San Jose, California, September 1, 2005 – JDS Uniphase Corporation (NASDAQ: JDSU and TSX: JDU) today reported results for the fourth quarter and year ended June 30, 2005. 

Net revenues for the fourth quarter were $170.9 million, and GAAP net loss, inclusive of an impairment charge of $62.7 million, was $145.7 million, or $0.10 per share.   This compares to revenues of $166.3 million and a GAAP net loss of $38.6 million, or $0.03 per share, reported for the third quarter of fiscal 2005, and to revenues of $174.5 million and a GAAP net loss of $21.7 million, or $0.02 per share, for the fourth quarter ended June 30, 2004.

On a non-GAAP basis, net loss for the fourth quarter was $21.8 million, or $0.02 per share, as compared to a non-GAAP net loss of $23.5 million, or $0.02 per share, for the third quarter of fiscal 2005, and to a non-GAAP net loss of $11.9 million, or $0.01 per share, for the fourth quarter of fiscal 2004. 

On a non-GAAP EBITDA basis (non-GAAP earnings before interest, taxes, depreciation and amortization), the Company lost $19.7 million for the quarter ended June 30, 2005, as compared to a loss of $19.8 million for the quarter ended March 31, 2005, and a loss of $9.7 million for the quarter ended June 30, 2004.

“During the quarter, we achieved important milestones in our manufacturing consolidation initiatives, with JDSU’s exit from three manufacturing sites and the sale or phase out of certain products that did not meet our longer term profitability objectives,” said Kevin Kennedy, Chief Executive Officer of JDS Uniphase.   “With 24% year-over-year growth in our optical communications segment, and overall gross margin improvement this quarter, our employees have managed the execution of change very well.” 

For the full fiscal year, net revenues were $712.2 million, compared to net revenues of $635.9 million reported for the prior fiscal year.   GAAP net loss for fiscal 2005 was $261.3 million, or $0.18 per share, which compares to a net loss of $115.5 million, or $0.08 per share for the prior fiscal year.

• Optical Communications net revenue grew 5% sequentially to $106.3 million, and represented 62% of total net revenue.   Net revenue in the Commercial and Consumer segment was flat sequentially, and represented $64.6 million, or 38% of total net revenue. 
• North American customers represented 65% of net revenue. European and Asia-Pacific customers represented 19% and 16% of net revenue, respectively.
• GAAP gross margin was 16.4% of net revenue, and non-GAAP gross margin was 17.6% of net revenue.
• GAAP operating expenses were $137.8 million, including an impairment charge of $62.7 million resulting from the reduction of goodwill, intangibles and long-lived assets associated with the product transitions in the Optics and Display business included in the Commercial and Consumer segment.  This impairment charge is excluded from non-GAAP operating expenses, which totaled $59.8 million.
• The Company held $1,304.5 million in cash, cash equivalents and short-term investments at the end of the fourth quarter.    On August 3, 2005, the Company completed its acquisition of Acterna Inc. The terms of the acquisition included a cash disbursement to Acterna’s shareholders of $450 million.
• The Company consumed approximately $75.7 million in cash and short-term investments during the fourth quarter, including $28.2 million in cash from operations and approximately $59.4 million in cash for acquisition related activity.

Business Outlook

Management provided the following financial guidance.   For the quarter ending September 30, 2005, the Company expects net revenue from its traditional Optical Communications and Commercial and Consumer business segments to range between $163 and $173 million.  When combined with the recently acquired Communications Test and Measurement business segment, total company net revenues for the quarter ending September 30, 2005 are expected to be $250 million, plus or minus $10 million.

Conference Call

The Company will discuss these results and other related matters at 1:30 p.m. Pacific Time on September 1, 2005 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/.

JDS Uniphase is committed to enabling broadband & optical innovation in the communications, commercial and consumer markets. JDS Uniphase is a leading provider of communications test and measurement solutions and optical products for telecommunications service providers, cable operators, and network equipment manufacturers.   Furthermore, JDS Uniphase is a leading provider of innovative optical solutions for medical/environmental instrumentation, semiconductor processing, display, brand authentication, aerospace and defense applications, and decorative.   More information is available at www.jdsu.com.

This press release contains 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 the amount of future revenue or the likelihood, timing or amount of expected cost savings or profitability improvements; 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, including, without limitation, the following:   (i) the Company's ability to predict future financial performance continues to be difficult, as among other things, visibility remains limited, we are experiencing significant quarter over quarter fluctuations in product mix, average selling prices continue to decline across our traditional Communications and Commercial and Consumer product portfolio, we continue to experience execution challenges which limit our revenue and impair our profitability, and we are experiencing declining, but variable, benefits from certain transient items, such as the release of previously accrued reserves and the use of previously written-off inventory;  (ii) the Company’s cost improvement efforts may not be successful in achieving their expected benefits (including, among other things, cost structure, gross margin and other profitability improvements), due to, among other things, shifts in product mix, selling price pressures, costs and delays related to product transfers to lower cost manufacturing locations and associated facility closures, costs and delays associated with facility and asset divestitures, and execution concerns; and (iii) ongoing efforts to design and introduce products that meet customers' future needs and to manufacture such products at competitive costs, and with acceptable quality and profitability, may not be successful.

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, 2005 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.

Contact Information

Investors:       Jacquie Ross, 408-546-4445, investor.relations@jdsu.com
Press:              Jayme Curtis, 408-546-7028, jayme.curtis@jdsu.com

The following financial tables are presented in accordance with GAAP, unless otherwise specified.

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