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Milpitas, Calif., July 9, 2009 – JDSU today announced that it has entered into a definitive agreement to acquire the Network Tools business of Finisar Corporation. Network Tools, which had revenue of $44.2 million in Finisar’s fiscal year 2009 ending April 30, 2009, is the world’s leading provider of storage area network (SAN) protocol test tools, software and services. Under the terms of the agreement, JDSU will acquire the Network Tools business for approximately $40.6 million in cash and the parties expect to close the transaction before the end of July 2009.
The complementary acquisition, which JDSU expects to contribute positive operating income in the second quarter of fiscal year 2010, includes the following strategic benefits:
“The Network Tools business is an excellent strategic fit with JDSU,” said Dave Holly, president of JDSU’s Communications Test and Measurement business segment. “The acquisition will immediately establish JDSU as the leading provider of storage network test solutions and create new opportunities to deliver innovation and enhanced services to our lab and manufacturing customers from our combined test expertise.”
The Network Tools portfolio, focused on the SAN analysis and data generation and load testing segments, specializes in a wide range of storage protocols, such as Fibre Channel, Gigabit Ethernet, 10GigE, iSCSI, SAS and SATA. Its products and services, used in the development and field deployment of storage networks, include:
The Network Tools business, currently headquartered in Sunnyvale, CA, includes more than 100 employees worldwide. Upon close of the transaction, Network Tools will form the Storage Network Test unit in the Instrument Business Division of JDSU’s Communications Test and Measurement business segment. Dave Buse will continue to lead the business, reporting to Jerry Gentile, general manager of JDSU’s Instrument Business Division.
About JDSU
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/.
Contacts
Press/Industry: Jim Monroe, +1 240-404-1922 or jim.monroe@jdsu.com
Investors: Michelle Levine, +1 408-546-4421 or michelle.levine@jdsu.com
Certain statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. Such forward-looking statements include, but are not limited to any statement or implication that Finisar Network Tools’ operations, sales channels and business will be successfully incorporated into JDSU, or that Finisar Network Tools’ products described in this presentation (i) will be successfully introduced or marketed, (ii) will be qualified and purchased by our customers, or (iii) will perform to any particular specifications or performance or reliability standards. Such forward-looking statements involve risks and uncertainties that, if realized, could materially impair the Company's results of operations, business, and financial condition. These risks and uncertainties include the following, among other things: (a) our current visibility as to customer demand levels, future market growth and the timing, extent, location, requirements and nature of network build-outs and technology transitions, is extremely limited; (b) our ability to retain key employees within the Network Tools business during the transition phase after the transaction closes; (c) our ability to integrate this new business into our Communications Test and Measurement business segment without interruption to the operation of the business and while generating positive operating income; (d) the products may not (i) perform as expected without material defects, (ii) be manufactured at acceptable volumes, yields, and cost, (iii) be qualified and accepted by our customers, and (iv) successfully compete with products offered by our competitors, (e) anticipated synergies in product innovation and development and services may not materialize; and (f) factors discussed from time to time in reports filed by the Company with the Securities and Exchange Commission. The forward-looking statements contained in this presentation are made as of the date hereof, and the Company does not assume any obligation to update or qualify any of the statements made herein.
