JDSU Says: 'Go Teem'
JDSU has made several similar moves lately, including the sale of its cable-TV business to Emcore Corp. (Nasdaq: EMKR), the transfer of some facilities to contract manufacturer Fabrinet Co. Ltd., and some job cuts. At the same time, the company has been adding new pieces, most notably test-equipment firm (See Trimming Continues at JDSU, JDSU Cuts Continue, Fabrinet Acquiring JDSU China Facility, JDSU Acquires Photonic Power, and JDSU Buys Into Testy Market.)
The moves, including the Teem sale, are all part of "[CEO] Kevin Kennedy's general transitional strategy to bring the company back to cash profitability," a spokeswoman says.
The volume of deals has led to an accounting headache. JDSU's earnings call was postponed yesterday, as officials said they need extra time to audit the one-time charges racked up during the company's fourth quarter (see JDSU Delays Q4 Report).
Of separate interest is the fact that Teem Photonics is still alive, as the company hasn't been heard from much since raising €10 million in 2003 (see Teem Turns €10M Trick).
Teem still makes the erbium-doped waveguide amplifiers that were its claim to fame in 2000, when the company raised $31 million (see Teem Raises Component Steam). The company has also joined the fiber-to-the-home party with a line of passive splitters.
But the JDSU deal "represents an additional direction for Teem," says Jay Liebowitz, Teem's executive vice president. Q-switched lasers, which deliver a high-energy pulse lasting less than a nanosecond, are useful in industrial and biomedical circles, although Liebowitz wouldn't say which markets Teem intends to pursue.
Patents related to the Q-switched microlasers will remain with JDSU and will be licensed exclusively to Teem. JDSU also has agreed to supply Teem with some of the components necessary to build the devices.
— Craig Matsumoto, Senior Editor, Light Reading