JDS Uniphase Q1 Loss Narrows; Guides Q2 Revenues - Update
(RTTNews) - JDS Uniphase Corp. (JDSU), a provider of communications test and measurement solutions, on Wednesday said first quarter net loss narrowed from last year, with revenues rising year-over-year. The company also provided second quarter revenue guidance.
The Milpitas, California-based company said first quarter net loss narrowed to $6.9 million or $0.03 per share from $17.4 million or $0.08 per share in the same period last year.
Non-GAAP net income, excluding items such as stock-based compensation expenses, amortization of acquired developed technologies and restructuring charges, increased to $18.0 million or $0.08 per share from $6.8 million or $0.03 per share in the first quarter of the prior year.
On average, 13 analysts polled by First Call/Thomson Financial expected the company to earn $0.06 per share for the quarter.
On an adjusted EBITDA basis, JDS reported $23.7 million for the first quarter, a surge from $9.6 million for the first quarter 2007. The company reported total segment operating income of $7.8 million, compared to $7.0 million in the prior-year period. Gross profit increased to $133.7 million from $98.0 million.
Net revenue rose to $356.7 million from $318.1 million reported in the previous year. On a non-GAAP basis, net revenue rose to $357.2 million from $318.2 million. Street expected revenues of $355.85 million.
Optical Communications revenue slipped to $121.3 million from $138.0 million, while Communications Test & Measurement revenues rose to $168.0 million from $116.8 million. Advanced Optical Technologies segment generated $48.0 million revenues, up from $39.3 million in the previous year. All Other, Commercial Lasers contributed $19.9 million to the total revenue, down from $24.1 million in the previous year.
Total operating expenses climbed to $155.2 million from $134.7 million. In the just concluded period, 219.2 million shares were used in per share calculation, compared to 210.9 million in the year-ago quarter.
Cash and cash equivalents as of September 29, 2007 were $376.7 million, while they were $362.9 million, as of June 30, 2007. Inventories for the same periods were $199.3 million and $204.3 million, respectively.
Commenting on the results, Kevin Kennedy, JDSU's Chief Executive Officer, said: "In Q1 all key financial metrics improved sequentially as well as year-over-year. For the third consecutive quarter, the company was free cash flow positive at more than $27 million. Looking forward, JDSU remains focused on innovation and continuous improvement of our business model."
Looking ahead to the second quarter, the company expects non-GAAP net revenue of $372-$394 million. Wall Street looks for revenues between $370 million and $415 million, with the consensus being $393.02 million.For the fourth quarter, the company said loss per share narrowed to $0.08 from $0.22 in the year-ago period. On a non-GAAP basis, basic EPS was $0.07, compared to a loss of $0.01 per basic share in the prior year quarter. Net revenue for the quarter rose to $350.7 million from $318.2 million in the previous year period.
On August 23, brokerage Thomas Weisel raised its 2008 revenue estimate for JDS to $1.542 billion from $1.525 billion, and its 2009 estimate to $1.667 billion from $1.660 billion. The brokerage increased its price target to $16 from $14, while maintaining its "Market Weight" rating on the stock. However, the brokerage maintained its 2008 earnings per share estimate of $0.45, and its 2009 estimate of $0.61.
Analyst Ajit Pai noted that JDSU reported fiscal 2007 fourth quarter results with better-than-expected pro forma sales that benefited from strength in communications T&M that more than offset soft optical communications sales.
Stock Movement
JDSU closed Wednesday's regular trade at $15.26, up $0.07 or 0.46% from the previous close, on 4.47 million shares. The stock lost $0.26 or 1.70% in post-close trade and was at $15. For the past year, the stock moved between $12.41 and $19.66.
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