JDS Uniphase Corporation Earnings: Swing to a Loss After Two Straight Profit Quarters

S&P 500 (NYSE:SPY) component JDS Uniphase Corporation (NASDAQ:JDSU) reported its results for the first quarter. 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 First Quarter

Results: Reported a loss of $5.8 million (3 cents per diluted share) in the quarter. JDS Uniphase Corporation had a net income of $100,000 or breakeven on a per share basis in the year earlier quarter.

Revenue: Rose 3.8% to $420.8 million from the year earlier quarter.

Actual vs. Wall St. Expectations: The company reported adjusted net income of 18 cents a share. By that measure, it beat the mean analyst estimate of 13 cents a share. It beat the mean revenue estimate of $415 million.

Quoting Management: “I am very pleased with our operating results during this period of macroeconomic uncertainty,” said Tom Waechter, JDSU’s President and Chief Executive Officer. “Although revenue levels are being restricted by these global headwinds, the mix of our highly innovative and differentiated products continues to grow with a favorable impact on gross margin. This combined with strong cost controls allowed us to significantly exceed expectations for operating margins. I am also happy to announce that all JDSU, Thailand employees are safe from the flooding in southern Thailand and we have added additional employees there to help meet our customer’s needs as best as possible under these difficult conditions.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 20.7% to $471.8 million in the fourth quarter of the last fiscal year. The figure rose 36.6% in the third quarter of the last fiscal year from the year earlier and climbed 38.1% in the second quarter of the last fiscal year from the year-ago quarter.

The company’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $9.3 million in the fourth quarter of the last fiscal year, a profit of $38.6 million in the third quarter of the last fiscal year and $23.6 million in the second of the last fiscal year.

Margins rose in the fourth quarter of the last fiscal year after falling the quarter before. Gross margin rose four percentage points to 46.8% from the quarter earlier quarter. In the third quarter of the last fiscal year, the figure rose 1.1 percentage points to 43.3% from the year earlier quarter.

Competitors to Watch: EXFO Electro-Optical Engineering (NASDAQ:EXFO), Finisar Corporation (NASDAQ:FNSR), Ixia (NASDAQ:XXIA), Oclaro, Inc. (NASDAQ:OCLR), Spirent Communications Plc (SPMYY), Tollgrade Communications, Inc. (NASDAQ:TLGD), Oplink Communications, Inc (NASDAQ:OPLK), Ciena Corporation (NASDAQ:CIEN), Agilent Technologies Inc. (NYSE:A), and RiT Technologies Ltd. (NASDAQ:RITT).

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(Source: Xignite Financials)