Viavi: SOTP Suggests Upside; M&A Reshuffling The Key Question
Apr. 30, 2014, 5:40 PM
Apr. 30, 2014, 5:09 PM
- In addition to missing FQ3 estimates, JDS Uniphase (JDSU -6.9% AH) is guiding for FQ4 revenue of $425M-$445M and EPS of $0.10-$0.14, below a consensus of $459M and $0.17.
- The company blames its FQ3 miss on "later-than-expected carrier orders." Optical communications product sales grew 7.1% Y/Y, slower than FQ2's 12.1% clip. Network and service enablement (test equipment) sales fell 1.1% after declining 0.2% in FQ2.
- Peer Oplink (OPLK -6.7% AH) also posted an FQ3 miss, while adding it's seeing "a bit of softness" in its optical business. FQ4 guidance is for revenue of $48M-$52M and EPS of $0.05-$0.11, below a consensus of $53.3M and $0.17.
- Finisar (FNSR) is down 1.1% AH. Others that might slip: OCLR, AFOP, NPTN, FN.
Apr. 30, 2014, 4:07 PM
- JDS Uniphase Corporation (JDSU): FQ3 EPS of $0.10 misses by $0.01.
- Revenue of $418M (+3.1% Y/Y) misses by $13.73M.
Apr. 29, 2014, 5:35 PM
- AEL, ANAD, ARAY, ARII, ASH, ATML, ATW, AXTI, BCOV, BDN, BGC, BMR, BYD, CACI, CAVM, CBG, CBT, CGNX, CHMT, CJES, CMO, CNW, COHR, CRL, CSII, CW, CWT, DOX, DRE, DRIV, EDMC, EGN, ELGX, ELX, EPAM, EQIX, EQR, EXL, FBHS, FLEX, FLTX, FNF, FORM, GDOT, GLUU, HOLX, HOS, HR, INT, IO, IPI, IRF, IRG, ISIL, JDSU, JKHY, KEG, KEX, KONA, KS, KTOS, LNC, LOCK, LOPE, MAA, MANT, MASI, MDAS, MDU, MET, MTGE, MUR, NBIX, NEWP, NGD, OILT, OPLK, PACB, PDM, PEIX, PFPT, POL, PPC, PRAA, QUIK, RKUS, ROVI, RRTS, SAM, SFLY, SGI, SPRT, SSS, STMP, TEX, TSO, TSRO, TTEK, TTMI, UNTD, VNTV, WBMD, WDC, WLL, WMB, WMGI, WPZ, WTW, YELP.
Apr. 2, 2014, 9:52 AM
- Alliance Fiber (AFOP +13.8%) expects to report Q1 revenue of $24.8M, +104% Y/Y and soundly above prior guidance of $22.5M (it's also the consensus).
- The announcement comes less than two months after shares tumbled due to a Q4 miss. Full Q1 results arrive on April 24.
- Needham's bullish March 25 coverage launch was well-timed. In general, Street sentiment towards optical component and networking hardware vendors has been improving, thanks in part to strong numbers from Ciena and Infinera.
- Optical component peers are trading moderately higher: FNSR +2.3%. JDSU +1.3%. NPTN +1.6%. OCLR +2.6%.
Mar. 28, 2014, 9:50 AM
- InvenSense (INVN +3%) has been upgraded to Buy by Roth.
- Ciena (CIEN -1.4%) and JDS Uniphase (JDSU -0.4%) have been cut to Sector Perform by RBC. MKM upgraded JDS a week ago.
- Veeco (VECO +4.6%) has been upgraded to Buy by CLSA. UBS upgraded shares earlier in March.
- Avago (AVGO +1.9%) has been started at Outperform by Pac Crest.
- Telecom Italia (TI +2.2%) has been upgraded to Buy by Berenberg.
- Integrated Silicon (ISSI +3.4%) has been started at Buy by B. Riley.
Mar. 21, 2014, 9:43 AM
Mar. 12, 2014, 6:38 PM
- Goldman's upgrades of Infinera (INFN +14.9%) and Calix (CALX +2.8%) wound up sparking a broader rally telecom equipment and optical component makers. Notable gainers: FNSR +6.2%. UBNT +6.7%. CYNI +5.1%. CIEN +3.8%. JDSU +5.4%. AFOP +3.4%. NPTN +3.4%. ADTN +2.8%. FN +2.2%.
- Goldman's Simona Jankowski believes Infinera, which recently lost a major Verizon deal to Alcatel-Lucent, has regained Level 3 as a client. She also estimates 100G optical system shipments "have approximately a 15% point gross margin advantage" relative to 10G counterparts, and sees this delta boosting Infinera's margins as 100G "increases from mid-50% of total product revenue in 2013 to mid-70% in 2014."
- Regarding Calix, Jankowski reports seeing better spending trends among the tier 2/3 carriers the company leans heavily on, and thinks 2014/2015 estimates now "more accurately reflect" Calix's growth trajectory.
- Today's gains come as the optical networking industry's OFC 2014 conference continues. As usual, the conference has seen a slew of product launches. Ciena has followed Infinera (previous) in launching software tools for intelligently controlling a network's optical layers, and JDS Uniphase is showing off several new components and modules.
Jan. 31, 2014, 1:56 PM
- With help from an upgrade to Outperform from William Blair, JDS Uniphase (JDSU +6.9%) is shooting higher following its FQ2 beat, which was accompanied by strong FQ3 guidance and news of two acquisitions.
- Optical component peers Finisar (FNSR +4.5%), Oclaro (OCLR +5.7%), and NeoPhotonics (NPTN +6.5%) are following JDS higher. The fact JDS' optical communications product sales rose 12.1% Y/Y (up from 8.1% in FQ1) is likely going over well.
- Blair's Dmitry Netis is upbeat about JDS' improving carrier test equipment/software business: He expects it will return to positive growth in FQ3 after years of declines, grow 2.5% in FY14 (ends in June), and grow 9% in FY15.
- MKM (Neutral, PT upped to $15 from $13) observes rising 100G optical component demand (previous) is giving JDS a lift; Finisar and NeoPhotonics also have solid 100G exposure.
- Barclays is pleased FQ3 revenue is expected to grow 6% excluding a gesture recognition business affected by Xbox One/Kinect seasonality, but nonetheless considers Finisar a better investment due to its "cleaner" datacom exposure.
- CC transcript
Jan. 31, 2014, 9:09 AM
Jan. 30, 2014, 5:21 PM
- JDS Uniphase (JDSU) expects FQ3 revenue of $420M-$440M vs. a consensus of $425.9M.
- JDS also announces it's acquiring the assets of Trendium, a developer of analytics and customer experience optimization software for mobile carriers, and Time-Bandwidth Products, a maker of high-power lasers for industrial/scientific markets. Terms are undisclosed.
- Look for JDS to cross-sell Trendium's products to carrier test equipment customers. Carrier interest in advanced mobile analytics solutions has been growing in tandem with the mobile data/app boom. IBM made an acquisition in this space three months ago.
- JDS' FQ2 beat was driven in part by a gross margin of 48.5%, +220 bps Q/Q and +50 bps Y/Y. Optical communications product sales (39% of revenue) rose 12.1% Y/Y, and commercial optical sales (44% of revenue) 6.6%.
Jan. 30, 2014, 4:19 PM
- JDS Uniphase Corporation (JDSU): FQ2 EPS of $0.19 beats by $0.05.
- Revenue of $447.6M (+4.2% Y/Y) beats by $13.9M.
- Shares +4.5%.
Jan. 30, 2014, 12:10 AM| Jan. 30, 2014, 12:10 AM | 2 Comments
Jan. 29, 2014, 5:35 PM
Jan. 22, 2014, 4:05 PM
- After reporting an EPS beat and in-line revenue this morning, Adtran (ADTN +4.5%) guided on its CC for Q1 revenue to be flat to down by a mid-single digit percentage Q/Q.
- Though the consensus is for revenue to be down less than 1% Q/Q to $158.8M, investors are taking heart in Adtran's forecast, given it follows warnings from several telecom equipment names.
- A slew of telecom equipment and component/chip vendors followed Adtran higher today. JDSU +3.1%. NPTN +4.6%. FNSR +2.3%. [CIEN] +2.1%. ALLT +2.6%. PKT +1.8%. CALX +1.7%.
Jan. 9, 2014, 12:59 PM
- Calix's Q4 warning, which has come in the wake of warnings (I, II) from fellow telecom equipment suppliers Cyan (CYNI -2.4%) and Procera (PKT -2.6%), has sparked a general selloff in telecom equipment and component/chip names. A Deutsche downgrade of Alcatel-Lucent, one of the best-performing names in the space in 2013, could also be playing a role.
- Calix, Cyan, and Procera all have considerable exposure to U.S. carriers not named AT&T or Verizon. While Calix didn't mention which region(s) are responsible for its warning, Cyan blamed an 88% Q/Q drop in sales to U.S. telco/top customer Windstream, and Procera blamed soft demand from U.S. cable providers.
- Notable decliners: CSCO -1.1% JDSU -5.2%. ADTN -5.1% (competes with Calix). FNSR -4.2% (just announced an acquisition). INFN -2.9%. AMCC -2.5%. CIEN -2.4%. BSFT -6.1%. SONS -2.1%.
- The group sold off a month ago after Cisco cut its long-term growth outlook.
Viavi Solutions, Inc. engages in the provision of network and service enablement solutions and manufacture of optical products. It operates through the following segments: Network and Service Enablement; Communications and Commercial Optical Products; and Optical Security and Performance... More
Industry: Communication Equipment
Country: United States
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