Milpitas, California, November 5, 2009 – JDSU (NASDAQ: JDSU; and TSX: JDU) today reported results for its first fiscal quarter ended October 3, 2009.

Net revenue for the first fiscal quarter was $297.8 million and the net loss was $(31.9) million, or $(0.15) per share. This compares to net revenue of $273.1 million and a net loss of $(63.6) million or $(0.29) per share for the prior quarter, and net revenue of $377.2 million and a net loss of $(21.3) million or $(0.10) per share for the first fiscal quarter of 2009.

On a non-GAAP basis, net revenue for the first quarter was $298.6 million and net income for the quarter was $9.0 million or $0.04 per share.  This compares to non-GAAP net revenue of $274.0 million and net loss of $(1.6) million or $(0.01) per share for the prior quarter, and non-GAAP net revenue of $377.3 million and net income of $23.9 million or $0.11 per share for the first fiscal quarter of 2009.

“Our fiscal Q1 results represent growth across all of our business segments providing clear evidence of improving demand from our customers,” said Tom Waechter, JDSU’s President and Chief Executive Officer. “The leverage in our operating model and balance sheet will become increasingly evident as our top line grows.”

Financial Overview –First Fiscal Quarter Ended October 3, 2009

• Non-GAAP net revenue of $298.6 million, which includes $7.5 million from the acquisition of the Storage Network Tools business, increased 9% when compared to the previous quarter and decreased 21% when compared to the first quarter of fiscal 2009.
• Non-GAAP gross margin was 44% compared to 42% for the prior quarter and 43% for first quarter of fiscal 2009.
• Non-GAAP operating margin was 3% compared to an operating loss of 1% in the prior quarter and operating margin of 6% in first quarter of fiscal 2009.
• Communications Test and Measurement revenue of $143.4 million increased 8% from the previous quarter and decreased 11% compared to the first quarter of fiscal 2009. Revenue from this segment represented 48% of total non-GAAP net revenue.
• Communications and Commercial Optical Products revenue of $101.1 million increased 12% when compared with the previous quarter and decreased 38% when compared to the first quarter of fiscal 2009.  Revenue from this segment represented 34% of total non-GAAP net revenue.
  • Optical Communications revenue of $86.0 million increased 9% compared with the previous quarter and decreased 39% compared to the first quarter of fiscal 2009.
  • Our Commercial Lasers business reported revenue of $15.1 million increased 32% from the previous quarter and down 30% from the first quarter of fiscal 2009.
• Revenue from the Advanced Optical Technologies segment was $54.1 million increased 7% from the previous quarter and 1% compared to the first quarter of fiscal 2009.  Revenue from this segment represented 18% of total non-GAAP net revenue.
• Americas’ customers represented 51% of total non-GAAP net revenue for the quarter. European and Asia-Pacific customers represented 27% and 22% of total non-GAAP net revenue, respectively.
• The Company held $673.1 million in total cash and investments and was free cash flow positive $11.2 million for the quarter.
• The Company adopted new authoritative accounting guidance which requires the issuers of certain debt instrument(s) to separately account for the liability and equity components in a manner that reflects the entity’s nonconvertible debt borrowing rate, resulting in a non-cash $4.2 million charge to interest expense in the quarter relating to the 1% Senior Convertible Notes. In addition, the Company retrospectively adjusted its financial statements through the fourth quarter of fiscal 2009 to reflect a reduction in the long-term debt balance and an increase in stockholders’ equity and interest expense.
• The Company has retrospectively adjusted its Consolidated Statements of Operations and the Communications Test and Measurement segment financials to reflect the sale of certain non-core assets. These adjusted results are reflected as discontinued operations for the periods reported.

Business Outlook

For the second quarter of fiscal 2010, ending January 2, 2010, the Company expects non-GAAP net revenue to be in the range of $320 to $345 million.

Conference Call

The Company will discuss these results and other related matters at 2:00 p.m. Pacific Time on November 5, 2009 in alive webcast, which will also be archived for replay on the Company's website at www.jdsu.com/investors.  This press releaseis 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, as well as the migration to vendor managed inventory programs; (b) quarter-over-quarter product mix fluctuations, which can materially impact profitability measures due to the broad gross margin range across our portfolio; (c) consolidation of 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 businesses; (e) 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; (f) we are currently engaged in various product and manufacturing transfers, site consolidations and product discontinuances, which has caused and may cause short term disruptions; and (g) the ability of our suppliers and contract manufacturers to meet additional production and delivery requirements beyond our forecasted demand.

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 Annual Report on Form 10-K for the fiscal year ended June 27, 2009 filed with the Securities and Exchange Commission. 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:  Michelle Levine Schwartz, 408-546-4421 or michelle.levine@jdsu.com 
Press: Jim Monroe, 240-404-1922, or jim.monroe@jdsu.com

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

SELECTED FINANCIAL DATA TO FOLLOW