- GAAP Results: Revenue of $405.2 million; gross margin of 42.8%; breakeven EPS
- Non-GAAP Results: Revenue of $411.3 million; gross margin of 47.4%; EPS of $0.20
Milpitas, California, November 4, 2010 – JDSU (NASDAQ: JDSU; and TSX: JDU) today reported results for its first fiscal quarter ended October 2, 2010.
On a GAAP basis, net revenue for the first fiscal quarter of 2011 was $405.2 million and net income was $0.1 million, or breakeven earnings per share. This compares to net revenue of $390.9 million and net income of $1.5 million, or $0.01 per share for the prior quarter, and net revenue of $297.8 million and net loss of $(31.9) million, or $(0.15) per share for the first fiscal quarter of 2010.
On a non-GAAP basis, net revenue for the first fiscal quarter of 2011 was $411.3 million and net income for the quarter was $44.8 million or $0.20 per share. This compares to non-GAAP net revenue of $398.1 million and net income of $33.1 million, or $0.15 per share for the prior quarter, and non-GAAP net revenue of $298.6 million and net income of $9.0 million or $0.04 per share for the first fiscal quarter of 2010.
“In fiscal Q1, JDSU reported its highest gross margin in five years and operating margin that was above our previously stated guidance,” said Tom Waechter, JDSU’s President and Chief Executive Officer. “We expect to continue growing the business as supply constraints ease in our Optical Communications and Test and Measurement businesses and we invest in incremental capacity for Optical Communications. Our balance sheet remains strong and we generated over $35 million of cash from operations during the quarter.”
Financial Overview –First Fiscal Quarter Ended October 2, 2010
All numbers in this section are non-GAAP unless stated otherwise.
- Net revenue of $411.3 million, which included revenue from the Network Solutions Division acquisition, increased 3% compared to the prior quarter and increased 38% compared to the first quarter of fiscal 2010.
- Gross margin was 47.4% compared to 45.5% in the prior quarter and 44.0% in the first quarter of fiscal 2010.
- Operating margin was 10.8% compared to 9.3% in the prior quarter and 3.4% in the first quarter of fiscal 2010.
- Communications Test and Measurement revenue of $182.8 million decreased 2% compared to the prior quarter and increased 27% compared to the first quarter of fiscal 2010. Revenue from this segment represented 44% of total net revenue.
- Communications and Commercial Optical Products revenue of $168.0 million increased 7% compared to the prior quarter and increased 66% compared to the first quarter of fiscal 2010. Revenue from this segment represented 41% of total net revenue.
- Optical Communications revenue of $143.0 million increased 6% compared to the prior quarter and increased 66% compared to the first quarter of fiscal 2010.
- Commercial Lasers revenue of $25.0 million increased 11% compared to the prior quarter and increased 66% compared to the first quarter of fiscal 2010.
- Advanced Optical Technologies revenue of $60.5 million increased 11% compared to the prior quarter and increased 12% compared to the first quarter of fiscal 2010. Revenue from this segment represented 15% of total net revenue.
- Americas’ customers represented 50% of total net revenue for the quarter. European and Asia-Pacific customers each represented 25% of total net revenue.
- The Company held $620.0 million in total cash and cash equivalents and short-term investments and generated $35.7 million of cash from operations for the quarter ended October 2, 2010.
For the second quarter of fiscal 2011, ending January 1, 2011, the Company expects non-GAAP net revenue to be in the range of $425 to $450 million.
The Company will discuss these results and other related matters at 2:00 p.m. Pacific Time on November 4, 2010 in alive webcast, which will also be archived for replay on the Company's website at www.jdsu.com/investors. 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 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/.
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 http://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 July 3, 2010 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.
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The following financial tables are presented in accordance with GAAP, unless otherwise specified.
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