San Jose, California – November 15, 2004 – As part of a wider program to drive operational efficiencies throughout the Company, JDS Uniphase (NASDAQ: JDSU and TSX: JDU.NV) today announced a strategic supply agreement with Fabrinet to further consolidate manufacturing and streamline its supply chain.
The agreement includes the sale to Fabrinet of JDS Uniphase’s Singapore and Bintan, Indonesia, manufacturing operations and provides JDS Uniphase with long-term sourcing guarantees for the datacom transceivers currently being manufactured at these facilities. Approximately 450 employees associated with manufacturing will transfer to Fabrinet, although JDS Uniphase will retain its Singapore design and development team. Terms of the agreement were not disclosed.
“Since 2000, Fabrinet has established itself as a dependable partner, and we are confident in their commitment to high quality, cost-effective and scalable manufacturing services,” said Debora Shoquist, vice president of Operations for JDS Uniphase. “As part of our overall commitment to customer responsiveness, we believe this consolidation will allow us to gain efficiencies, leverage our partner’s strengths and simplify our supply chain, without detriment to our customers’ stringent quality requirements.”
JDS Uniphase has been consolidating its manufacturing and transferring product lines to high volume, lower cost operations such as its Shenzhen facility and with manufacturing partners such as Fabrinet. We believe this strategy allows JDS Uniphase to leverage greater economies of scale and streamlined operations to drive cost and quality improvements, quicker turnaround and reduced lead times.
Fabrinet, a contract manufacturer with operations in Bangkok, Thailand, has been providing high volume, lower cost manufacturing services to major optical component suppliers including JDS Uniphase since 2000, and has been manufacturing datacom transceivers for JDS Uniphase since 2002.
About Fabrinet
Fabrinet is a manufacturing services company specializing in the engineering and manufacture of complex optical, mechanical, and electronic components, modules, and subassemblies for a wide range of industries including communications, automotive & aeronautics, medical devices, consumer electronics, and industrial. For more information, contact Mark Schwartz at 925-934-2048, mschwartz@fabrinet.com, or visit the website at http://www.fabrinet.com/.
About JDS Uniphase
JDS Uniphase Corporation designs and manufactures products for markets where its core optics technologies provide innovative solutions for industrial, commercial and consumer applications. The Company offers components, modules and subsystems for data communications, telecommunications and cable television, display, security, medical/environmental instrumentation, decorative, aerospace and defense applications. More information is available at http://www.jdsu.com/.
The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. Such forward-looking statements include, but are not limited to the expected benefits of the manufacturing consolidation and related supply agreement, including, without limitation, expected cost savings and other efficiencies, quicker turnaround, reduced lead times, economies of scale, cost, and supply chain simplification, and benefits of manufacturing consolidation. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. Risks and uncertainties that could cause actual results to differ materially from such forward-looking statements include, but are not limited to, the risks that (a) the transaction may not lead to greater operational efficiencies, reductions in cost, improved turnaround, reduced lead times or greater economies of scale without detriment to customer quality requirements, (b) and those risks discussed from time to time in reports filed by JDS Uniphase Corporation with the Securities and Exchange Commission. The forward-looking statements contained in this news release are made as of the date hereof and JDS Uniphase Corporation assumes no obligation to update the reasons why actual results could differ materially from those projected in the forward-looking statements.
General Inquiries: Contact your JDS Uniphase Representative or call 800-498-5378 in North America or + 800-5378-5378 outside of North America.
Media Inquiries: Pamela Sufi, Corporate Marketing Communications, 408-546-4714 or pam.sufi@jdsu.com
Investor Inquiries: Investor Relations, 408-546-4445 or investor.relations@jdsu.com