JDS Uniphase Corp Earnings: Revenue Falls After Four Straight Quarters of Rising

Despite reversing to a loss in the second quarter, S&P 500 (NYSE:SPY) component JDS Uniphase Corporation (NASDAQ:JDSU) can hang its hat on beating Wall Street’s expectations. JDS Uniphase provides communications test and measurement solutions and optical products for cable operators, telecommunications service providers and network equipment manufacturers.

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JDS Uniphase Earnings Cheat Sheet for the Second Quarter

Results: Reported a loss of $10.2 million (4 cents per diluted share) in the quarter. The communication equipment company had net income of $23.6 million or 10 cents per share in the year earlier quarter.

Revenue: Fell 12.8% to $412.8 million from the year earlier quarter.

Actual vs. Wall St. Expectations: JDS Uniphase Corporation reported adjusted net income of 15 cents per share. By that measure, the company beat the mean estimate of 4 cents per share. It beat the average revenue estimate of $390.9 million.

Quoting Management: “Our fiscal second quarter financial results surpassed our expectations. The outstanding efforts of our team and our manufacturing partner in Thailand coupled with our continued focus on expense control resulted in revenue and operating income that exceeded our guidance. Our balance sheet remains strong and we generated over $45 million of cash from operations during the quarter,” said Tom Waechter, JDSU’s President and Chief Executive Officer. “Looking ahead, we are pleased with the improving demand for our products, as evidenced by a book to bill of greater than one in each of our business segments, although we expect macro-economic conditions to cause margin pressure in the near-term.”

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the second quarter of the last fiscal year, which saw revenue rise 38.1%.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the third quarter has moved up from 11 cents a share to 13 cents over the last sixty days. For the fiscal year, the average estimate has been unchanged at 50 cents a share.

Stock Performance: Shares of JDSU were up 3.5% from the previous close.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com