JDSU Preps Fab Sales
Both moves would apparently be part of a streamlining that former CEO Kevin Kennedy announced during an earnings call in November. Kennedy upstaged the news minutes later by rebranding himself as outgoing CEO. (See Kennedy Bids JDSU Adieu and JDSU's Kennedy Lands at Avaya.)
JDSU has 19 sites and wants to get down to 12, partly by unloading some manufacturing facilities, Kennedy said at the time. He also announced layoffs of 400, which according to some sources were carried out in recent weeks.
JDSU declined to comment on the Shenzhen and Picolight rumors, though.
Rumors about the sale of the Shenzhen fab began spreading last month, with the presumed buyer being contract manufacturer Fabrinet Co. Ltd. (NYSE:FN) (See JDSU: Selling Out?) That deal is now on the verge of closing, sources told Light Reading last week.
Details on a potential Picolight deal are more vague. Some sources think the fab's Vertical Cavity Surface Emitting Lasers (VCSELs) production is being moved into one of JDSU's Bay Area facilities -- implying JDSU would continue selling the devices.
Picolight's lasers go into low-speed datacom transceivers, and that happens to be a business JDSU wants to exit. In November, Kenedy had said the company will focus on 8- and 10-Gbit/s transceivers instead.
— Craig Matsumoto, West Coast Editor, Light Reading