JDSU Inches Toward Profits
For its second quarter, which ended Dec. 31, JDSU reported losses of $42.1 million, or 3 cents per share, on revenues of $312.9 million, compared with losses of $67 million, 4 cents per share, on revenues of $258.3 million the previous quarter. (See JDSU Reports Q2.)
For its second quarter a year ago, JDSU reported losses of $41 million, 3 cents per share, on revenues of $180.5 million.
JDSU's non-GAAP net losses for the second quarter were $3.7 million, or zero cents per share, matching analysts's per-share forecast according to Thomson Reuters . Analysts had expected JDSU to report revenues of $312.6 million.
Investors seemed a tad unhappy with the results, as JDSU shares fell 10 cents (3.2%) to $3.06 in early after-hours trading.
JDSU sees continued strong demand for optical components, and that might lead to some pleasant surprises next quarter. The company is forecasting revenues of $304 million to $321 million for its third quarter, compared with $309 million predicted by analysts. Moreover, analysts think JDSU will GAAP profits of $7 million next quarter, rounding off to zero cents per share.
For now, JDSU can only say it's "non-GAAP EBIDTA," profitable, CEO Kevin Kennedy told investors in a conference call today, but he treated that as a minor milestone. "A year ago, more than three-quarters of the company was focused on restructuring," he explained. "Today, more than half of JDSU's business is concentrated on sales and growth."
That doesn't mean cost-cutting is over, as cuts of another 380 jobs were announced just last quarter. (See JDSU Sells More, Cuts More.) The company continued to sell facilities and land, as it previously announced, and similar cuts will continue: "We must decrease our operating expenses," Kennedy said. JDSU investors have approved a reverse split with a ratio of 1:8 to 1:10 that could be executed any time before December 2006. Kennedy didn't indicate when that might happen, saying only that it's a matter for the board to discuss. (See JDSU Prepares Reverse Split.)
— Craig Matsumoto, Senior Editor, Light Reading