Milpitas, California, April 29, 2009 – JDSU (NASDAQ: JDSU; and TSX: JDU) today reported results for its third fiscal quarter ended March 28, 2009.

Net revenue for the third fiscal quarter was $280.6 million and the net loss was $(85.2) million, or $(0.40) per share, which included a $45 million impairment of goodwill. This compares to net revenue of $383.9 million and a net loss of $(6.2) million or $(0.03) per share in the third fiscal quarter of 2008.

On a non-GAAP basis, net loss for the quarter was $(6.9) million or $(0.03) per share.  This compares with non-GAAP net income of $31.2 million or $0.14 per share in the third fiscal quarter of 2008.

On an adjusted EBITDA basis (adjusted Earnings Before Interest, Taxes, Depreciation and Amortization) the Company reported $9.3 million for the quarter, which compares to $32.3 million in the third fiscal quarter of 2008.

“We generated positive free cash flow and fortified our balance sheet during these challenging economic times,” said Tom Waechter, JSDU’s President and Chief Executive Officer.  “We remain confident in our long-term market opportunities and will continue to focus on innovation and our lean initiative activities to position JDSU for future growth and ongoing market leadership.”

Financial Overview –Third Fiscal Quarter Ended March 28, 2009

• Third quarter non-GAAP net revenue of $280.7 million decreased 21.4% when compared to the previous quarter and 26.9% when compared to the third quarter of fiscal 2008.
• Non-GAAP gross margins were 41.8% compared to 43.5% in fiscal Q2 2009 and 42.6% in fiscal Q3 2008.
• Non-GAAP operating margins were (2.8%) compared to 5.2% in fiscal Q2 2009 and 4.1% in fiscal Q3 2008.
• Communications Test and Measurement revenue of $129.2 million decreased 26.7% from the previous quarter and decreased 23.6% compared to the third quarter of fiscal 2008. Revenue from this segment represented 46% of total non-GAAP net revenue.
• Third quarter Communication and Commercial Optical Products revenue of $100.5 million decreased 21.4% compared with the previous quarter and 36.9% compared to the third quarter of fiscal 2008.  Revenue from this segment represented 35.8% of total non-GAAP net revenue.
  • Third quarter Optical Communications revenue of $89 million decreased 18.7% compared with the previous quarter and 34.6% compared to the third quarter of fiscal 2008.
  • Our Commercial Lasers business reported revenue of $11.5 million, down 37.5% from the previous quarter and 50.2% from the third quarter of fiscal 2008.
• Revenue from the Advanced Optical Technologies segment was $51.0 million, down 4.0% from the previous quarter and down 8.8% compared to the third quarter of fiscal 2008.  Revenue from this segment represented 18.2% of total non-GAAP net revenue.
• Americas’ customers represented 42% of total non-GAAP net revenue. European and Asia-Pacific customers represented 34% and 24% of total non-GAAP net revenue, respectively.
• The $45.0 million goodwill impairment charge resulted from the completion of our mid-year analysis for impairment of goodwill and long lived assets.
• Net cash for the quarter increased by $34.5 million as we reduced our total inventory by $40.4 million, reduced our Days Sales Outstanding by 3 days, and reduced our outstanding debt balance by $50 million.
• The Company held $673.5 million in total cash.  During the quarter the Company reduced its outstanding debt by $50.0 million resulting in a gain from the repurchase of convertible debt of $20.0 million.
• The Company was free cash flow positive $15.3 million for the third quarter.

Business Outlook

For the fourth quarter of fiscal 2009, ending June 27, 2009, the Company expects revenue to be in the range of $265 to $285 million.

Conference Call

The Company will discuss these results and other related matters at 2:00 p.m. Pacific Time on April 29, 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 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 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; (b) the ongoing potential for significant quarter-over-quarter product mix fluctuations, which can materially impact profitability measures due to the broad gross margin range across our portfolio; (c) continuing consolidation activities affecting 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) we and many of our Optical Communications suppliers continue to experience execution and delivery challenges which limit our revenue and impair our profitability; (f) 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; (g) as we implement vendor-managed-inventory and similar programs for our customers, our visibility may be reduced; (h) we are currently engaged in various product and manufacturing transfers, site consolidations and product discontinuances, which has caused and may continue to cause execution disruptions, customer satisfaction issues and quality and delivery problems.

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/A for the year ended June 28, 2008 and the Company’s Quarterly Report on Form 10-Q for the second fiscal quarter ended December 27, 2008, 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:  Rachel Shelton/Eastwick Communications, 650-480-4069, or rachel.shelton@eastwick.com

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

SELECTED FINANCIAL DATA TO FOLLOW