JDSU Predicts Blowout Quarter
For the quarter ended December 31, JDSU will report revenues of $360 million to $365 million, officials announced yesterday. That's better than the maximum $352 million JDSU was predicting earlier and is way ahead of the Wall Street consensus estimate of $342 million, as tallied by Reuters Research . (See JDSU Boosts Q2 Forecast.)
Analysts expect JDSU to record a non-GAAP profit of 8 cents per share on the quarter.
JDSU reports earnings on January 31.
It's the second quarter in a row that JDSU has sprung a pleasant surprise. Its first-quarter earnings -- the first pro forma profitable quarter since time began, it seems -- beat expectations, too. Granted, they were lowered expectations, but it still counts. (See JDSU Shoots Low and JDSU Lands in the Black.)
The downside is that optical component revenues declined from JDSU's first quarter, which means the revenue surge can't be credited to the appearance of a JDSU laser on CSI. (See CSI: JDSU.) JDSU's statement yesterday notes "inventory rationalization" by customers, suggesting a glut might have built up in the supply chain.
Instead it was the vendor's test-and-measurement division to the rescue with a seasonal surge. The test-and-measurement market has been an important part of JDSU's world ever since the 2005 acquisition of Acterna, which was supplemented recently with an agreement to buy tiny wireless test firm Casabyte Inc. (See JDSU Buys Into Testy Market and JDSU, Symmetricom Snap Up Minnows.)
— Craig Matsumoto, West Coast Editor, Light Reading