JDS Uniphase Corp. (JDSU, Financial) filed Quarterly Report for the period ended 2009-10-03.
JDSU enables broadband and optical innovation in the communications, commercial and consumer markets. JDSU is a leading provider of communications test and measurement solutions and optical products for telecommunications service providers, cable operators, and network equipment manufacturers. JDSU is also a leading provider of innovative optical solutions for medial/environmental instrumentation, semiconductor processing, display, brand authentication, aerospace and defense, and decorative applications. Jds Uniphase Corp. has a market cap of $1.57 billion; its shares were traded at around $7.2 with and P/S ratio of 1.3.
Gross profit in the first quarter of fiscal 2010 decreased 21%, or $31.5 million, to $117.1 million from $148.6 million in the same quarter a year ago. The decrease is primarily due to lower volumes in our Communications and Commercial Optical Products and Communications Test and Measurement segments as a result of the general slowdown in the economy. Gross profit decreased slightly in the Advanced Optical Technologies group due to lower volumes in the Authentication Solutions business. Gross profit excluding amortization expense of acquired developed technologies in the first quarter of fiscal 2010 decreased 20%, or $31.7 million, to $129.4 million from $161.1 million in the first quarter of fiscal 2009.
During the first quarter of fiscal 2010, we recorded $5.1 million in restructuring and related charges which included $3.0 million for severance and benefits primarily in the Communications Test and Measurement segment, $6.0 million for manufacturing transfer cost primarily in the Communications and Commercial Optical Products segment, and ($3.9) million to adjust asset retirement obligations for a restructured lease primarily for the Communications and Commercial Optical Products segment. Forty-nine employees were notified for termination, 16 in manufacturing, 11 in research and development and 22 in selling, general and administrative functions. Of these notified employees, 43 were located in North America, 1 was located in Asia, and 5 were located in Europe. As of October 3, 2009, 42 of these employees have been terminated. Payments related to severance and benefits are expected to be paid off by the third quarter of fiscal 2016.
During the first quarter of fiscal 2009, we recorded $2.6 million in restructuring and related charges which included $2.0 million for severance and benefits primarily in the Communications and Commercial Optical Products segment,, $0.2 million for manufacturing transfer cost primarily in the Communications and Commercial Optical Products segment, and $0.4 million to adjust accruals on previously restructured leases primarily for the Communications and Commercial Optical Products segment. Two hundred three employees were notified for termination, 181 in manufacturing, 19 in research and development and 3 in selling, general and administrative functions. Of these notified employees, 200 were located in North America, 2 were located in Asia, and 1 was located in Europe. As of October 3, 2009, 164 of these employees have been terminated. Payments related to severance and benefits are expected to be paid off by the third quarter of 2010.
During the three months ended October 3, 2009, interest and other income was $3.2 million, a decrease of $2.2 million compared to the same period a year ago. The decrease primarily relates to a reduction in interest income of $5.0 million, primarily due to lower interest rates and lower invested cash balances. This is partially offset by an increase of $2.0 million in dividend income related to an investment accounted for under the cost method.
On September 4, 2009, the Company sold certain non-core assets related to its wholly owned subsidiary da Vinci Systems LLC (da Vinci). Da Vinci represented a separate component of the Communications Test and Measurement segment and is considered as discontinued operations for financial reporting purposes. The sale generated total gross proceeds of $2.5 million and a gain of $0.2 million, which was recognized in the first fiscal quarter of 2010. The Company transferred net liabilities of $0.1 million, which comprised of $1.0 million in net property plant and equipment, $1.0 million in deferred revenue, and $0.1 million in warranty reserve. Net revenue for the three months ended October 3, 2009 and September 27, 2008 were $0.8 million and $3.5 million, respectively. Net loss for the three months ended October 3, 2009 and September 27, 2008 were $(1.4) million and $(0.4) million, respectively. Total loss from discontinued operations for the three months ended October 3, 2009 and September 27, 2008 were $(1.2) million and $(0.4) million, respectively. There is no tax effect associated with this transaction.
Read the The complete ReportJDSU is in the portfolios of Wilbur Ross of Invesco Private Capital, Inc..
JDSU enables broadband and optical innovation in the communications, commercial and consumer markets. JDSU is a leading provider of communications test and measurement solutions and optical products for telecommunications service providers, cable operators, and network equipment manufacturers. JDSU is also a leading provider of innovative optical solutions for medial/environmental instrumentation, semiconductor processing, display, brand authentication, aerospace and defense, and decorative applications. Jds Uniphase Corp. has a market cap of $1.57 billion; its shares were traded at around $7.2 with and P/S ratio of 1.3.
Highlight of Business Operations:
Statements contained in this Quarterly Report on Form 10-Q which are not historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. A forward-looking statement may contain words such as anticipates that, believes, can impact, continue to, estimates, expects to, intends, may, plans, potential, projects, to be, will be, will continue to be, continuing, ongoing, or the negative thereof or other comparable terminology regarding beliefs, plans, expectations or intentions regarding the future. Forward-looking statements include statements regarding: our expectations related to the impact of recent accounting pronouncements on our consolidated financial statements; our expectation related to lease expenses through fiscal 2018; our belief that the Companys current process for writing down inventory appropriately balances the risk in the marketplace with a fair representation of the realizable value of the Companys inventory; our expectation that the zero coupon convertible notes will be retired within one year; our plan to continue to take advantage of opportunities to further reduce costs through targeted, customer-driven restructuring events; our expectation that payments related to severance and benefits will be paid off in fiscal 2010; our expectation to recognize $24.1 million of unrecognized stock-based compensation cost related to stock options over an estimated amortization period of 2.5 years; our expectation to amortize $0.3 million of unrecognized stock-based compensation cost related to our ESPP in the third quarter of fiscal 2010; our expectation to amortize $39.8 million of unrecognized stock-based compensation cost related to Full Value Awards over an estimated amortization period of 2.1 years; our expectation that the Company will have to contribute approximately $0.3 million to defined benefit plans in fiscal 2010; our expectation to incur cash outlays of approximately $5.0 million related to our defined benefit pension plan in fiscal 2010; our belief that the ultimate outcome of the Dutch and Texas tax audits will not have a material adverse effect on our financial position, cash flows or overall trends in results in operations; our expectation that the Companys potential tax liability related to a Texas franchise tax audit will be from zero to $36.9 million, plus interest and penalties; managements belief that the factual allegations and circumstances underlying the securities actions, derivative actions, and the ERISA class action are without merit; our expectation that we will continue to encounter a number of industry and market structural risks and uncertainties that will limit our business climate and market visibility; our expectation that the current trend of consolidation in the communications industry will continue; our expectation that risks related to manufacturing transitions of our North American assembly manufacturing program will continue and are expected to diminish over the next several quarters; our expectation that the introduction of new product programs and introductions will continue to incur higher start-up costs and increased yield and product quality risk among other issues; our belief that investment in research and development (R&D) is critical to attaining our strategic objectives; our continued efforts to reduce total operating spending; our intention to continue to address our selling, general and administrative (SG&A) expenses and reduce these expenses as and when opportunities arise; our expectations regarding future SG&A expenses; our expectation that none of the non-core SG&A expenses will have a material adverse impact on our financial condition; restructuring estimates related to sublease income or lease settlements; our assumptions related to pension and postretirement benefits; our belief that our assumptions related to discount rate movements in connection with calculating benefit costs is conservative; our estimates related to post-acquisition investment in research and development and the projected completion date of post-acquisition research and development; our belief that our existing cash balances and investments will be sufficient to meet our liquidity and capital spending requirements at least through the next 12 months; and our expectation that gains and losses on derivatives will be offset by re-measurement gains and losses on the foreign currency dominated assets and liabilities.Gross profit in the first quarter of fiscal 2010 decreased 21%, or $31.5 million, to $117.1 million from $148.6 million in the same quarter a year ago. The decrease is primarily due to lower volumes in our Communications and Commercial Optical Products and Communications Test and Measurement segments as a result of the general slowdown in the economy. Gross profit decreased slightly in the Advanced Optical Technologies group due to lower volumes in the Authentication Solutions business. Gross profit excluding amortization expense of acquired developed technologies in the first quarter of fiscal 2010 decreased 20%, or $31.7 million, to $129.4 million from $161.1 million in the first quarter of fiscal 2009.
During the first quarter of fiscal 2010, we recorded $5.1 million in restructuring and related charges which included $3.0 million for severance and benefits primarily in the Communications Test and Measurement segment, $6.0 million for manufacturing transfer cost primarily in the Communications and Commercial Optical Products segment, and ($3.9) million to adjust asset retirement obligations for a restructured lease primarily for the Communications and Commercial Optical Products segment. Forty-nine employees were notified for termination, 16 in manufacturing, 11 in research and development and 22 in selling, general and administrative functions. Of these notified employees, 43 were located in North America, 1 was located in Asia, and 5 were located in Europe. As of October 3, 2009, 42 of these employees have been terminated. Payments related to severance and benefits are expected to be paid off by the third quarter of fiscal 2016.
During the first quarter of fiscal 2009, we recorded $2.6 million in restructuring and related charges which included $2.0 million for severance and benefits primarily in the Communications and Commercial Optical Products segment,, $0.2 million for manufacturing transfer cost primarily in the Communications and Commercial Optical Products segment, and $0.4 million to adjust accruals on previously restructured leases primarily for the Communications and Commercial Optical Products segment. Two hundred three employees were notified for termination, 181 in manufacturing, 19 in research and development and 3 in selling, general and administrative functions. Of these notified employees, 200 were located in North America, 2 were located in Asia, and 1 was located in Europe. As of October 3, 2009, 164 of these employees have been terminated. Payments related to severance and benefits are expected to be paid off by the third quarter of 2010.
During the three months ended October 3, 2009, interest and other income was $3.2 million, a decrease of $2.2 million compared to the same period a year ago. The decrease primarily relates to a reduction in interest income of $5.0 million, primarily due to lower interest rates and lower invested cash balances. This is partially offset by an increase of $2.0 million in dividend income related to an investment accounted for under the cost method.
On September 4, 2009, the Company sold certain non-core assets related to its wholly owned subsidiary da Vinci Systems LLC (da Vinci). Da Vinci represented a separate component of the Communications Test and Measurement segment and is considered as discontinued operations for financial reporting purposes. The sale generated total gross proceeds of $2.5 million and a gain of $0.2 million, which was recognized in the first fiscal quarter of 2010. The Company transferred net liabilities of $0.1 million, which comprised of $1.0 million in net property plant and equipment, $1.0 million in deferred revenue, and $0.1 million in warranty reserve. Net revenue for the three months ended October 3, 2009 and September 27, 2008 were $0.8 million and $3.5 million, respectively. Net loss for the three months ended October 3, 2009 and September 27, 2008 were $(1.4) million and $(0.4) million, respectively. Total loss from discontinued operations for the three months ended October 3, 2009 and September 27, 2008 were $(1.2) million and $(0.4) million, respectively. There is no tax effect associated with this transaction.
Read the The complete ReportJDSU is in the portfolios of Wilbur Ross of Invesco Private Capital, Inc..
