     |   (1) comment


Network slicing in 5G allows the potential introduction of new network architectures such as Information-centric Networks (ICN) as a slice, managed over a shared pool of compute, storage and bandwidth resource. Services over an ICN slice can benefit from many architectural features such as Name Based Networking, Security, Multicasting, Multi-homing, Mobility, ...
LRTV Interviews
Ovum's Mike Roberts on 5G Uptake

6|19|17   |   04:08   |   (0) comments


Mike Roberts, research director for Ovum's service provider markets group, explains why he has boosted his 5G subscriptions forecast.
LRTV Interviews
AT&T's Hubbard on Intersection of SD-WAN & MPLS

6|15|17   |     |   (0) comments


Rick Hubbard, SVP of Network Product Management for AT&T Business Solutions, discusses how AT&T's approach to SD-WAN fits in with its overall virtualization strategy, explains how SD-WAN can improve enterprise customers' use of the cloud and addresses the intersection of SD-WAN and MPLS.
Telecom Innovators Video Showcase
Keep Connected IoT Devices Under Control With Allot

6|15|17   |     |   (0) comments


Allot AVP of International Pre-Sales, Daniel Keidar, explains how communications service providers can protect infrastructure and service availability from flooding attacks caused by malfunctioning or bot-infected devices connected to their network.
Upcoming Live Events
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Montcalm Marble Arch
November 1, 2017, The Montcalm Marble Arch
November 30, 2017, The Westin Times Square
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
Netflix's Lesson in Culture Expectation Settings
Sarah Thomas, Director, Women in Comms, 6/21/2017
Kalanick Steps Down as Uber CEO
Sarah Thomas, Director, Women in Comms, 6/21/2017
BT Tech Chief Makes Plea to 5G Chip Vendors
Ray Le Maistre, International Group Editor, 6/20/2017
Buy American: Will It Affect the Telecom Sector?
Dan Jones, Mobile Editor, 6/21/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
Animals with Phones
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.