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JDS Uniphase Corporation (JDSU)

  • Dec. 4, 2013, 2:59 PM
    • FBR's Scott Thompson thinks Ciena (CIEN +7%) will deliver a beat-and-raise FQ4 report on Dec. 12, and sees the telecom equipment vendor benefiting from carrier adoption of network architectures that feature "more intelligence and flexibility at the optical layer."
    • Thompson sees carriers building more advanced metro optical networks, replete with data centers that enable services such as content caching, app hosting, and advanced mobile messaging. He points to a recent optical switching deal between Verizon and Ciena as an example of how the latter benefits from this trend, and sees a similar deal with AT&T arriving soon.
    • At the same time, he cautions optical gross margins "could be under pressure," thanks to aggressive pricing from Infinera (INFN +2%), lengthy deployment times, and the adoption of software-defined networking controllers (CYNI is among the companies providing them) that remove some intelligence from the optical layer.
    • Ciena flew higher three months ago following its FQ3 report. The company reported solid demand for its integrated Ethernet switching/optical networking hardware, which now accounts for 56% of revenue.
    • Infinera is following Ciena higher, and so are Finisar (FNSR +5.2%), JDS Uniphase (JDSU +3.1%), Fabrinet (FN +1.8%), and AppliedMicro (AMCC +3.9%).
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  • Nov. 22, 2013, 1:51 PM
    • MKM has lowered its PT for Finisar (FNSR -2.4%) to $27 from $30. Both Finisar and rival JDS Uniphase (JDSU -2.4%) have sold off over the course of the day.
    • Though still up 27% YTD, Finisar is now down 22% from its October high of $26.66. Shares took off this summer after Finisar provided strong guidance on the back of rising datacom (enterprise/data center networking) orders. But both Finisar and JDS  dove earlier this month after major customer Cisco provided bleak guidance, thanks in large part to service provider and emerging markets weakness.
    • JDS is close to its 52-week low of $11.10. Finisar's FQ2 results are due on Dec. 5.
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  • Nov. 19, 2013, 3:46 PM
    • The index's smallest members are in the sights, says Deutsche Bank, as the index makes room for Ingersoll-Rand spinoff Allegion. The possible deletions: J.C. Penney (JCP -0.1%), JDS Uniphase (JDSU -2.3%), Teradyne (TER -2.3%), and Ryder System (R -0.3%).
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  • Nov. 5, 2013, 11:33 AM
    • Fabrinet (FN +11%) has made new 52-week highs after soundly beating FQ1 estimates. The optical component contract manufacturer's FQ2 guidance - revenue of $170M-$174M and EPS of $0.40-$0.42 vs. a consensus of $169M and $0.36 - also isn't hurting.
    • Several optical component vendors are getting a lift from the numbers: FNSR +4.5%. JDSU +1.4%. OPLK +2%. OCLR +1%. NPTN +1.4%.
    • On its CC (transcript), Fabrinet mentioned optical communications sales rose 12% Q/Q, with healthy demand for both telecom and datacom products, and that "the underlying fundamentals of [Fabrinet's] Optical business remain strong" thanks to improving end-market demand and rising sales of advanced components/modules.
    • Strategy chief John Marchetti mentioned datacom sales growth is still outpacing telecom growth, but added telecom sales are starting to "really grow again," and that additional segment growth is expected in FQ2 even as the company maintains a cautious outlook thanks to past disappointments.
    • Those comments are a breath of fresh air for optical component firms, given they come in the wake of disappointing guidance from JDS Uniphase and equipment vendors.
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  • Oct. 31, 2013, 9:13 AM
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  • Oct. 30, 2013, 4:53 PM
    • JDS Uniphase (JDSU) expects FQ2 revenue of $420M-$440M, below a $456.9M consensus. Shares -6% AH. (FQ1 results, PR)
    • Jive Software (JIVE) expects Q4 revenue of $38.5M-$39.5M and EPS of -$0.15 to -$0.17 vs. a consensus of $40.1M and -$0.16. Shares -9.6% AH. (Q3 results, PR)
    • Ruckus (RKUS) expects Q4 revenue of $70M-$73M and EPS of $0.04-$0.05 vs. a consensus of $72.7M and $0.05. Shares -1.8% AH. (Q3 results, PR)
    • ROVI expects 2013 revenue of $585M-$615M and EPS of $1.70-$2.00, largely below a consensus of $613.6M and $1.95. Shares -7.8% AH. (Q3 results, PR)
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  • Oct. 30, 2013, 4:09 PM
    • JDS Uniphase (JDSU): FQ1 EPS of $0.13 beats by $0.01.
    • Revenue of $429M beats by $5.8M. Shares -5.1% AH. (PR)
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  • Oct. 30, 2013, 1:19 PM
    • Several telecom equipment vendors and component suppliers are selling off in sympathy with Calix (CALX -22.7%) and Cyan (CYNI -31.8%), each of which is crashing due to the poor Q4 guidance (I, II) provided with its Q3 results. Both companies are heavily dependent on U.S. telco spending.
    • Calix blamed its guidance on soft demand from tier-2 and tier-3 carriers, while Cyan blamed "cautious order patterns" caused by macro issues. On its CC (transcript), the company noted orders from top customer Windstream will be "substantially down compared to prior quarters."
    • Notable decliners include Finisar (FNSR -7.3%), JDS Uniphase (JDSU -3%), Ruckus (RKUS -6.6%), Applied Micro (AMCC -3.8%), Procera (PKT -4.1%), Allot (ALLT -3.8%), Ciena (CIEN -2.7%), and Alliance Fiber (AFOP -7.7%). JDS and Ruckus report after the bell; Allot and Procera rallied yesterday in response to the former's Q3 report.
    • Several industry names sold off last Thursday due to Infinera's soft Q4 guidance. Infinera said at the time it doesn't "expect significant budget flush or year-end money" from carriers.
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  • Oct. 30, 2013, 12:10 AM
  • Oct. 29, 2013, 5:35 PM
  • Oct. 24, 2013, 11:44 AM
    • Though its Q3 results beat estimates, Infinera (INFN -9.4%) guided on its CC (transcript) for Q4 revenue of $130M-$140M and EPS of breakeven to -$0.04, below a consensus of $141.1M and $0.03. Gross margin is expected to fall back to ~40% after rising to 49% in Q3 (+1000 bps Q/Q and Y/Y).
    • While Infinera expects to benefit from "a number of significant new wins and deployments" in Q4, the company doesn't "expect significant budget flush or year-end money" from carriers.
    • Moreover, while Infinera has won a number of new deals - five new purchase commitments were scored for its DTN-X optical transmission platform - deal timing "remains challenging because of [Infinera's] short lead times and the strategic nature of many of these customer decisions."
    • Ciena (CIEN -7.3%) is selling off on the guidance and commentary, as are many optical component suppliers. Ericsson's numbers might not be helping either. CIEN -7.6%. FNSR -7.2%. JDSU -3.4%. NPTN -2.4%. OCLR -2.3%. AFOP -3.2%.
    • Infinera also disclosed CFO Ita Brennan is resigning, effective Feb. 28, 2014, to work for a startup. The company says it will start a search for a replacement.
  • Oct. 9, 2013, 12:00 PM
    • Adtran (ADTN -13.3%) guides on its Q3 CC for Q4 revenue to drop by a high single-digit to low-teen percentage Q/Q; that's worse than a consensus for a 7% decline.
    • Shares have nosedived on the guidance after trading higher earlier today in response to the telecom equipment vendor's Q3 beat.
    • Several other telecom equipment firms are also seeing sizable declines on a down day for tech, as are some component/chip suppliers. CIEN -4.3%. JDSU -3.9%. FNSR -4.5%. JNPR -2.8%. AMCC -3.8%. DRWI -4.7%. RVBD -3.3%.
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  • Sep. 4, 2013, 9:29 AM
    • Ciena (CIEN) expects FQ4 revenue of $550M-$580M, mostly above a $551.4M consensus.
    • Sales of integrated Ethernet switching/optical networking gear (Converged Packet Optical) rose 3% Q/Q and 23% Y/Y in FQ3, and made up 56% of revenue. That could be a positive for Cyan (CYNI - previous).
    • Ethernet switch sales (packet networking) +14% Q/Q and +104% Y/Y, and now 11% of revenue. Optical transport hardware +15% Q/Q but -26% Y/Y, and 12% of revenue. Software/services +7% Q/Q and +1% Y/Y, and 20% of revenue.
    • As Cisco and Juniper can vouch, demand for metro/edge networking hardware (such as Ciena's converged packet optical gear and Ethernet switches) has been strong lately.
    • Gross margin was 43.6%, +110 bps Q/Q and +400 bps Y/Y, and reversing FQ2's Q/Q decline. It's expected to be in the low-40s in FQ4. Opex -3.5% Q/Q and only +8% Y/Y,  op. margin jumped to 8.2% from 3.7% in FQ2.
    • International customers made up 37% of revenue vs. 43% in FQ2. Two customers (possibly AT&T/Verizon) accounted for 31.8% of revenue, nearly even with FQ2.
    • Infinera (INFN) +6.9%, JDS Uniphase (JDSU) +2.5% and Finisar (FNSR) +2.8% in sympathy.
    • Ciena also jumped following its FQ2 results. Needham's July call was on the mark.
    • FQ3 results, PR
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  • Aug. 28, 2013, 10:49 AM
    • RF component makers Skyworks (SWKS +2.7%), RF Micro (RFMD +2.9%), TriQuint (TQNT +2.5%), and Anadigics (ANAD +2.8%) are outperforming after peer Avago (AVGO +4%) blew past FQ3 estimates and issued strong FQ4 guidance, while predicting it would get a boost from "very strong product ramps in wireless." Other than Anadigics, all of the aforementioned companies are iPhone suppliers.
    • Non-RF Apple suppliers Cirrus Logic (CRUS +7%), OmniVision (OVTI +2.1%), SanDisk (SNDK +2%), and Nam Tai (NTE +3.2%) are also faring well.
    • On the FQ3 CC, Avago asserted once again the technical demands of 4G radios are helping it gain RF component share, and noted its "two largest smartphone customers" (Apple and Samsung) are ramping next-gen platforms (the iPhone 5S/5C and Galaxy Note 3). Avago says it expects its "content in both these platforms continue to improve substantially."
    • On the wireline/networking side, Avago is upbeat about improving core router demand, the adoption of 40G switches within data centers, CyOptics' sales, and strong 10G/40G optical transceiver demand. The last two are positives for JDSU, FNSR, and NPTN.
    • Goldman, RBC, and Canaccord have hiked their Avago PTs.
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  • Aug. 16, 2013, 4:11 PM
    • Piper's Troy Jensen reiterated Overweight ratings on both JDS Uniphase (JDSU +1.6%) and Finisar (FNSR +2.5%), and argued Cisco's issues shouldn't affect the optical component vendors.
    • Jensen assigns a $26 PT to Finisar, which is based on a valuation of 18x 2014E op. income + cash. He considers this multiple appropriate due to his belief the company can deliver at least 18% annual op. income growth during the next 3-5 years.
    • JDS has been pressured over the last two days thanks to Cisco, soft earnings/guidance, and a $575M convertible debt offering. Finisar sold off yesterday on account of Cisco, but flew higher last week following a positive July quarter revenue pre-announcement.
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  • Aug. 15, 2013, 10:37 AM
    • JDS Uniphase (JDSU -4.7%) plans to sell $575M worth of senior convertible notes due 2033 in a private offering. Up to $100M of the proceeds will be used to buy back shares. The rest will be used for "general corporate purposes including potential strategic transactions."
    • In tandem with the offering, JDS will eliminate an existing $250M credit facility, which has no debts outstanding.
    • JDS had no debt on its balance sheet as of June 29, and $516M in cash/investments.
    • Shares fell yesterday in response to JDS' FQ4 revenue miss and light FQ1 guidance, and fell further in AH trading due to Cisco's numbers.
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Company Description
JDS Uniphase Corp (CA) provides network and service enablement solutions and optical products for telecommunications service providers, wireless operators, cable operators, network-equipment manufacturers and enterprises.