Milpitas, California, August 20, 2008 – JDSU (NASDAQ: JDSU) today reported results for its fourth quarter and year ended June 28, 2008.
Net revenue for the fourth quarter was $390.3 million and the net loss was $(29.8) million, or $(0.13) per share. This compares to net revenue of $350.7 million and a net loss of $(17.9) million or $(0.08) per share in the fourth quarter of 2007. The increase in net loss is primarily due to non-recurring charges in the fourth quarter of fiscal 2008.
For the full fiscal year 2008, net revenue of $1,530.1 million grew 9.5% from $1,396.8 million in fiscal 2007. The net loss for the year of $(21.7) million, or $(0.10) per share, improved from a net loss of $(26.3) million, or $(0.12) per share, in fiscal year 2007.
On a non-GAAP basis net income for the quarter was $15.5 million or $0.07 per share. This compares with non-GAAP net income of $15.0 million or $0.07 per share in the fourth quarter of 2007. On a total year basis, fiscal 2008 non-GAAP net income was $114.9 million or $0.50 per share, which compares to $64.1 million or $0.29 per share for fiscal 2007.
On an adjusted EBITDA basis (adjusted Earnings Before Interest, Taxes, Depreciation and Amortization) the Company reported $25.1 million for the fourth quarter, which compares to $11.7 million in the fourth quarter of 2007. For the total year, adjusted EBITDA was $142.9 million which compares to $72.9 million for fiscal 2007.
“In 2008, JDSU achieved solid growth in revenue, non-GAAP net income and free cash flow,” said Kevin Kennedy, JDSU’s Chief Executive Officer. “Moving into 2009, we will continue to focus on advancing our business model across all of our business segments.”
Financial Overview – Fiscal 2008 Fourth Quarter Ended June 28, 2008
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On an annual basis, year-over-year revenue grew in three out of four business segments The annual growth in optical communications was 6%, communications test and measurement grew 12%, advanced optical technologies grew 21%, while lasers declined by 9%.
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Fourth-quarter optical communications non-GAAP net revenue of $145.1 million grew 6.6% from the third quarter level of $136.1 million. Revenue from this segment represented 37% of total non-GAAP net revenue.
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Communications Test and Measurement non-GAAP net revenue of $170.5 million was up 0.7% from the third quarter level of $169.3 million, and represented 44% of total non-GAAP net revenue.
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Non-GAAP net revenue from the Advanced Optical Technologies segment was $52.9 million, down from the third quarter level of $55.8 million, and represented 13% of total non-GAAP net revenue.
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Our Commercial Lasers business reported non-GAAP net revenue of $22.1 million, down from the third quarter level of $23.0 million, and represented 6% of total non-GAAP net revenue.
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Americas’ customers represented 50% of total non-GAAP net revenue. European and Asia-Pacific customers represented 29% and 21% of total non-GAAP net revenue, respectively.
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The Company incurred an impairment of goodwill and intangibles, associated with two acquisitions, for $45.4 million and patent and litigation charges for $20.8 million. The Company also received $61.6 million in cash and securities from a securities litigation settlement. The total impact of these items lowered GAAP net income by $4.6 million for the quarter.
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The Company held $903.0 million in total cash. During the quarter the Company reduced its short term debt by $75.0 million and bought back stock for $113.2 million. The Company was free cash flow positive $9.0 million, excluding the cash received from the securities litigation settlement.
Business Outlook
For the first quarter of fiscal 2009, ending September 27, 2008, the Company expects revenue to be in the range of $378 to $394 million.
Conference Call
The Company will discuss these results and other related matters at 2:00 p.m. Pacific Time on August 20, 2008 in a live webcast, which will also be archived for replay on the Company's website at www.jdsu.com/investors. This press release is being furnished as a Current Report on Form 8-K with the Securities and Exchange Commission, and will be available at http://www.sec.gov/.
About JDSU
JDSU (NASDAQ: JDSU; and TSX: JDU) 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. More information is available at http://www.jdsu.com/.
Forward-Looking Statements
This press release contains, and the discussions in our subsequent conference call will contain, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include: (i) any anticipation or guidance as to future financial performance, including future revenue, gross margin, operating expense, operating margin, EBITDA, cash flow and other financial metrics; and (ii) the Company's beliefs regarding the purpose, usefulness and efficacy of non-GAAP results and the measures and items the Company includes in the same, as well as any benefits to investors the Company believes its non-GAAP measures provide. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. In particular, the Company's ability to predict future financial performance continues to be difficult due to, among other things: (a) continuing general limited visibility across many of our product lines exacerbated by the current credit and financial market uncertainty; (b) the ongoing potential for significant quarter-over-quarter product mix fluctuations, which can materially impact profitability measures due to the broad gross margin range across our portfolio; (c) continuing consolidation activities affecting our customer base, which, in the shorter term limits demand visibility, and, in the longer term, could reduce our business potential; (d) average selling prices continue to decline across our traditional Optical Communications and our Advanced Optical Technologies and Commercial Lasers businesses; (e) we and many of our Optical Communications suppliers continue to experience execution and delivery challenges which limit our revenue and impair our profitability; (f) our Communications Test and Measurement business is notable for seasonality and a significant level of in-quarter book-and-ship business, further limiting our forecasting abilities; (g) we are currently engaged in various product and manufacturing transfers, site consolidations and product discontinuances, which has caused and may continue to cause execution disruptions, customer satisfaction issues and quality and delivery problems; and (h) we are currently materially upgrading our ERP systems, which if not completed on-time and on budget could materially impair our business in the near term and create additional future expenses and customer dissatisfaction.
For more information on these and other risks affecting the Company's business, please refer to the “Risk Factors” section included in the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2007 filed with the Securities and Exchange Commission, as well as in other filings on Forms 10-Q and 10-K. The forward-looking statements contained in this news release are made as of the date hereof and the Company does not assume any obligation to update the reasons why actual results could differ materially from those projected in the forward-looking statements.
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Contacts
Investors: Michelle Levine, 408-546-4421 or michelle.levine@jdsu.com
Press: Kathleen Greene, 408-546-5852 or kathleen.greene@jdsu.com
The following financial tables are presented in accordance with GAAP, unless otherwise specified.
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