Thu, Mar. 5, 4:27 PM
- Though its FQ3 results were nearly in-line, Finisar (NASDAQ:FNSR) is guiding for FQ4 revenue of $310M-$330M and EPS of $0.22-$0.28, mostly above a consensus of $307.9M and $0.23. Compared with FQ3, FQ4 results will benefit from an extra, but be hurt by the timing of the Chinese New Year.
- Datacom revenue rose 8.5% Q/Q and 11.4% Y/Y to $234.4M, lifted by strong wireless transceiver and 40G/100G component demand; Internet data center buildouts likely boosted the latter. Telecom revenue (under pressure for a few quarters) fell 11.3% Q/Q and 14% Y/Y to $71.9M. In addition to weak carrier capex, the Q/Q drop was caused annual price cuts.
- Operating expenses rose 3% Y/Y to to $63.2M (compares with 4% revenue growth). Gross margin fell to 30% from 31.1% in FQ2 and 37.2% a year earlier (price pressure). FQ4 GM guidance is at 30%.
- Finisar is up to $21.35 AH. Rival JDS Uniphase (NASDAQ:JDSU) is following Finisar higher, rising to $13.51.
- Finisar's FQ3 results, PR, earnings slides (.pdf)
Fri, Jan. 30, 2:56 PM
- Optical networking/carrier Ethernet hardware vendor Ciena (CIEN -4%), optical component suppliers Finisar (FNSR -2.4%) and Oclaro (OCLR -2%), and telecom chipmakers AppliedMicro (AMCC -5.9%) and Cavium (CAVM -4.4%) are all off after component vendor JDS Uniphase (JDSU -7.4%) missed FQ2 estimates and provided soft FQ3 guidance.
- On its CC (transcript), JDS observed its FQ2 network enablement (test equipment) and service enablement (telecom software/services) revenue fell a combined 8% Y/Y due to "weaker carrier spending and no budget flush in historically stronger December quarter." Network enablement is expected to remain soft in seasonally weak FQ3 as customers weigh their 2015 spending plans. Service enablement is expected to grow ~24%, after growing 16.6% in FQ2.
- AppliedMicro is down 10% since providing a soft FQ4 EPS guidance (-$0.09 vs. a -$0.07 pre-earnings consensus) on Tuesday afternoon to go with an FQ3 beat. Cavium is giving back the gains it saw yesterday after beating Q4 estimates and providing strong Q1 guidance.
Thu, Jan. 29, 5:21 PM
- JDS Uniphase (NASDAQ:JDSU) expects FQ3 revenue of $418M (+/- $10M) and EPS of $0.09 (+/- $0.02), below a consensus of $431.3M and $0.14.
- Not surprisingly (previous), JDS states weak U.S. carrier spending weighed on FQ2 results. This weakness led network enablement (test equipment) revenue to fall 14.2% Y/Y to $133.7M. Optical component sales fell 4.2% to $167.1M, but laser sales (boosted by industrial demand) rose 70.2% to $40M.
- Service enablement (telecom software/services) revenue rose 16.6% to $45.7M, and optical security/performance products (includes Xbox Kinect components) fell 7.3% to $50.6M.
- Gross margin rose 10 bps Q/Q and 60 bps Y/Y to 49.1%. Op. margin was 9.9%, +80 bps Q/Q but -110 bps Y/Y. JDS expects to finish spinning off its optical component/laser ops (CCOP) by the end of calendar Q3.
Thu, Jan. 29, 4:06 PM| Comment!
Wed, Jan. 28, 5:35 PM
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Fri, Jan. 23, 10:32 AM
- Infinera (INFN +17.7%) knocked the cover off the ball yesterday afternoon, soundly beating Q4 estimates and issuing strong Q1 guidance on the back of growing demand for its DTN-X optical transmission/switching platform for 100G deployments.
- Rival Ciena (CIEN +3.7%) and optical component vendors JDS Uniphase (JDSU +2.7%) and Finisar (FNSR +2.3%) are rallying in response. The companies followed equity markets higher yesterday after Verizon guided for its 2015 capex to be slightly above 2014 levels (contrasts with AT&T's planed capex cut).
- On its CC (transcript), Infinera said it added 10 new invoiced DTN-X customers in Q4 (3 new to Infinera altogether), raising its total to 59, and that nearly half of all DTN-X clients are now opting for the company's Instant Bandwidth rapid provisioning tech. Initial revenue for the Cloud Xpress point-to-point interconnect platform was received in December, and 8 customer commitments have been received to date.
Oct. 29, 2014, 4:24 PM
- JDS Uniphase (NASDAQ:JDSU) expects FQ2 revenue of $445M (+/- $12M) and EPS of $0.15 (+/- $0.03), below a consensus of $445.9M and $0.17 at the midpoints. Given the bad news seen by many peers and suppliers, investors aren't upset with the numbers.
- Consumer/commercial optical products (about to be spun off) saw revenue rise 6.3% Q/Q and 2.3% Y/Y in FQ1 to $209.3M. Network enablement (test equipment) -19.8% and -8.5% to $132.8M; service enablement (boosted by M&A) +10.6% and +79.9% to $48.2M; optical security/performance +1.6% and -17.5% to $43.3M.
- Gross margin was 49%, -100 bps Q/Q and +270 bps Y/Y. GAAP opex +9% Y/Y to $195.1M.
- FQ1 results, PR
Oct. 29, 2014, 4:10 PM| Comment!
Oct. 24, 2014, 12:32 PM
- Though Ericsson (ERIC -3%) beat Q3 estimates, the mobile infrastructure giant stated North American business activity "slowed down during the quarter as operators currently focus on cash flow optimization." It added North American spending patterns make it tough to judge near-term demand.
- Ericsson's North American sales fell 3% Y/Y to $1.93B, partly offsetting strong growth in China, India (+56%), the Middle East (+38%), and other emerging markets. Top-line figures were boosted some by M&A.
- AT&T and Verizon have been taking cautious approaches to capex, and Sprint (though investing heavily in 4G following the SoftBank deal) has been looking to cut costs under new CEO Marcelo Claure. The U.S. and Japan have been ahead of many other developed markets in ramping 4G coverage.
- Juniper (JNPR -6.3%) offered light Q4 guidance two weeks after delivering a Q3 warning, and reported its service provider sales were down 6% Y/Y due to soft demand from Asia-Pac, EMEA, and (especially) U.S. carriers.
- When the world's #2 carrier router vendor was asked on the CC (transcript) about 2015 sales, CEO Shaygan Keradpir admitted Juniper has poor near-term visibility, and that a rebound could take time. "Because we think these cycles typically take 2 to 4 quarters ... our planning assumption is that growth will return in the second half of 2015."
- Nokia and Infinera recently offered more positive numbers/commentary. Bulls have argued strong data/video traffic growth will lift capex. Bears have argued soft (if not negative) carrier revenue growth will continue pressuring spending.
- Decliners: ALU -1.6%. JDSU -2%. INFN -3.1%. CIEN -2.5%. CALX -2.5%. FNSR -1.8%. ADTN -1.5%. The Nasdaq is up 0.4%.
Sep. 4, 2014, 4:20 PM
- Finisar (NASDAQ:FNSR) expects FQ2 revenue of $305M-$320M and EPS of $0.23-$0.27, below a consensus of $337.5M and $0.35.
- The company blames an expected Q/Q drop in wireless transceiver sales following a strong FQ1, along with weak carrier spending and "a decrease in demand from several datacom customers with lumpy order patterns." Several analysts have already voiced concerns (I, II) about weak near-term sales.
- FQ1 datacom revenue +31% Y/Y to $241.2M. Telecom revenue +6% to $86.4M.
- Gross margin -220 bps Q/Q and -310 bps Y/Y to 32%. FQ2 GM guidance is at 31%-32%. Opex +5.4% Y/Y to $69.4M.
- Shares are halted. Rival JDS Uniphase (NASDAQ:JDSU) is down 0.9% AH. Finisar and JDS both sold off in afternoon trading after Ciena issued soft guidance this morning, while blaming the timing of an AT&T contract.
- FQ1 results, PR, earnings slides (.pdf)
Aug. 13, 2014, 2:45 PM
- B. Riley and Piper have downgraded JDS Uniphase (JDSU -8.9%) following its light Sep. quarter outlook. Each cites the impact of soft carrier spending.
- B. Riley's Dave Kang (downgrade to Neutral) notes the AT&T/DirecTV deal has affected Ma Bell's spending (previous), and that industry demand is pressured by a transition to software-defined networking (SDN) architectures that's still in its early stages.
- Kang: "In hindsight, we significantly under-estimated the potential impact of the SDN transition on the telecom equipment industry." He notes the transition is hurting JDS' test equipment/software sales (expected to fall to $160M-$175M in FQ1 from $199M in FQ4) more than its optical component sales. Optical component/laser division sales are expected to total $200M-$210M in FQ1 vs. $196.9M in FQ4.
- On the CC (transcript), CEO Tom Waechter admitted North American carriers "have ratcheted down wireline spending" (echoes of Juniper), and that wireless investments "have been tepid due to rapid changes in network technology architectures." On the other hand, he states component demand "remains healthy with notable strength in Datacom, 100G modulators and China's infrastructure spend."
- Ciena (CIEN -2.7%) and Fabrinet (FN -3%) have joined the ranks of companies following JDS lower. Cisco reports after the bell.
Aug. 12, 2014, 4:49 PM
- Though it beat FQ4 estimates, JDS Uniphase (NASDAQ:JDSU) is guiding for FQ1 revenue of $405M-$425M and EPS of $0.08-$0.12, below a consensus of $440.9M and $0.14.
- FQ4 gross margin was 50%, +240 bps Q/Q and +390 bps Y/Y. Opex rose 17% Y/Y to $226M. $160M was spent on buybacks in FY14.
- Network service & enablement revenue (test equipment/software) +10.2% Y/Y to $209.1M; optical communications (components/modules) +1.4% to $156.2M; lasers +44.3% to $40.7M; optical security/performance -13.4% to $42.6M. Test equipment and laser sales were respectively boosted by the Trendium and Time-Bandwidth acquisitions.
- Finisar (NASDAQ:FNSR) is following JDS lower.
- FQ4 results, PR
Aug. 12, 2014, 4:08 PM| Comment!
Aug. 11, 2014, 5:35 PM
Jul. 23, 2014, 1:45 PM
- Juniper's (JNPR -9.8%) soft Q3 guidance, along with its related commentary on U.S. telco demand, is taking a toll on fellow telecom equipment suppliers Cisco (CSCO -1.2%), Ciena (CIEN -3.2%), Cyan (CYNI -2.5%), Zhone (ZHNE -6.5%) Ruckus (RKUS -1.6%), and Sonus (SONS -3.8%).
- Optical component vendors JDS Uniphase (JDSU -2.9%) and Finisar (FNSR -2%) are also off, as are several chipmakers (previous) with heavy networking/telecom exposure.
- On its CC (transcript), Juniper stated "market dynamics including M&A activity" are affecting the "sequencing and timing" of U.S. carrier projects. Jefferies reported in June AT&T has significantly cut its wireline capex in the wake of the DirecTV deal.
- There has been speculation AT&T is keeping a lid on wireline capex ahead of the full rollout of its ambitious Domain 2.0 initiative, which will feature the launch of software-defined networking (SDN) and network functions virtualization (NFV) platforms.
- Juniper insists it remains well-positioned with the aforementioned U.S. carriers, and that it has "major design wins" for next-gen projects. The company adds demand remains healthy with U.S. federal, cable, and Internet clients.
- The company's router revenue rose 7% Y/Y in Q2 to $617.8M, and its switch revenue rose 25% to $199.8M. Security product revenue fell 8% to $111.6M. The Junos Pulse VPN software ops (about to be sold for $250M) contributed $31.4M in revenue ($15.9M product, $15.5M service).
Jun. 12, 2014, 4:19 PM
- Finisar (FNSR) expects FQ1 revenue of $320M-$335M, above a $317M consensus. But EPS guidance of $0.30-$0.34 is below a $0.41 consensus.
- Gross margin pressure is responsible for both the guidance and FQ4's EPS miss. FQ4 GM was 34.2%, +200 bps Y/Y but -300 bps Q/Q and below guidance of 35.5%. GM is expected to fall to 32% in FQ1.
- Finisar blames the FQ4 margin weakness on telecom product price cuts and the impact of recently-acquired u2t Photonics, whose products carry a lower GM.
- Opex +4.3% Y/Y in FQ4 to $65.9M, well below rev. growth of 25.7%. A 39.1% Y/Y increase in datacom product sales (boosted by the investments of Web/cloud service providers) offset a 2.5% drop in telecom sales, and helped drive the revenue beat.
- JDS Uniphase (JDSU) is following Finisar lower. Other optical component firms that could be hit: OPLK, OCLR, FN, NPTN.
- FQ4 results, PR
JDSU vs. ETF Alternatives
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.
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