Milpitas, California, August 25, 2010 – JDSU (NASDAQ: JDSU; and TSX: JDU) today reported results for its fourth fiscal quarter and year ended July 3, 2010.
Net revenue for the fourth fiscal quarter was $390.9 million and the net income was $1.5 million, or $0.01 per share. This compares to net revenue of $332.3 million and a net loss of $(11.9) million or $(0.05) per share for the prior quarter, and net revenue of $273.2 million and a net loss of $(63.6) million or $(0.29) per share for the fourth fiscal quarter of 2009.
For the full fiscal year 2010, net revenue of $1,363.9 million increased 6% from $1,283.3 million for fiscal 2009. The net loss for the year of $(61.8) million, or $(0.28) per share, decreased from a net loss of $(909.5) million, or $(4.22) per share, for fiscal 2009.
On a non-GAAP basis, net revenue for the fourth quarter was $398.1 million and net income for the quarter was $33.1 million, or $0.15 per share. This compares to non-GAAP net revenue of $332.9 million and net income of $23.2 million, or $0.10 per share for the prior quarter, and $274.1 million and net loss of $(1.5) million, or $(0.01) per share, for the fourth fiscal quarter of 2009. On a full year basis, fiscal 2010 non-GAAP revenue was $1,373.4 million and net income for the year was $91.9 million, or $0.41 per share. This compares to non-GAAP net revenue of $1,284.6 million and net income of $42.6 million, or $0.20 per share, for the fiscal year 2009.
"Fiscal 2010 was a year of accelerating revenue growth and portfolio expansion for JDSU,"said Tom Waechter, JDSU’s President and Chief Executive Officer. "We completed two important acquisitions and introduced a number of innovative products that resulted in higher market penetration. At the same time, we continued to execute against our stated strategic priorities, resulting in a more profitable operating model and sustained cash flow. We enter fiscal 2011 with order momentum and an industry-leading product portfolio."
Financial Overview – Fourth Fiscal Quarter Ended July 3, 2010
All numbers in this section are non-GAAP unless stated otherwise.
- Net revenue of $398.1 million, which includes $15.7 million from the acquisition of the Network Solutions Division from Agilent Technologies, Inc., increased 20% compared to the prior quarter and increased 45% compared to the fourth quarter of fiscal 2009.
- Gross margin was 45.5% compared to 44.1% in the prior quarter and 42.2% in fourth quarter of fiscal 2009.
- Operating margin was 9.3% compared to 6.6% in the prior quarter and (1.2%) in fourth quarter of fiscal 2009.
- Communications Test and Measurement revenue of $186.2 million increased 28% compared to the prior quarter and increased 40% compared to the fourth quarter of fiscal 2009. Revenue from this segment represented 47% of total net revenue.
- Communications and Commercial Optical Products revenue of $157.3 million increased 22% compared to the prior quarter and increased 74% compared to the fourth quarter of fiscal 2009. Revenue from this segment represented 39% of total net revenue.
- Optical Communications revenue of $134.7 million increased 23% compared to the prior quarter and increased 70% compared to the fourth quarter of fiscal 2009.
- Commercial Lasers revenue of $22.6 million increased 21% compared to the prior quarter and increased 98% compared to the fourth quarter of fiscal 2009.
- Advanced Optical Technologies revenue of $54.6 million decreased 7% compared to the prior quarter and increased 8% compared to the fourth quarter of fiscal 2009. Revenue from this segment represented 14% of total net revenue.
- Americas’ customers represented 49% of total net revenue for the quarter. European and Asia-Pacific customers represented 26% and 25% of total net revenue, respectively.
- The Company held $600.1 million in total cash and investments and generated $46.9 million of cash from operations for the quarter.
For the first quarter of fiscal 2011, ending October 2, 2010, the Company expects non-GAAP net revenue to be in the range of $410 million to $425 million.
The Company will discuss these results and other related matters at 2:00 p.m. Pacific Time on Wednesday, August 25, 2010 in a live webcast, which will also be archived for replay on the Company's website at www.jdsu.com/investors
. Beginning this quarter, the Company will use a new format for disclosing key financial information associated with its quarterly results. The Company will post and distribute slides outlining the company's latest financial results concurrent with this earnings press release. These slides will now be available prior to management's presentation in order to provide the investment community with additional time for review and analysis. These slides are supplementary and will not be discussed during the earnings call. They will be posted on www.jdsu.com/investors
under the "Financial Information" section. 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 www.sec.gov
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 medical/environmental instrumentation, semiconductor processing, display, brand authentication, aerospace and defense, and decorative applications. More information is available at www.jdsu.com
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 production and delivery requirements to 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.
The following financial tables are presented in accordance with GAAP, unless otherwise specified.