Transfer of Employees and Inventory Will Ensure Seamless Operations and Order Fulfillment for Customers
Milpitas, California, February 5, 2009 – JDSU (the “Company”/NASDAQ: JDSU; and TSX: JDU) today announced that it has signed a definitive agreement with Sanmina-SCI Corporation (NASDAQ GS: SANM), a leading electronics manufacturing services (EMS) provider, for the manufacturing of JDSU products. Under the terms of the agreement, Sanmina-SCI will acquire certain manufacturing assets, inventories, and employees related to JDSU’s operations in Shenzhen, China. The agreement is subject to certain customary closing conditions, including regulatory approval. JDSU and Sanmina-SCI anticipate the transaction to close before April 6, 2009.
As part of the agreement, Sanmina-SCI will build on the strong capabilities of JDSU's Shenzhen operations to offer the world's leading telecommunications companies access to cutting-edge New Product Introduction (NPI) and manufacturing services for advanced optical products. The seamless transfer of a well trained and skilled organization will allow Sanmina-SCI to produce and deliver orders without any interruption to JDSU and its customers. JDSU will continue to maintain corporate functions and product development in the region.
"The new partnership represents an important part of JDSU’s manufacturing strategy to leverage the skills of world-class EMS partners like Sanmina-SCI for products and services where possible, while retaining key elements internally that provide a unique advantage to JDSU," said Alan Lowe, president of the Communications and Commercial Optical Products business segment at JDSU. "Working with a leader like Sanmina-SCI provides JDSU with the flexibility to best support our customers and ensure joint success in today’s economic climate."
"We are pleased to partner with JDSU, a recognized optical communications leader. This collaboration fulfills our long-term strategic goal to expand and solidify our position in this field. The combination of our current capabilities and the expertise of the Shenzhen team will give Sanmina-SCI the strongest optical assembly and test resources of any major EMS company," said Hari Pillai, president and chief operating officer of Sanmina-SCI.
JDSU (NASDAQ: JDSU; and TSX: JDU) enables broadband and optical innovation in the communications, commercial and consumer markets. JDSU is the 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/.
Sanmina-SCI Corporation is a leading electronics contract manufacturer serving the fastest-growing segments of the global Electronics Manufacturing Services (EMS) market. Recognized as a technology leader, Sanmina-SCI provides end-to-end manufacturing solutions and delivers superior quality and support to OEMs primarily in the communications, defense and aerospace, industrial and medical instrumentation, multimedia, enterprise computing and storage and automotive technology sectors. Sanmina-SCI has facilities strategically located in key regions throughout the world. More information regarding the company is available at http://www.sanmina-sci.com/.
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