JDSU Q2 Revenues Drop

Reports revenues of $180.5M and losses of $43.5M, compared with revenues of $152.6M and losses of $58.5M a year ago

January 26, 2005

4 Min Read

SAN JOSE, Calif. -- JDS Uniphase Corporation (Nasdaq: JDSU; TSX: JDU) today reported results for the second quarter ended December 31, 2004.

Net revenue for the second quarter was $180.5 million, and net loss was $43.5 million, or $0.03 per share. This compares to net revenue of $194.5 million and a net loss of $36.0 million, or $0.02 per share, reported in the first quarter of fiscal 2005, and to net revenue of $152.6 million, and a net loss of $58.5 million, or $0.04 per share, for the second quarter of fiscal 2004.

On a non-GAAP basis, net loss in the second quarter was $31.1 million, or $0.02 per share, as compared to a non-GAAP net loss of $14.1 million, or $0.01 per share, in the first quarter of fiscal 2005, and to a non-GAAP net loss of $19.3 million, or $0.01 per share, in the second quarter of fiscal 2004.

On a non-GAAP EBITDA basis (non-GAAP earnings before interest, taxes, depreciation and amortization), net loss was $25.7 million for the quarter ended December 31, 2004, as compared to a net loss of $5.9 million in the first quarter of fiscal 2005, and to a net loss of $14.7 million in the second quarter of fiscal 2004.

Use of Non-GAAP Financial Measures

The Company provides non-GAAP financial information in order to provide meaningful supplemental information regarding its operational performance and to enhance its investors' overall understanding of its core current financial performance and its prospects for the future. The Company believes that its investors benefit from seeing its results "through the eyes" of management in addition to the GAAP presentation. Management measures segment and enterprise performance using measures such as are disclosed in this release. This information facilitates management's internal comparisons to the Company's historical operating results and comparisons to competitors' operating results.

We believe non-GAAP information provides greater transparency to supplemental information used by management in its financial and operational decision-making. Historically, the Company has reported similar non-GAAP information to its investors and believes that the inclusion of comparative numbers provides consistency in its financial reporting.

This information is not in accordance with, or an alternative for, generally accepted accounting principles in the United States. It excludes items, such as restructuring and realignment charges, reductions in long-lived assets, reductions in the fair value of investments, gains on sales of investments, losses on equity method investments and amortization, that may have a material effect on the Company's earnings and earnings per share calculated in accordance with GAAP. Management monitors these excluded items to ensure that expenses are in line with management's expectations and that the Company's GAAP results are correctly stated, but does not use them to measure the ongoing operating performance of the Company. A detailed reconciliation is at the end of this press release.

Financial Overview - Second Quarter Ended December 31, 2004

  • Communications Products Group net revenue of $106.7 million was up slightly from last quarter, and represented 59% of net revenue. Commercial and Consumer Products Group net revenue declined 17% sequentially, and represented $73.8 million, or 41% of net revenue.

  • On a geographic basis, net revenue from North American customers represented 68% of net revenue. European and Asia-Pacific customers represented 18% and 14% of net revenue, respectively.

  • GAAP gross margin was 16.5% of net revenue, and non-GAAP gross margin was 16.8% of net revenue.

  • GAAP operating expenses were $76.5 million, representing 42.4% of net revenue. Non-GAAP operating expenses were $66.1 million, or 36.6% of net revenue.

  • The Company held $1,416.4 million in cash, cash equivalents and short-term investments at the end of the second quarter, of which approximately $1,362.4 million was cash, money market and other highly liquid fixed income securities. The Company used approximately $33.4 million in cash from operations, including $25.6 million used for restructuring and realignment payments. Investment related activity consumed approximately $7.7 million in net cash.

Business Outlook

Management provided the following financial guidance. For the third fiscal quarter ending March 31, 2005, the company expects:

  • Net revenue in the range of $155 to $165 million; and

  • Non-GAAP loss per share of approximately two cents.

This outlook excludes items which, depending upon actual results, may be required by GAAP, such as restructuring and related costs, acquisition related costs, amortization of purchased intangibles, reductions of goodwill and other long-lived assets, and gains and losses on investments, the likelihood and amount of which are uncertain at this time.

JDS Uniphase Corp.

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