JDS Uniphase Corp. (JDSU, Financial) filed Quarterly Report for the period ended 2010-01-02.
Jds Uniphase Corp. has a market cap of $1.75 billion; its shares were traded at around $8.035 with and P/S ratio of 1.4. JDSU is in the portfolios of Paul Tudor Jones of The Tudor Group, Bruce Kovner of Caxton Associates, Wilbur Ross of Invesco Private Capital, Inc., George Soros of Soros Fund Management LLC.
Net revenue in the second quarter of fiscal 2010 decreased 3%, or $10.9 million, to $342.9 million from $353.8 million in the same quarter a year ago. The decrease is primarily due to a decrease in demand for our CCOP products related to the recent global economic downturn as our customers slowed deployments, offset by increases in our other segments. Additionally, the second quarter of fiscal 2009 included the non-recognition of approximately $10.0 million of a significant customers revenue due to a bankruptcy protection filing. The decrease in our CCOP segment was mainly driven by the decline in demand for our Modules and Submarine products. The Module decline was primarily due to one customer which had significant volumes in the second quarter
Net revenue in the six months ended January 2, 2010 decreased 12%, or $90.3 million, to $640.7 million from $731.0 million in the comparable period in the prior year. The decrease is primarily due to a decrease in demand for our CCOP and Communications Test and Measurement products. The decrease in our CCOP segment was mainly driven by the decline in demand for our Modules and Submarine products. Module revenues declined due to a reduction in sales to six of our largest customers as a result of the global economic slowdown. The Submarine product line has historical cyclical demand swings due to the nature of the deployments. The decrease in our Communications Test and Measurement segment was mainly due to lower volume in our Instruments business as a result of the global economic slowdown. Our AOT business experienced demand increases in 3D, Aerospace, Defense, and Currency products, partially offset by a reduction in transaction card volume and average sale price declines as a result of continued softness in global credit markets and the reluctance of financial institutions to issue new credit cards driven the economic downturn.
Gross profit in the second quarter of fiscal 2010 increased 2%, or $2.9 million, to $138.2 million from $135.3 million in the same quarter a year ago The increase primarily results from the second quarter of fiscal 2009 including both a $4.9 million charge for the impairment of acquired developed technology and the non-recognition of approximately $10.0 million of a significant customers revenue due to a bankruptcy protection filing. Offsetting the effect of these charges this year includes decreases due to lower volumes in our Communications and Commercial Optical Products and the Communications Test and Measurement segments as a result of the global economic slowdown and increased pricing pressure on established products. Gross profit increased slightly in the AOT group due to higher volumes in the Flex business, which carries stronger margins than the Custom Optics and Authentication Solutions divisions.
Gross profit in the six months ended January 2, 2010 decreased 10%, or $28.6 million, to $255.3 million from $283.9 million in the comparable period in the prior year. The decrease is primarily due to the global economic slowdown and its impact on our customer demand and pricing, which was offset by the impairment of acquired developed technology and non-recognition of revenue in the second quarter of fiscal 2009 discussed above. We continue to benefit from lower costs associated with our outsourcing initiative. Such benefits are partially offset by the transition costs as a result of the outsourcing initiative.
R&D and SG&A expenses for the second quarter of fiscal 2010 decreased 7%, or $9.6 million to $136.2 million, from $145.8 million in the same period a year ago. The decrease for the three months ended January 2, 2010 is mainly due to lower project spending, headcount reduction and other cost reduction efforts across all segments. R&D and SG&A expenses for the six months ended January 2, 2010 decreased 11%, or $32.5 million to $268.2 million, from $300.7 million in the same period a year ago. The decrease for the six months ended January 2, 2010 is primarily due to lower project spending, with fiscal 2009 including expenses related to an Oracle upgrade program, together with headcount reduction and other cost reduction efforts across all segments.
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Jds Uniphase Corp. has a market cap of $1.75 billion; its shares were traded at around $8.035 with and P/S ratio of 1.4. JDSU is in the portfolios of Paul Tudor Jones of The Tudor Group, Bruce Kovner of Caxton Associates, Wilbur Ross of Invesco Private Capital, Inc., George Soros of Soros Fund Management LLC.
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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 through fiscal 2016; our expectation to recognize $19.1 million of unrecognized stock-based compensation cost related to stock options over an estimated amortization period of 2.3 years; our expectation to amortize $0.1 million of unrecognized stock-based compensation cost related to our ESPP in the third quarter of fiscal 2010; our expectation to amortize $34.3 million of unrecognized stock-based compensation cost related to Full Value Awards over an estimated amortization period of 2.0 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 $4.9 million related to our defined benefit pension plan in fiscal 2010; our belief that the ultimate outcome of the Texas tax audit 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.Net revenue in the second quarter of fiscal 2010 decreased 3%, or $10.9 million, to $342.9 million from $353.8 million in the same quarter a year ago. The decrease is primarily due to a decrease in demand for our CCOP products related to the recent global economic downturn as our customers slowed deployments, offset by increases in our other segments. Additionally, the second quarter of fiscal 2009 included the non-recognition of approximately $10.0 million of a significant customers revenue due to a bankruptcy protection filing. The decrease in our CCOP segment was mainly driven by the decline in demand for our Modules and Submarine products. The Module decline was primarily due to one customer which had significant volumes in the second quarter
Net revenue in the six months ended January 2, 2010 decreased 12%, or $90.3 million, to $640.7 million from $731.0 million in the comparable period in the prior year. The decrease is primarily due to a decrease in demand for our CCOP and Communications Test and Measurement products. The decrease in our CCOP segment was mainly driven by the decline in demand for our Modules and Submarine products. Module revenues declined due to a reduction in sales to six of our largest customers as a result of the global economic slowdown. The Submarine product line has historical cyclical demand swings due to the nature of the deployments. The decrease in our Communications Test and Measurement segment was mainly due to lower volume in our Instruments business as a result of the global economic slowdown. Our AOT business experienced demand increases in 3D, Aerospace, Defense, and Currency products, partially offset by a reduction in transaction card volume and average sale price declines as a result of continued softness in global credit markets and the reluctance of financial institutions to issue new credit cards driven the economic downturn.
Gross profit in the second quarter of fiscal 2010 increased 2%, or $2.9 million, to $138.2 million from $135.3 million in the same quarter a year ago The increase primarily results from the second quarter of fiscal 2009 including both a $4.9 million charge for the impairment of acquired developed technology and the non-recognition of approximately $10.0 million of a significant customers revenue due to a bankruptcy protection filing. Offsetting the effect of these charges this year includes decreases due to lower volumes in our Communications and Commercial Optical Products and the Communications Test and Measurement segments as a result of the global economic slowdown and increased pricing pressure on established products. Gross profit increased slightly in the AOT group due to higher volumes in the Flex business, which carries stronger margins than the Custom Optics and Authentication Solutions divisions.
Gross profit in the six months ended January 2, 2010 decreased 10%, or $28.6 million, to $255.3 million from $283.9 million in the comparable period in the prior year. The decrease is primarily due to the global economic slowdown and its impact on our customer demand and pricing, which was offset by the impairment of acquired developed technology and non-recognition of revenue in the second quarter of fiscal 2009 discussed above. We continue to benefit from lower costs associated with our outsourcing initiative. Such benefits are partially offset by the transition costs as a result of the outsourcing initiative.
R&D and SG&A expenses for the second quarter of fiscal 2010 decreased 7%, or $9.6 million to $136.2 million, from $145.8 million in the same period a year ago. The decrease for the three months ended January 2, 2010 is mainly due to lower project spending, headcount reduction and other cost reduction efforts across all segments. R&D and SG&A expenses for the six months ended January 2, 2010 decreased 11%, or $32.5 million to $268.2 million, from $300.7 million in the same period a year ago. The decrease for the six months ended January 2, 2010 is primarily due to lower project spending, with fiscal 2009 including expenses related to an Oracle upgrade program, together with headcount reduction and other cost reduction efforts across all segments.
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