Nepean, Ontario, San Jose, Calif., and Santa Rosa, Calif., January 19, 2000- JDS Uniphase Corporation (Nasdaq: JDSU and TSE: JDU) today reported sales for its second quarter ended December 31, 1999, of $282 million and pro forma net income of $66 million or $.18 per diluted share.
Sales for the quarter were 119% above pro forma combined sales of $129 million in the quarter ended December 31, 1998, and were 22% higher than net sales of $230 million in the quarter ended September 30, 1999. Pro forma sales for the prior year combine the separately reported results of JDS FITEL Inc. and Uniphase Corporation, which merged in a transaction accounted for as a purchase at the close of business on June 30, 1999.
Including merger-related and purchased intangibles amortization charges, the Company reported a loss of $131 million or $.38 per share for the quarter. Results for the quarter include the post-acquisition results of Epitaxx and Sifam which were acquired on November 15, 1999, and December 16, 1999, respectively, in transactions accounted for as purchases.
On a pro forma basis, excluding merger-related charges and the amortization of purchased intangible assets, JDS Uniphase reported net income of $66 million or $0.18 per share for the quarter, an increase of 145% over the $27 million or $0.08 per share pro forma combined income for the quarter ended December 31, 1998. The impact of excluded acquisition, divestiture and amortization costs is summarized in the Company’s pro forma financial tables that follow in this release.
The following table summarizes pro forma results for the quarters ended December 31, 1999 and 1998.
|
(in millions, except per share amounts) |
Three months ended
December 31 |
|
1999 |
|
1998 |
|
Net sales |
$281.7 |
|
$128.7 |
|
Gross profit* |
142.6 |
|
64.5 |
|
Income from operations |
87.3 |
|
38.7 |
|
Income before income taxes |
98.0 |
|
41.0 |
|
Net income* |
$65.7 |
|
$26.8 |
|
Net income per diluted share |
$0.18 |
|
$0.08 |
|
Diluted weighted avg. shares outstanding |
374.3 |
|
336.7 |
* Pro forma results for the quarter ended December 31, 1999, exclude the purchase accounting impact on gross profit and in process R&D recorded in connection with the acquisitions of Epitaxx and Sifam and the amortization of purchased intangibles. Pro forma results for the quarter ended December 31, 1998, exclude the amortization of purchased intangibles, UBP merger costs, the loss on disposal of Ultrapointe and reclassification of certain JDS FITEL costs to cost of sales to conform treatment. These pro forma results also reflect the impact of the pro forma adjustments on income tax expense.
The Company also announced it will change its fiscal calendar effective July 1, 2000. Fiscal periods thereafter will end on the Saturday nearest the calendar month end, and the change will not result in any differences in fiscal 2001 financial results as compared to the Company’s current fiscal calendar.
JDS Uniphase is a high technology company that designs, develops, manufactures and distributes a comprehensive range of products for the growing fiberoptic communications market. These products are deployed by system manufacturers worldwide to develop advanced optical networks for the telecommunications and cable television industries. JDS Uniphase Corporation is traded on the Nasdaq National Market under the symbol JDSU, and the exchangeable shares of JDS Uniphase Canada Ltd. are traded on The Toronto Stock Exchange under the symbol JDU. More information on JDS Uniphase is available at www.jdsunph.com.
-SELECTED FINANCIAL DATA FOLLOWS-
JDS UNIPHASE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions except per share data)
(unaudited)
|
|
|
Three months ended December 31 |
|
Six months ended December 31, |
|
|
|
1999 |
|
1998 |
|
1999 |
|
1998 |
| Net sales |
$281.7 |
|
$63.8 |
|
$511.8 |
|
$121.2 |
| Cost of sales |
139.2 |
|
33.5 |
|
264.5 |
|
62.4 |
| Gross profit |
142.5 |
|
30.3 |
|
247.3 |
|
58.8 |
| Operating expenses |
|
|
|
|
|
|
|
|
Research and development |
21.6 |
|
5.8 |
|
38.9 |
|
11.4 |
|
Selling, general and administrative |
33.8 |
|
8.4 |
|
61.6 |
|
15.5 |
|
Amortization of purchased intangibles |
185.1 |
|
4.0 |
|
358.0 |
|
7.9 |
|
Acquired in-process R&D |
19.7 |
|
-- |
|
19.7 |
|
-- |
|
Other operating expenses |
-- |
|
6.3 |
|
-- |
|
6.3 |
| Total operating expenses |
260.2 |
|
24.5 |
|
478.2 |
|
41.1 |
| Income (loss) from operations |
(117.7) |
|
5.8 |
|
(230.9) |
|
17.7 |
| Interest and other income, net |
10.7 |
|
0.8 |
|
16.2 |
|
1.8 |
| Income (loss) before income taxes |
(107.0) |
|
6.6 |
|
(214.7) |
|
19.5 |
| Income tax expense |
24.2 |
|
4.2 |
|
30.5 |
|
8.9 |
| Net income (loss) |
$(131.2) |
|
$2.4 |
|
$(245.2) |
|
$10.6 |
| Net income (loss) per share |
$(0.38) |
|
$0.02 |
|
$ (0.72) |
|
$0.07 |
| Net income (loss) per share, diluted basis |
$(0.38) |
|
$0.01 |
|
$ (0.72) |
|
$0.06 |
| Number of weighted average shares outstanding |
345.3 |
|
158.1 |
|
342.1 |
|
157.3 |
| Number of weighted average shares and equivalents |
345.3 |
|
169.0 |
|
342.1 |
|
168.0 |
JDS UNIPHASE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
| |
December 31, 1999 |
|
December 31, 1999 |
| |
(unaudited) |
|
|
| Current assets: |
|
|
|
|
Cash, cash equivalents and short-term investments |
$885.1 |
|
$233.9 |
|
Accounts receivable, less allowances for doubtful accounts |
185.2 |
|
120.9 |
|
Inventories |
134.7 |
|
134.7 |
|
Prepaid assets and other current assets |
23.3 |
|
21.0 |
| Total current assets |
1,228.3 |
|
463.6 |
| Property, plant, and equipment, net |
256.5 |
|
181.1 |
| Intangible assets |
3,690.4 |
|
3,690.4 |
| Other assets |
11.2 |
|
7.2 |
| TOTAL ASSETS |
$5,186.4 |
|
$4,096.1 |
| Current liabilities: |
|
|
|
|
Accounts payable |
$73.5 |
|
$38.1 |
|
Accrued payroll and related expenses |
43.9 |
|
27.2 |
|
Income taxes payable |
27.7 |
|
37.2 |
|
Other accrued expenses |
77.2 |
|
46.3 |
| Total current liabilities |
222.3 |
|
148.8 |
| Deferred tax liabilities |
289.4 |
|
318.2 |
| Other non-current liabilities |
13.2 |
|
9.8 |
| Stockholders’ equity: |
|
|
|
|
Common stock and additional paid-in capital |
5,105.5 |
|
3,822.8 |
|
Accumulated deficit and other stockholders’ equity |
(444.0) |
|
(203.5) |
| Total stockholders’ equity |
4,661.5 |
|
3,619.3 |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$5,186.4 |
|
$4,096.1 |
JDS UNIPHASE CORPORATION
OPERATING SEGMENT INFORMATION
(in millions)
(unaudited)
|
|
|
Three months ended
December 31 |
|
Six months ended December 31, |
|
|
|
1999 |
|
1998 |
|
1999 |
|
1998 |
| Components: |
|
|
|
|
|
|
|
|
Shipments |
$201.7 |
|
$36.9 |
|
$361.6 |
|
$71.3 |
|
Intersegment sales |
(28.0) |
|
(0.7) |
|
(46.7) |
|
(1.6) |
| Net sales to external customers |
$173.7 |
|
$36.2 |
|
$314.9 |
|
$69.7 |
|
Operating income |
66.9 |
|
10.0 |
|
121.8 |
|
19.4 |
| Modules: |
|
|
|
|
|
|
|
|
Shipments |
$94.0 |
|
$12.8 |
|
$170.3 |
|
$22.0 |
|
Intersegment sales |
-- |
|
-- |
|
-- |
|
-- |
| Net sales to external customers |
$94.0 |
|
$12.8 |
|
$170.3 |
|
$22.0 |
|
Operating income |
19.9 |
|
3.7 |
|
36.6 |
|
5.5 |
| Net sales by reportable segments |
$267.7 |
|
$49.0 |
|
$485.2 |
|
$91.7 |
| All other net sales |
14.0 |
|
14.8 |
|
26.6 |
|
29.5 |
|
$281.7 |
|
$63.8 |
|
$511.8 |
|
$121.2 |
| Operating income by reportable segment |
$86.8 |
|
$13.7 |
|
$158.4 |
|
$24.9 |
| All other operating income (loss) |
0.3 |
|
2.4 |
|
(11.6) |
|
6.9 |
| Unallocated amounts: |
|
|
|
|
|
|
|
|
Acquisition related charges |
(204.8) |
|
(10.3) |
|
(377.7) |
|
(14.2) |
|
Interest and other income, net |
10.7 |
|
0.8 |
|
16.2 |
|
1.8 |
| Income (loss) before income taxes |
$(107.0) |
|
$6.6 |
|
$(214.7) |
|
$19.4 |
JDS UNIPHASE CORPORATION
PRO FORMA STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)
|
Three months ended December 31, 1999 |
|
As Reported |
Pro Forma Adjustments |
Pro Forma |
| Net sales |
$281.7 |
-- |
$281.7 |
| Cost of sales* |
139.2 |
$ (0.2) |
139.0 |
| Gross profit |
142.5 |
0.2 |
142.7 |
| Total operating expenses* |
260.2 |
(204.8) |
55.4 |
| Income (loss) from operations |
(117.7) |
205.0 |
87.3 |
| Interest and other income, net |
10.7 |
-- |
10.7 |
| Income (loss) before income taxes |
(107.0) |
205.0 |
98.0 |
| Income tax expense* |
24.2 |
8.1 |
32.3 |
| Net income (loss) |
$(131.2) |
$196.9 |
$65.7 |
| Net income (loss) per share |
$(0.38) |
|
$0.19 |
| Net income (loss) per share, diluted basis |
$(0.38) |
|
$0.18 |
| Number of weighted average shares outstanding |
345.3 |
|
345.3 |
| Number of weighted average shares and equivalents |
345.3 |
|
374.3 |
|
Three months ended December 31, 1998 |
| |
Uniphase |
JDS FITEL |
Pro Forma Adjustments |
Pro Forma |
| Net sales |
$63.8 |
$65.0 |
-- |
$128.8 |
| Cost of sales |
33.5 |
31.1 |
(0.4) |
64.3 |
| Gross profit |
30.3 |
33.9 |
0.4 |
64.5 |
| Total operating expenses* |
24.5 |
12.9 |
(11.4) |
25.9 |
| Income from operations |
5.8 |
21.0 |
11.8 |
38.6 |
| Interest and other income, net |
0.8 |
1.5 |
-- |
2.3 |
| Income before income taxes |
6.6 |
22.5 |
11.8 |
40.9 |
| Income tax expense* |
4.2 |
8.3 |
1.6 |
14.1 |
| Net income |
$2.4 |
$14.2 |
$ 10.2 |
$26.8 |
| Net income per share |
|
|
|
$0.08 |
| Net income per share, diluted basis |
|
|
|
$0.08 |
| Number of weighted average shares outstanding |
|
|
|
316.6 |
| Number of weighted average shares and equivalents |
|
|
|
336.7 |
* Pro forma results for the quarter ended December 31, 1999, exclude the purchase accounting impact on gross profit and in-process R&D recorded in connection with the acquisitions of Epitaxx and Sifam and the amortization of purchased intangibles. Pro forma results for the quarter ended December 31, 1998, exclude the amortization of purchased intangibles, UBP merger costs, the loss on disposal of Ultrapointe and reclassification of certain JDS FITEL costs to cost of sales to conform treatment. These pro forma results also reflect the impact of the pro forma adjustments on income tax expense.
JDS UNIPHASE CORPORATION
PRO FORMA STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)
|
Six months ended December 31, 1999 |
|
As Reported |
Pro Forma Adjustments |
Pro Forma |
| Net sales |
$511.8 |
-- |
$511.8 |
| Cost of sales* |
264.5 |
$(11.6) |
252.9 |
| Gross profit |
247.3 |
11.6 |
258.9 |
| Total operating expenses* |
478.2 |
(377.7) |
100.5 |
| Income (loss) from operations |
(230.9) |
389.3 |
158.4 |
| Interest and other income, net |
16.2 |
-- |
16.2 |
| Income (loss) before income taxes |
(214.7) |
389.3 |
174.6 |
| Income tax expense* |
30.5 |
27.1 |
57.6 |
| Net income (loss) |
$(245.2) |
$362.2 |
$117.0 |
| Net income (loss) per share |
$(0.72) |
|
$0.34 |
| Net income (loss) per share, diluted basis |
$(0.72) |
|
$0.32 |
| Number of weighted average shares outstanding |
342.1 |
|
342.1 |
| Number of weighted average shares and equivalents |
342.1 |
|
369.1 |
|
Six months ended December 31, 1998 |
| |
Uniphase |
JDS FITEL |
Pro Forma Adjustments |
Pro Forma |
| Net sales |
$121.2 |
$120.2 |
-- |
$241.4 |
| Cost of sales |
62.4 |
57.5 |
0.6 |
120.5 |
| Gross profit |
58.8 |
62.7 |
(0.6) |
120.9 |
| Total operating expenses* |
41.1 |
24.6 |
(16.3) |
49.4 |
| Income from operations |
17.7 |
38.1 |
15.7 |
71.5 |
| Interest and other income, net |
1.8 |
3.1 |
-- |
4.9 |
| Income before income taxes |
19.5 |
41.2 |
15.7 |
76.4 |
| Income tax expense* |
8.9 |
15.2 |
2.2 |
26.3 |
| Net income |
$10.6 |
$26.0 |
$13.6 |
$50.1 |
| Net income per share |
|
|
|
$0.16 |
| Net income per share, diluted basis |
|
|
|
$0.15 |
| Number of weighted average shares outstanding |
|
|
|
315.6 |
| Number of weighted average shares and equivalents |
|
|
|
336.4 |
* Pro forma results for the six months ended December 31, 1999, exclude the purchase accounting impact on gross profit and in-process R&D recorded in connection with the JDS FITEL, Epitaxx and Sifam transactions and the amortization of purchased intangibles. Pro forma results for the six months ended December 31, 1998, exclude the amortization of purchased intangibles, UBP merger costs, the loss on disposal of Ultrapointe and reclassification of certain JDS FITEL costs to cost of sales to conform treatment. These pro forma results also reflect the impact of the pro forma adjustments on income tax expense.